Find out, if, when and what rates of income tax apply.
As an employer it is your responsibility to ensure your employee/s have provided you with their Income Tax reference number, which confirms they are registered as tax payers with SARS. If they are not, you can easily register them on the SARS eFiling system.
Payroll is an important monthly task for any employer. There are varying circumstances that arise where employees need to be paid extras. Even if these do not happen every month, they require the correct tax (PAYE) treatment.
You can structure the salaries of your employees to include items like medical aid and company pension fund contributions. A travel allowance may also be included but is dependent on the employee’s job description.
Every employee must receive a weekly or monthly payslip which shows details of their gross salary or wages, and pay-as- you-earn (PAYE) and unemployment insurance fund (UIF) deductions. The payslip must include the employee’s full name, identity number, address, income tax number, job description, and annual leave available.
Every employee must also be provided with an annual IRP5 income tax certificate.