Accounts-Rite Management and Training

27/05/2024

REMINDER:

EMP501/IRP5 SUBMISSIONS

This is your last week to submit your Employers’ Annual Reconciliation Declaration (EMP501) for the tax year Feb2024.

The deadline is the 31 May 2024.

Make sure you submit this on time to delay penalties.

15/05/2024

What is PAYE?

Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The process of deducting or withholding tax from remuneration as it is earned by an employee is commonly referred to as PAYE.

An employer who is registered or required to register with SARS for PAYE and/or Skills Development Levy (SDL) purposes, is also required to register with SARS for the payment of Unemployment Insurance Fund (UIF) contributions to SARS. You can register once for all different tax types using the client information system.

Who is it for?

The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer return (EMP201). The EMP201 is a payment return in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or Employment Tax Incentive (ETI), if applicable. A unique Payment Reference Number (PRN) will be pre-populated on the EMP201, and will be used to link the actual payment with the relevant EMP201 payment declaration.

How and when should it be paid?

It must be paid within seven days after the end of the month during which the amount was deducted. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.

15/05/2024

Reminder:

You have 13 More Working days until the deadline to submit your EMP501 IRP5s.
Make sure to get these submitted before the 31 May 2024 to Avoid Penalties.

15/05/2024

Payroll Laws and Updates

Payroll is a complicated and extremely important aspect of a business. Unfortunately, it is not something that remains constant. There are regular updates to existing legislation and new payroll laws that come into play. While this can be daunting, there are ways in which one can stay on top of these changes. In this article, we will discuss how one can remain compliant as well as what repercussions could occur if one is not compliant.

How to Stay Ahead of New Payroll Laws

There are constant updates that are made to legislation and laws regarding a variety of aspects of payroll. It is important to ensure that one stays up to date with these changes as a failure to comply with them can have negative repercussions on a business. There are a variety of ways that one can stay updated, including:

Sign Up For Emails: You can sign up to newsletters and emails that keep you updated on any upcoming changes and what the changes are once they have been implemented.

Keep An Eye Out for Speeches: It is important to keep an eye out for speeches on new legislation and changes to labour law, etc. It is advisable to make time to watch these speeches as they are made.

Attend Regular Seminars: While you might know about the new legislation and laws put in place, it is advisable to attend seminars where it is clearly laid out how these changes will affect the payroll process.

Use Comprehensive Payroll Software: The previous methods of staying updated are slightly outdated and will require a lot of time and effort. Another option one can consider is making use of a comprehensive payroll software system that will automatically update itself with any new legislation and requirements. While it is advisable to still remain informed, it will definitely save a lot of time and streamline the payroll process.

The Dangers of Non-Compliance

There are multiple dangers connected to non-compliance with legislation. Some of the most notable complications that could arise include but are not limited to:

Fines: Usually enacted upon smaller infractions such as being late with submissions and payments, a company can be fined for their non-compliance.

Sanctions: A company can be sanctioned if the infractions are serious enough. In such a situation certain penalties and limitations will be placed on the company until they are deemed cleared of their infractions.

Criminal Charges: If an exceptionally high level of non-compliance has been committed, then the company can be criminally charged. These charges will typically occur if the company has failed to comply with regulations regarding workplace safety, staff management, corporate governance, due diligence, and the like.

Other than the legal implications of non-compliance, a company also stands to lose their reputation and could even experience a loss of business opportunities or current business.

30/04/2024

Payroll taxes and the related declarations:
There are various compulsory declarations that need to be submitted and paid to ensure that a company complies with legislation.
EMP201
Pay As You Earn (PAYE)
Skills Development Levy (SDL)
Unemployment Insurance Fund Contributions (UIF)
EMP501
Return of Earnings (ROE)

29/04/2024

REMINDER:
Employer Annual Reconciliation period
The submission period for Employers’ Annual Reconciliation Declaration (EMP501) is 1 April to 31 May 2024.

Importantly, these reconciliation declarations (EMP501) must include the latest and most accurate payroll information regarding their employees, and the tax they have deducted covering the full tax year from 1 March 2023 to 28 February 2024.

The employer’s annual reconciliation must be submitted by 31 May 2024, so that employee’s auto-assessments and tax returns can be prepared accurately.

25/05/2023

A reminder that your annual reconciliation declarations (EMP501) submissions deadline is on the 31 May 2023. You have less than a week left to submit.

25/05/2023