Xero Accounting Gold Champion Partner
We hope you enjoy reading the blog post.
If you want our team to do your accounting or tax for you click here.

Beware These Four Statutory Deduction Pitfalls On Your Payroll

Pitfalls On Your Payroll

When a business acts as an employer, there are certain statutory requirements that the business will have to adhere to.
Some of these requirements include compulsory registrations with certain governmental departments.

These registrations would include:

All employees who have a green bar-coded Identity Document – the green ID book – must be registered with the Department of Labour for UIF.

Employees with these green ID books will be able to claim the benefits under the unemployment scheme that is, for: unemployment, maternity, adoption, and long-term illness.

However, non-nationals who are in South Africa legally, with other forms of documentation and/or work permits should not be contributing to the Unemployment Insurance Fund, because they will not be able to benefit from the fund.

Employers nowadays find themselves in a position where their staff complement is made up of both local SA residents as well as foreign nationals. This results in different figures having to be reported to the different authorities such as their monthly payments to SARS, and their reporting figures for Employment Equity and Skills Development, although based on the same set of payroll data for that month.

These numbers will not all correspond and will require qualification and definition, and employers are advised to ensure that their employee records are accurate and up to date.

Examples of the different reports are:

When completing the monthly EMP201 payment to SARS,

• Income tax will be deducted from all employees according to the tax schedules and additionally any consultants who do not meet the independent contractor test,

• UIF will be deducted only from South African nationals, and not from employees who have other forms of documentation to work in South Africa,

• SDL (skills development levy) is calculated at 1% for South African nationals, and 2% for non-nationals (those without green barcoded IDs).

Our understanding is that registration for Workmen’s Compensation in terms of COIDA, all employees should be registered.

It can be clearly deduced that your payroll system should make provision for all these different scenarios and allow you to easily report to the different stakeholders.

Facebook
Twitter
LinkedIn
WhatsApp
Ready to take your financial success to new heights?
How would it feel to have peace of mind knowing that your finances are in the hands of experienced professionals who are passionate about helping you maximise your financial potential?
Ready to experience the difference? Contact us today for a complimentary consultation and discover how our tailored accounting solutions can empower your financial future.
What our clients say?
Thrive CFO
5.0
Based on 10 reviews
powered by Google
Martin Mulder
Martin Mulder
12:36 17 Aug 23
I have only the greatest appreciation for this company. I was going through a difficult time and they were understanding and accommodating. My tax was handled speedily and efficiently.
Kevin Rademeyer
Kevin Rademeyer
07:20 17 Aug 23
We have been using Melissa, Marche and the rest of the crew at ThriveCFO for over 10 years, in order to compile our annual audit for Law Society. They have been exceptional, efficient and pro-active every year. I would not take the business anywhere else.
Jan de Wit
Jan de Wit
13:13 13 Jun 23
Our firm has been making use of the services of Thrive CFO for more than 10 years. Thrive CFO has amazing staff that is not only extremely helpful, but also very capable. We are extremely happy with their services and will continue to support them. They make accounting easy. Thanks Melissa, Marche and the rest of the Team - You Rock!!
LM Keyser
LM Keyser
07:13 13 Jun 23
The ThriveCFO team has been our trusted accounting and tax partner since 2010. They are competent, honest, approachable, quick to respond, and they really do care. I highly recommend them.
Andre Claassen
Andre Claassen
10:24 08 Jun 23
Prompt, professional and personal service!!
Palabadi Ramaphoko
Palabadi Ramaphoko
19:38 15 May 23
I'm impressed with the work you do. You are extremely professional and polite. I hope we will grow big together!
Deidre Oosthuysen
Deidre Oosthuysen
12:20 04 May 23
I feel as though Thrive CFO is a natural part of our business. 100% professional. Very knowledgeable. Incredibly organised. And with a work ethic and proactive communication practices, I know I am in the very best hands possible.
Sean Fabian
Sean Fabian
07:45 04 May 23
As someone who has had the pleasure of working with Thrive CFO, I can confidently say that they are an exceptional company with an unwavering dedication to their clients. From beginning to end, their commitment to providing top-tier financial services is evident in every interaction.One of the things that sets Thrive CFO apart is their focus on education. They take the time to educate their clients on financial best practices and help them understand the reasoning behind their recommendations. This approach ensures that clients are empowered to make informed decisions about their finances.Thrive CFO also uses the latest technology to streamline their services and make the financial management process as efficient as possible. They utilize cloud-based software to provide real-time financial data and make it easy for clients to access their financial information at any time.Overall, Thrive CFO is an exceptional company that is dedicated to providing personalised financial solutions that help their clients succeed. If you're looking for a financial firm that truly cares about your success, I highly recommend Thrive CFO.
Michael Dawson
Michael Dawson
15:48 02 May 23
Great experience with the team! Always willing to assist with questions and able to help guide my small business to ensure that I am compliant.
Riaan Schlebusch ITMC
Riaan Schlebusch ITMC
12:15 21 Apr 23
Professional, smart and friendly people.You only deal with the best of the best, and they know how to answer your questions, and they ensure that they understand you, and make they make sure to take the time to know your business.
See All Reviews
js_loader

Ready To Take Your Financial Success To New Heights?

Scroll to Top