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.
Does your company have outstanding tax returns?
If you have not submitted your company’s tax returns in terms of tax, PAYE or VAT, contact us today. SARS has intensified their collection process, and is currently busy raising admin penalties for any outstanding returns. These admin penalties are up to R250 per month for every returns that has not been submitted. This can lead to a substantial amount that has to be paid to SARS. Business owners must also remember that they have to continue submitting returns as long as the company is registered, even if it is not trading.
EMP501 – 31 October deadline
All companies with a February year end have to submit a EMP501, also known as a PAYE recon before 31 October. This is mandatory for all companies who are PAYE registered. Contact us now to submit your EMP501. Or read more about our company.
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.
