January 28, 2013

Employees Tax Registration Services

1. Does the business or the employees register for PAYE/UIF?

The business is registered for PAYE/UIF. The PAYE/UIF registration number is registered in the business name and will stand until de-registered. The current employees are linked to this business registration number. It is the responsibility of the business to submit monthly declarations to declare the employees’ details, salaries etc. for that specific month before the 7th of the following month, e.g. February 2012 info must be submitted and paid over on/before 7 March 2012.

2. Does the member(s)/director(s) count as employees?

If the member(s) directors are actively involved in the business and receives a salary/ drawing from the business they must be added as employees.

3. I am trading as a sole proprietor? Do I still need to register?

Yes, as soon as you employ a worker who works for more than 24 hours per month you need to register your business with SARS for PAYE/UIF.

4. The business is already registered with SARS for PAYE and UIF. Do I still need to register with Department of Labour?

A business is registered automatically with Department of Labour as soon as PAYE/UIF registration is completed with SARS.

5. When must a business register for PAYE with SARS?

As soon as any employee/ member receive more than the monthly tax threshold. Currently at R 5 296.33 monthly (2013 tax year).

6. What deductions must be made?

For UIF 1% must be deducted from the employee’s gross salary and 1% must be contributed by the business. Therefore 2% in total. E.g. a worker received a R2 000 salary, R20 to be deducted from his/her salary and R20 to be contributed by the business and paid over to the UIF/SARS. Tax (PAYE) needs to be deducted according to each financial year’s tax tables from each employee earning more than the tax threshold and paid over to SARS.

7. How do I make payment to SARS for PAYE/UIF?

Payment must be made directly to SARS accompanied by the monthly declaration form (EMP201). Declaration form must also be submitted to the UIF regarding the UIF deductions.

8. Can you assist in the monthly declarations and payments?

Yes, we offer a monthly service where we issue electronic payslip to each employee, deduct necessary PAYE/UIF amount, submit the monthly declaration form and make payment from your nominated bank account. More information on our payroll services here.

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Before submitting the form below please read through the following information:

What is Pay as you Earn(PAYE) and Unemployment Insurance Fund (UIF) and who needs to register for it?

If you run a business and have employees earning more than the monthly tax threshold the business needs to register for PAYE. If all employees earn less than the tax threshold you still need to register for UIF. The tax threshold for the 2013 financial year is R63 556 annually or R5 296.33 monthly (amount where no tax needs to be deducted). If the business owner/member etc. draws a salary from the business he/she will also need to pay over PAYE and UIF except if the business is run as a sole proprietor.

1. How does it work?

Step 1 – fill in the form below
Step 2 – pay the R850 and fax/email us the proof of payment.
Step 3 – send through all info/documents, as required on this page, to us to finalize registration.

We do the rest. As soon as the business is registered for PAYE/UIF you will receive an email stating your PAYE/UIF number.

2. What is the turnaround time?

A PAYE and UIF registration takes on average 30 working days.

3. What happens afterwards?

As soon as your business is registered for PAYE and/or UIF, you wil have to deduct the correct amount of tax, based on SARS’s tax tables, from the employee as well as the correct UIF amounts. UIF deductions are calculated as 2% of the employee’s gross salary. 1% gets deducted from the employee’s gross salary and the employer also contributes 1%. This entire amount must be paid over to SARS before/on the 7th of each month. You will also need to submit a EMP201 form to SARS monthly. This will be for the month that has just passed, e.g. February’s tax and UIF deductions from salaries need to be paid over on the 7th of March. As a Calypso Accounting user you will be able to outsource your payroll to us at a very affordable price. Visit our Payroll Solutions section for more info in this regard

PAYE Recons must also be submitted to SARS every six months.

Additional forms/information that must be send to us after completing the form below:

  1. 2 x Original cancelled cheques or 2 x original letters from your banker stating the business’ banking details.
  2. In case of a company/trust/CC/partnership certified copies of the incorporation certificates as well as certified copies of the ID’s of the 2 most senior partners/members/directors/trustees.
  3. Recent copy of business municipal account AND recent copy of residential municipal account of individual, partner or representative employer. If there is no business municipal account available proof of the business address by ways of a lease agreement, sworn affidavit etc. must be provided.
  4. Download, complete and post the Declaration by Employer Form as well as the Power of Attorney form.

All these forms/info must be posted to us after you have completed the form below.
Please note: if your business gets registered for PAYE it will automatically be registered for UIF with Department of Labour.

Your business must be registered for income tax before you can apply to register for a PAYE number. To register your business for income tax click here.

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