New Tax Calculator - Thursday, February 26, 2015
We have updated out Tax Calculator with the new tax rates as presented by Finance Minister Nhlanhla Nene on 25 February 2015, at 2pm.

Try the Free Online Tax Calculator today to see how the new budget affects your pocket! 
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Confidential payroll FAQs

Q: Who needs to register for PAYE / SDL / UIF, and why do I need to register?

Every business needs to register for PAYE if it employs staff (including management staff). An employee includes anyone that receives remuneration and acts under the direction of the company. This includes full-time and part-time staff, certain sub-contractors, directors, owners, partners and sole traders.

On the application for registration of PAYE / SDL / UIF the business has to indicate the Income Tax number of the business, registration number of the entity (if applicable), SETA code and the nature of the main activity of the business.

On registration of PAYE the UIF details need to be registered with the Department of Manpower.

The SETA code is used to accredit a business for the courses that its employees attended in the development of their skills. This applies to those businesses that have salary turnovers of R500 000 (or greater). These businesses pay over 1% SDL (Skills Development Levy) on their taxable salary turnover.

Payment of UIF is made on a monthly basis, directly to SARS, and reporting on staff matters is done to the Department of Manpower. The monthly UIF contribution consists of 1% by the company and 1% by the employee on defined salaries. For more information please visit our Payroll Registration page.

Q: When does a business need to register those unregistered employees for Income Tax (with SARS)?

If an employee earns less than R120 000 per annum, the employee does not need to submit an individual tax return to SARS. However, if the employee is below the threshold, SARS requires the employer to register the employee for income tax, in order to populate the EMP501 reconciliation with the information SARS requires in its new reporting program.

Q: How frequently must a business reconcile and report on its PAYE deductions?

SARS has changed the reconciliation system from an annual to a bi-annual submission (EMP501) for the 2011 tax year. However this will probably change in the future to a more frequent reporting system. The EMP501 reconciliation has to be submitted before the IRP5 certificates can be issued by the business to its staff.

SARS has implemented stringent requirements for the IRP5 certificates with high administrative penalties for each incorrect line item. Details such as addresses, tax numbers and bank details must be completed in full before this reconciliation can be submitted. SARS has abolished the manual submission of EMP501 reconciliations and implemented the PAYE software system.

Q: Who needs to register for Workmans Compensation Assurance (WCA)?

All businesses are required to register. The premium payable per year is calculated on the qualifying salaries and the nature of the business activities. Higher injury risk business (e.g. construction or mining) will pay higher premiums. For qualifying salaries and business categories, please click here .

The Return of Earnings (declared on a WaS 8 document) needs to be rendered by 31 March each year and is payable on assessment. The form distinguishes between earnings of normal employees and those of the business owners.

Q: Who needs to report to the Department of Labour on Employment Equity (EE) plans?

Designated employers need to report on designated groups.

Designated employers are those who employ 50 or more staff members or whose annual turnover is more than that set down in Schedule 4 of the Act (the figures vary according to the type of industry). Designated groups are blacks (Africans, Coloureds and Indians), women and people with disabilities.

Employers with more than 150 employees must report every year to the Department of Labour on employment equity progress by the first working day of October.

Employers with fewer than 150 employees must report every second year by the first working day of October.

Copies of the reports must also be displayed in the workplace.

The Department of Labour has put together a database of the employers it expects to receive reports from. Once the first reports are received the department will monitor whether employers are continuing to comply with the law. Those who do not will be given a written undertaking to comply.

The names of those employers who submit reports will appear in a public register. The Department of Labour will encourage government and other companies to do business with those on the register. This can also help a company to obtain government tenders.