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EMP501 Madness

Posted by on Jun 14, 2018 in Blog, Payroll | 0 comments

It’s EMP501 Madness – time for Mid-Year Employer Reconciliation Declarations It is that time of the year… and South African employers are reminded that Employer Reconciliation Declaration (or EMP501) have to be submitted to SARS. The EMP501 is important because it confirms or corrects the PAYE, SDL and UIF declarations as per the monthly EMP201 submitted, the payments made and the tax values of the Employee Tax Certificate and ETI, if applicable. The EMP501 submissions have two reporting periods, the interim period (which is for the transaction period 1 March to 31 August) and annual period (which is for the full tax year 1 March to 28/29 February). The interim reconciliation was introduced in September 2010 and has now become an integral part of the Employer Reconciliation. But why is this significant? The interim reconciliation process is intended to assist employers by: Enabling an easier and more accurate annual reconciliation submission; Maintaining an up-to-date employee database; Registering employees for Income Tax purposes, as required. Employers have until 31 October to submit their interim EMP501’s and until 31 May each year to submit their annual EMP501’s In addition to these important directives, employers should also be aware that Manually completed Payroll tax delivered or posted to a SARS branch, are no longer accepted. The only exception is for employers with a maximum of five IRP5/IT3(a)s. It is important to remember that: – SARS issues new validation rules before the start of each Employer Filing season and employers must ensure the they are always using the latest version of SARS e@syFile to ensure their submissions pass the current validations. Severe penalties and interest will be charged if the Reconciliation Declaration is not submitted before the deadline and if omitted and/or incomplete information is submitted. The reconciliation process is lengthy and time-consuming. With our knowledge and years of experience coupled with all the legislative amendments published throughout the year, CRS can save you precious time and costs by assisting you with this important part of your business as an...

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Tanzania’s Pension Bill signed into law

Posted by on Jun 1, 2018 in Africa Legislation, Blog | 0 comments

In as much as we are cognisant of the changes in South African labour law and feel passionate about the impact regulation has on business, we are just as acutely aware of changes to HR and labour law practices beyond South Africa’s borders… so, we want employers to be aware that Tanzania’s government had signed into law the Public Service Social Security Act, 2018, hereinafter referred to as the PSSS Act, which joins all pension funds into two major entities. The immediate implication is that the entire labour force in both the public and private sectors will be served by the Public Service Social Security Fund (PSSSF) and the National Social Security Fund (NSSF). What does this mean to business owners in Tanzania? Currently there are five social security funds in the country: the National Social Security Fund (NSSF), PPF Pension Fund, Public Service Pension Fund (PSPF), Local Authorities Pension Fund (LAPF) and Government Employees Provident Fund (GEPF). Because of the new PSSS Act, the Public Service Retirement Benefit Act Cap 371, the LAPF Pensions Fund Act Cap 407, the GEPF Retirement Benefits Fund Act Cap 51 and the PPF Pensions Fund Act Cap 372 will be repealed. It is important for employers to know that a member who changes employment from the public sector to employment in the private sector’s membership will be transferred to the National Social Security Fund, and all employees in the public sector who are members of the National Social Security Fund will be transferred to the PSSS Fund. The new Act has also introduced two new benefits which were not granted earlier by the Pension Funds. These are Survivor Benefits and Unemployment benefits. Survivors benefits would be paid to the Dependents of the deceased (widow, children or parents of the deceased). The Act also specified retirement age as 60 years for compulsory retirement and 55 years for voluntary retirement. Tanzania is gaining impetus as a progressive market that is slowly but surely working towards becoming a knowledge-based economy. Skills and labour are at the heart of this growth trajectory. We will continue to keep a close eye on developments in this exciting...

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Injury on duty compensation workshop

Posted by on Apr 24, 2018 in Blog, Human Resources Training, Latest News | 0 comments

We’re running an Injury on Duty Compensation workshop! The COIDA Return of Earnings (ROE) filing season deadline fast approaching, we’ve been inundated with calls for assistance with related calculations, claims, submissions and reporting… and so, we are proud to announce that we will run a morning workshop as a once-off skills transfer and information session on 11 May from 8.30am until 1pm. The workshop will take place at our offices in Rivonia, Johannesburg and Sharon Cloete has agreed to serve as facilitator. This is a unique opportunity for any HR practitioner, health compliance officer, HR manager, business owner or safety manager – in fact, most professionals who run or are impacted directly by HR compliance and operations – to get better acquainted with ROE and what the law (the Occupational Health and Safety Act) says about accidents and incidents in the workplace. This session will provide answers to mission-critical questions such as ‘what happens when there is a fatality?’,  ‘what are the legal requirements to complete the WCL2 form?’, ‘what happens once a claim is submitted?’ or ‘when will there be compensation and when not?’…. these are the type of questions we’ll be delving into and answering for you. Don’t miss this opportunity to be better informed through expert insight into compliance with this significant legislation, what the processes are and how you can better position your business to ensure continuity and responsible operations. The cost is R850 (incl. VAT) per delegate – a truly worthwhile investment! We look forward to hosting...

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2017 Taxation Laws Amendment Act

Posted by on Apr 10, 2018 in Blog, Tax laws legislation | 0 comments

As South African businesses face the challenge of a new year, it is important for business leaders to realise the implications of two new pieces of legislation: the Taxation Laws Amendment Bill (TLAB) 2017 and the Tax Administration Laws Amendment Bill (TALAB) 2017. The amendment proposed by this legislation has been published in the Government Gazette 41342 of 18 December 2017 and Government Gazette 41341 of the same date. This has paved the way for several significant changes to the Taxation Laws Amendment Act 17 of 2017, and it is critical that business leaders take note. Below is a list of these changes and their potential impact on business. Limitation of foreign employment income exemption: Tax residents outside of South Africa for more than 183 days as well as for a continuous period of longer than 60 days during a 12-month period rendering employment services, will now only be exempted up to the first R1 million of their employment income earned abroad. Any foreign employment income earned over and above this amount will be taxed in South Africa, applying the normal tax tables for that particular year of assessment. Increase of thresholds for exemption of employer provided bursaries to learners with disabilities: The need arises to clarify employer obligations to verify disability status of bursary holders, along with family connection and duty of ‘care and support’. Transferring retirement fund benefits after reaching normal retirement date: It was requested that the ability to transfer funds after the normal retirement date also be extended to pension and provident funds and to pension preservation and provident preservation funds, as well as retirement annuity funds. Dividends on employee share incentive schemes: The discussion surrounding the differentiation between an employee share holder and an individual that acquired shares was held. The request was partially accepted. The proposed wording will be changed to delete the proposal that the person by whom the dividend is distributed (a CSDP in the above comment) must deduct or withhold PAYE. One of the main changes in the Tax Administration Laws Amendment Act 13 of 2017 is: spread of PAYE cap on deductible retirement fund contributions over year (R350 000.00):  Consultation with the payroll software industry indicated that the application of the cap for PAYE purposes will take on a cumulative basis for the portion of the year of assessment that the employee receives remuneration from an employer. For example – if an employee is employed by an employer for seven months during 2018/19 tax year a cumulative deduction limitation of R204 166.67 will apply in the seventh month. There are a lot of decisions to take in and consider and a great deal for business to deal with by...

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COIDA, Return of Earnings – CRS can help

Posted by on Mar 14, 2018 in Blog | 0 comments

South African employers will by now be cognisant of the fact that the Compensation for Occupational Injuries and Diseases (COID) Act replaces the Workmen’s Compensation Act, and they have to register with the Compensation Commissioner. The legislation covers compensation for disablement caused by occupational injuries, diseases sustained or contracted by employees in the course of their employment, and for death resulting from injuries and diseases. The benefits are paid from the Compensation Fund, which gets its money from compulsory contributions. As part of registering for COID an employer is required to submit the annual Return of Earnings (ROE) form whereupon the employer will pay and annual assessment fee. The annual assessment fee of an employer is based on their employee’s earnings and the risks associated with the type of work or profession. The RMA (Rand Mutual Assurance) COID ROE filing season deadline is 31 March 2018. The COIDA ROE filing season deadline has been extended to 31 May 2018. The online Compensation Fund (CF) filing system will be open for submission from 1 April 2018 to 31 May 2018. These are important dates to remember and like all HR and payroll related legislation, processes, checks and balances can be tricky to manage. We can assist you with the successful assessment and submission of your ROE. We have the expertise to assist you to better understand the legislation and the impact on your business, to advise you on the best practice process to comply, to submit your ROE to the Department of Labour or the RMA, as well as increase compliance with legislation and reduce the risk of non-compliance. Severe penalties can be imposed for non-compliance and criminal proceedings will be instituted for misrepresentation of facts. Email us today at info@crs.co.za to schedule a conversation and let us guide you through the...

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Budget speech 2018

Posted by on Mar 7, 2018 in Blog, SA Budget Speech | 0 comments

A glance over the most salient points raised in South Africa’s Minister of Finance Malusi Gigaba’s 2018/2019 budget speech and it is obvious that we should expect a tough fiscal year ahead. This year’s budget speech has made headlines because the VAT rate has been increased from 14% to 15%, with personal income tax expected to generate R505.8 billion, VAT R348 billion and company tax R231 billion in the 2018/2019 financial year. It is important to recognise that some relief will be provided for lower income individuals through an increase in the bottom three personal income tax brackets and the rebates. From an employer’s point of view, the budget has several implications for payroll administration. Primarily, tax rates governing individuals and special trusts from 1 March 2018 to 28 February 2019 have been adjusted. For example, those with a taxable income of 0 – 195 850 will pay 18% of taxable income. At the opposite end of the spectrum, those who earn 1,500 0001 and above will pay 532 041 + 45% of taxable income above 1500 000. There are also various changes to tax rebates and thresholds to consider. To highlight, a primary rebate is positioned at R14 067, while secondary (persons 65 and older) is R7 713, and tertiary (persons 75 and older) is R2 574. The tax threshold for those below the age of 65 is R78 150, those aged 65 to below 75 is R121 000, and for those aged 75 and over it is R135 300. CRS Technologies has released a tax pocket guide for 2018-2019 as a quick and easy tax reference to assist clients. But, as with most legislation that will influence business operations going forward, it is always best to engage with us directly. We have experts on hand to offer advice. Contact our legislation team at info@crs.co.za for more...

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