EMP201 – Monthly PAYE UIF SDL – tax on employees’ salaries
Compulsory registration of any one employee including a director / member who earns more than the tax threshold. (for 2020 tax year R6583pm and more).
The amounts deducted or withheld by you, the employer, must be paid to SARS on a monthly basis by completing the EMP201.
You need to submit your EMP201 and the payment, if applicable, within 7 days after the end of each month, e.g. by the 7th of each month. If the 7th falls on a weekend or public holiday, you need to submit your EMP201 together with your payment, if applicable, by the last business day before the weekend or public holiday.
For a more complete look at different types of tax, check out this blog post
EMP501 Bi-Annual reconciliation
The tax year is from 1 March to 28 Feb.
The first period is 1 March to 31 Aug and the EMP501 recon is due by 31 October.
The second period is 1 March to 28 Feb and the EMP501 recon is due by 31 May.
This is a reconciliation of PAYE UIF and SDL paid compared to certificates issued to employees.
IRP5’s are tax certificates issued by employers to employees declaring their income and tax withheld (if applicable fringe benefits and deductions are also shown).
UIF – Unemployment Insurance Fund
Any employee working for more than 23 hours per month earning any form of salary UIF has to be deducted of 1% and the employer contributes 1% as well.
SDL – Skills development levy
When an employer pays salaries and wages of more than R500 000 within a year, they have to contribute 1% of the payroll to the skills development fund.
Workmen’s compensation
The year is 1 March to 28 Feb and the return is to be submitted by 31 May each year.
Every business that has employees are compelled to register. It is a fund to employees’ cover the injuries on duty.
VAT 201 Vat BI-Monthly
If your sales / turnover is greater than R1 000 000 within any 12 month period you have to register for VAT.
VAT payments are due by the 25th day of the first month commencing after the end of the tax period, for businesses who file their returns and make payments electronically.
For eFiling it is the last business day of the month after the end of the tax period.
You can read more about VAT here.
Company tax / Corporate tax – IT14
Every close corporation, has to submit an annual tax return within 12 months of their year end.
Very simply it is the company income / sales less the tax allowable expenses and allowances which gives you a profit. This profit is taxed.
Provisional tax IRP6
Every company has to submit a bi-annual provisional tax return.
This tax return simply is an educated estimate of the company’s profit every 6 months.
The first return is due 6 months before year end and the second return is due on the year end.
If provisional tax is over paid, SARS will refund you after you have submitted a final company tax return IT14.
If you under pay provisional tax you will pay in the difference and possible penalties once the final company tax return is submitted.
CIPC annual returns (the governing body that regulates and registers companies)
Every year on the anniversary of the company you have to submit an annual return to CIPC.
Failure to do so will ultimately lead to de-registration of your company.
It is a simple form basically asking you to confirm the contact details and information of your company.
Personal TAX IT12
The period is always 1 March to 28 Feb of each year.
SARS tax threshold: Am I exempt from filing a tax return?
Instead of requiring tax returns from everyone who earns R350 000 a year, that minimum figure has been increased to R500 000 a year. In monthly terms, the parameters have shifted from R29 166 to R41 666.
However, it’s not all plain sailing for those of us making less than half-a-million per annum. The new threshold laws only apply to citizens if they meet the following set of criteria:
- You must receive income from one employer only.
- You must have no other form of income, such as a car allowance, business income, no other form of taxable income, taxable interest income or money made from renting.
- You must have no additional deductible allowances, such as medical expenses, travel expenses or retirement annuities.
If you do not qualify for the above you will have to submit a tax return to SARS.
The return is an annual return that takes into account all of you income and allowable expenses and a tax on a sliding scale is then calculated
For those taxpayers who SARS qualifies as provisional tax payers, you will have to submit educated estimated taxable earnings by 31 Aug and 28 Feb of each year.
And again like corporate if you over pay you are refunded and if you have short paid you will pay in the difference plus the possibility of penalties for the underpayment.
There are many other returns like dividends tax and others however the above is a simple start to becoming compliant in running your business.
However it is best to speak to a qualified registered accountant who can guide you through this maze of requirements.
If you are looking for an accountant but don’t know where to start read our blog post on questions to ask your new accountant here.
