PAYE

PAYE information

  • PAYE,  SARS

    PAYE recon – 202202

    The deadline to submit your PAYE recon, aslso known as the EMP501 is 31 May 2022. What is a PAYE recon? This is the process where the amount of PAYE deducted monthly and paid over to SARS is reconciled. This is to ensure that all the amounts deducted from employees is paid over to SARS. During this process, when the EMP501 is submitted, IRP5 certificates have to be issued for every employee. These certificates then have to be issued to every employee. What information does the IRP5 certificate need to contain? The certificate needs to contain all income the employee has received. This includes the salary, all other benefits and…

  • PAYE,  Tax

    Why do I have to pay income tax at year end if I have more than one income?

    I get asked this question quite a lot. If you have more than one income stream during a financial year, the chances are very good that you will need to pay in on your annual income tax return. Income tax returns SARS has written a practice note which explains this very good, and one of the best practice notes they have written. Please see the SARS website to read this note. This will give you more insight on how PAYE is calculated, and how it is influenced when a taxpayer have more than one income. Contact us for more info.

  • PAYE

    PAYE recons 2021

    Employers have to submit their annual PAYE recons, also known as the EMP501 before 31 May 2021. This applies to all employers who This is applicable to all employers who are registered for PAYE and deduct employee tax from their employees on a monthly basis. After the recon is submitted, IRP5 certificates will be generated for all employees. These certificates have to be handed over to the employees in order for them to submit their annual income tax return to SARS. Failure to submit the PAYE recon will result in a penalty of 1% of the annual PAYE liability of the company. Contact us for more detail.

  • tax compliance
    PAYE,  Tax

    Registered a company, whats next?

    A lot of people are currently starting companies at the moment due to job losses and seeking alternative income. Unfortunately, these business owners are never advised on what steps to take next i.t.o staying compliant at SARS and other state institutions. Below is a bit of a break down of what needs to be done and which returns need to be submitted. Bank account The first thing you should do is open a bank account for the business. Without one, you will not be able to register for any tax types, or register on the central supplier database. Tax returns The company will be liable for tax from the day…

  • PAYE

    PAYE recons explained.

    Monthly PAYE returns The monthly PAYE return is called a EMP201. The following amounts are to completed on this return, namely PAYE, SDL and UIF. The amounts are the amounts that are deducted from employees’ salaries. The SARS PAYE tables can be seen here. A 10% penalty is raised by SARS for the late submission of this recon. SDL SDL, or skills development levy is payable when the company’s total payroll exceeds R500 000 per annum. The amount to be contributed is 1% of the employees salary. This amount is contributed by the employer and not deducted from the salary. UIF UIF is dedcuted at 1% from the employees salary.…

  • PAYE

    When to deduct PAYE for employees

    Have you ever wondered when to start deducting PAYE for your employees? The answer is quite simple. SARS makes use of PAYE tables to determine from which amount and how much PAYE should be deducted. The current amount, from 1 March 2020 is R7 479. This means, that when you have an employee that receives R7 479 or more per month in salaries, the company should register for and deduct PAYE. This amount is then paid over to SARS on a monthly basis. This also means that the employee should be provided with an IRP5 every year. PAYE tables Click here to get a copy of the SARS PAYE tables.

  • emp501
    PAYE

    EMP501 – PAYE recon

    The deadline to submit the first PAYE recons for the 2021 financial year is 31 October 2020. The EMP501 is where employers have to reconcile the employee tax they deducted from employees to the amounts that were paid over to SARS. With this PAYE recon, IRP5’s are generated, but not handed over to the employees. Contact us for more information.