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Not everything you hear about tax is true. There are many myths and misconceptions about payroll tax in South Africa that simply won’t go away. Let’s look at a few of them and what the tax and labour laws actually say. No matter whether your employer calls what it pays you a salary, overtime or commission, it is taxed at the same rate on the payroll according to the standard PAYE tax tables.
The threat of the COVID-19 pandemic resulted in a national lockdown in South Africa that commenced on 27 March 2020. This has brought about a significant change whereby many employees are now being required to work from home. The question now arises as to whether these employees will be entitled to claim any home office expenses incurred during the period that they are required to work from home.
There are regulations and rules that protect both employer and employee when it comes to costs, tools and behaviours, but these are being tested in entirely new ways with the 2020 pandemic. It’s a perfectly legitimate question for any employee to ask for financial support when they’re working from home, using their internet and electricity to do their jobs.
During August, many South Africans received auto-assessments for their 2019/20 personal income tax returns from SARS. The admin for the tax year is behind the taxpayers that accepted, or amended and submitted, this assessment and settled any tax still owing to SARS.
The COVID-19 pandemic has necessitated many employees to work remotely from their homes during the lockdown period. This in turn has meant that employees had to ensure that a space, or part of their home, was set up in such a manner that it was conducive for them to work from home effectively and productively.
January marks the start of both a new year and a fresh and exciting new decade with many more challenges and surprises in store. So, as we wrap up 2019 and prepare to set off into the roaring 20s, I found myself pausing to reflect on the key financial lessons that life has taught me thus far, offered here for the benefit of others walking their own financial journeys.
You, as the taxpayer, are responsible for declaring the correct information to SARS and will face the consequences if you don’t. Ensure that your tax practitioner declares all income by providing all the correct information to him or her.
KPMG in South Africa has launched a Learnership Incentive Tax Tool (LITT), an app that provides an additional tax deduction for registered learnerships. The objectives of this tax incentive are to encourage the creation of jobs by reducing the cost of hiring new employees, offering learnerships and to encourage skills development in the workplace.