Teryl @ Work

The link to the Treasury Press Release is below.    It appears that the annuitisation is delayed, however the document released is a proposal and the final information will be covered in the budget speech on the 24th February, 2016 by Pravin Gordhan, current Minister of Finance. Much time and expense has been incurred by many companies to ensure compliance with the new act.  It appears that both Nedlac and Cosatu are objecting to a lack of consultation, with two major issues on the table: The savings are part of worker’s income, and should be accessible to the workers, as and when they need them, particularly with no comprehensive social security in place The fact that a comprehensive social security and retirement reform discussion paper has not been published. There has been general communication regarding the Taxation Laws Amendment Act (TLAA).  It was promulgated in 2013 and signed into law on 8 January 2016 i.e. with an effective date of 1 March...

Yes, tips are taxable if they are considered to be part of your gross income and must be declared to SARS. Every time a diner adds a tip to the bill, this income is almost certainly taxable. While there are a number of definitions around the employer /employee / patron relationship, the interpretation given is that income earned in the course of your job should be declared as taxable earnings. Of course, monitoring hand overs of cash is almost impossible.... _____________________________________________________________________ Two case studies direct from the SARS Interpretation Note: No 76 Example 1 – Gross income  Facts:  A, aged 19, works as a porter for the Sparkling Waters Hotel Group in Port Elizabeth.  A is required to assist hotel guests by collecting their luggage on arrival and carrying it to their designated hotel room. A is also required to collect their luggage and transfer it to their vehicle upon departure from the hotel. ...

The new Employment Tax Incentive Bill has raised a lot of questions.   While I put out an overview a few weeks ago, there are some queries that keep coming up.   Over the next week, this blog will cover some of them. Large numbers of unemployed are a problem for any country, but when young people leave the education system with a very poor chance of getting a job, their motivation to achieve is impacted from day one. Statistics indicate that 50% of 15 to 25s are unemployed, and 29% of 25 to 34 year olds.   The ETI Bill aims at the 18 to 29 year olds who are believed to be around 30% of the total unemployed which is sitting at approximately 25%. The concept of introducing a subsidy for employers who take on young people is not a new one, but there has been significant resistance.   The draft bill was released in September, and the formal bill was published on November 4 th , 2013.   When is it happening? Treasury has set a “go l...