Along with all the other responsibilities associated with tax management in South Africa, businesses are reminded of their PAYE (Pay as you Earn) obligations towards SARS – including the onus to issue IRP5 tax certificates to employees.
This is according to HR and tax legislation specialists at leading Human Capital Management and HR solutions services provider CRS Technologies.
Sandra Maritz, head of Legislation, says local companies have to understand and appreciate that there are serious repercussions for companies that don’t adhere to South Africa’s tax regulations.
“In order for SARS to assess the total tax liability due from an individual, they need to be informed of the accumulated income which the individual has received during a particular period, as well as the amount of the allowable deductions for this same period,” says Maritz.
“Generally employees are not informed of whether employers actually pay over the PAYE deducted from their remuneration to SARS. The reconciliation process is a way of determining that the PAYE deducted was actually paid to SARS,” she continues.
Maritz notes that the fourth schedule of the Income Tax Act obliges an employer to deduct or withhold PAYE from remuneration and then to pay the amounts so deducted over to SARS within seven days after month end.
CRS Technologies advises that the process is quite complex and there is pressure on payroll practitioners to apply their skills, knowledge and experience to enforce PAYE regulations to employees’ earnings and deductions.
The company says that PAYE regulations and specifications are set up according to the Income Tax Act and is extremely complex.
“…. (it) is a challenge to interpret correctly. The safest way to handle this is to entrust the tax year end obligations to a competent and professional payroll solutions & services company,” says Maritz.
South Africa’s detailed and complex tax legislation system demands a proactive approach by businesses.
CRS Technologies urges local businesses to contact the company, find out more information about their tax position and how CRS can help…
Contact the company at [email protected] today!
About CRS HR & Payroll Solutions
CRS HR & Payroll Solutions is a provider of services and solutions to the Human Resources and Payroll markets in Africa in general and South Africa in particular.
Established in 1985, the company has served as the premier provider of HR systems, solutions and remuneration products to business across expanding market segments.
Our product portfolio encompasses everything the decision maker in business requires to support the rollout of an effective HR and payroll strategy.
The company’s foremost reputation as a reliable service provider and trader in rapidly expanding market segments and to blue chip companies is underpinned by its affiliation and partnership with a number of respected, industry-regulatory bodies.
CRS is a signatory to the Information Technology Association (ITA) and a member of the Payroll Authors Group of South Africa.
It is also a member of the South African Payroll Association, South African Rewards Association and the Institute of People Management.
Its expertise and business acumen within these mission-critical aspects of business management have ensured that it remains an ultra-competitive, secure and unrivalled market performer.
CRS provides a service to numerous countries throughout Africa, including Egypt, Kenya, Nigeria, Namibia, Botswana, Swaziland, Lesotho and Mozambique.
The continent is viewed as being a thriving, high-growth market and one that the company will continue to add value to.
CRS Technologies contact:
Sales & Marketing
T: +27 11 259 4700
C: +27 83 777 8864
F: +27 11 259 4750