Are you comfortable?
With the constant changes in legislation around medical aid, retirement reforms etc. are you comfortable that your payroll is compliant and in line with best payroll practice? Will you survive a SARS audit?
Excelsiar can help you
By outsourcing your payroll you have access to specialists in the field that can help you navigate the legislative mine fields. We understand the intricacies of payroll management and the consequences of getting it wrong.
SARS Audit – you’re next
With the automation of income tax collection spurred by the release of eFiling and e@syFile SARS is now directing their attention elsewhere, the dreaded SARS audit. SARS does random and cyclical audits where every day, countless taxpayers receive their notice of pending audit.
SARS’ approach is based on a simple formula, they ask you questions and you must respond
Below are some of the questions they ask, get one wrong and SARS will be most delighted to invite themselves for a “cup of tea”.
- Are all payments made to your employees (in connection with services) processed through the payroll-system?
- Does the medical aid fund pay for any non-medical expenditure, such as gym fees or rewards programs?
- Are employees able to make ‘top-up’ payments to any fund, scheme or medical aid by way of salary sacrifices?
- Does any part of your remuneration structuring rely on ‘reimbursive’ payments or allowances?
- Please furnish a brief description of the manner in which individual employees’ motor vehicle allowances are calculated.
- Were any of the contractors previously employed by the company?
Did you know:
- All payments made to employees for services rendered must be processed via the payroll and declared to SARS, be it in cash or in kind for example: granting employees loans, long service awards etc.
- Any form of payment to an employee for using his/her vehicle for business purposes is potentially taxable and must be declared to SARS. Employees may claim tax against this payment by submitting a log book to SARS on their personal assessment.
- Any additional amounts paid by the employer on behalf of the employee towards non-medical aid expenses such as Vitality are deemed to be fringe benefits and may not be included as part of the medical aid on the tax certificate.
- Employees are eligible to receive a Vehicle allowance, ONLY if they use their private vehicle for business purposes. The value of this allowance is based on the determined value of the vehicle and the estimated kilometres travelled for the year.
- An individual that renders a service to you that is not an employee is not required to pay tax, unless they fail the SARS Common Law test, in which case they must be paid via the payroll at the normal SARS tax rates.