HRTorQue Outsourcing
HRTorQue Reporter
November 2017
 
HRTorQue Reporter Archive
Table of Contents
1. SARS Text Reminders to Pay your Tax
2. UIF as Applied to Learners
3. ETI - Claiming when ETI was not claimed in the month itself.
4. Affirmative Action and Employment Equity
5. Alcohol in the Workplace
6. Contact HRTorQue

Should you require any further detail on any of these topics, please feel free to contact us.
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1. SARS Text Reminders - Pay your Tax
Author: Jonathan Aitken / Dave Beattie
In early November, shortly after the 31 October mid-year employer filing season SARS "mistakenly" sent out thousands of text messages to individual taxpayers telling them their accounts were in arrears and they needed to act now to prevent legal action.

A very successful tactic I should imagine as there is little doubt this triggered many individuals to pay their taxes well before their due date. As a result, I would not be surprised if this "mistake" becomes a more regular practice.

Timing of payment of personal taxes:

The Income Tax Administration Act provides the following deadline for paying one's personal taxes:

The taxpayer has until the 'Second Date' on their annual tax assessment to pay any Assessed Tax liability raised by SARS. After this date SARS will levy interest at a rate of 10.5% per annum until the liability is settled.

Taxpayers are usually granted a period of at least six weeks in those cases where assessments are finalised before the 15th of the month in which to pay the assessed tax due. Where assessments are finalised after the 15th of the month, taxpayers are usually given until the end of the second month, that is, a period of up to 10 weeks within which to pay the tax due.

In the majority of the cases where SARS has issued the above-mentioned text messages, the Second Dates are only 31 January 2018. Taxpayers are therefore within their rights to hold on to their money until 31 January 2018 without fear of interest being raised.
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2. UIF - As Applied to Learners
Author: Dave Beattie
For a couple of years the Department of Labour has been talking about changes to the benefits to be provided to qualifying employees. These proposed changes have been widely published and discussed in payroll forums and at seminars.

The changes to the Unemployment Insurance Act, signed into law on 19 January 2017, have yet to be made effective. This Act deals with the payment of benefits, with changes to the 'application' of the Unemployment Insurance Act being introduced. Indications are the effective date will be 1 March 2018, but this remains to be seen.

The 2017 Bills make related changes to the 'application' of the Unemployment Insurance Contributions Act, which deals with contributions.

For both Acts, the provisions that excludes learners in terms of the Skills Development Act from contributing and being eligible to claim benefits, have been deleted. Once effective, the result of these changes is that all learners must contribute, and consequently be eligible to claim benefits.

Note however that both Unemployment Insurance Acts define an employee as per the Fourth Schedule of the Income Tax Act and exclude common law independent contractors, even if paid deemed remuneration (income reflected against IRP 5 code - 3616). The Fourth Schedule also defines the remuneration on which the contribution must be calculated, with some special exclusions. In my understanding, these exclusions do not apply to the learnership situation, and all learners will have to contribute.

To conclude, all learners will have to contribute, unless they are not an employee as defined, and contributions must be made unless the remuneration value is zero.
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3. Employment Tax Incentive
Author: Jonathan Aitken
Employment Tax Incentive - Claiming when not reported in a specific month.
 
The Income Tax Act allows employers to claim Employment Tax Incentive (ETI) until the end of each six-month cycle. As each six-month cycle ends with the EMP501 employer reconciliation process it seems obvious employers should be able to claim ETI up until their EMP501 is submitted. Not so according to the e@syfile software.

Assuming an employer has not submitted an ETI claim on the EMP201 for a particular month the obvious ways to claim during the six-month cycle would be to either add the additional valid claim on to the EMP501 or to amend the EMP201 for the month where the ETI should have been claimed (had all info been available at the time).

1.    Adding to the EMP501 - when one tries to do this e@syfile records an error stating that one cannot claim ETI on an EMP501 that is not reflected on the EMP201;
2. Amending the EMP201 - e@syfile no longer allows the amendment of the EMP201 for ETI claims when the filing period to which it relates is finished.

E@syfile therefore prevents one from claiming the ETI within the six-month cycle. The best solution we understand is to use the Automated PAYE Dispute Management Process, but this is still to be tested fully.
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4. Affirmative Action and Employment Equity
Author: Melany Bydawell (archives)
Editor's Note: we know some employers prefer to do their own employment equity reporting. To this end we have designed a DIY pack to help employers which includes checklists, notifications, nomination forms and communication plans and examples.

In terms of Employment Equity Act, 55 of 1998, issued in terms of Section 25(1) - Duties of a Designated Employer: Section 13

a.   A designated employer must implement affirmative action measures for designated groups to achieve employment equity.
b. In order to implement affirmative action measures, a designated employer must:
•  Consult with employees; and
•  Conduct an analysis

Affirmative Action measures: Section 15 states that:
 
a.   Affirmative action measures are measures intended to ensure that suitably qualified employees from designated groups have equal employment opportunity and are equitably represented in all occupational categories and levels of the workforce.
b. Such measures must include:
 
•   Identification and elimination of barriers with an adverse impact on designated groups
Measures that promote diversity
Making reasonable accommodation for people from designated groups
Retention, development and training of designated groups (including skills development)
Preferential treatment and numerical goals to ensure equitable representation. This excludes quotas.

Consultation: Sections 16 and 17 states:

A designated employer must take reasonable steps to consult with representatives of employees reflecting the diverse interests of the workforce. The analysis undertaken should include employees from across all occupational categories and levels of the employer's workforce (from designated groups and employees who are not from designated groups).

Analysis: Section 19

A designated employer must conduct an analysis of employment policies, practices, procedures, and the working environment in order to identify employment barriers that adversely affect members of designated groups.
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5. Alcohol in the Workplace
Author: Melany Bydawell (archives)
The year is coming to an end and with this comes the celebrations and functions that are either held at the employer's premises or off site. Either way the question often arises as to what, if any, the employer's obligations are when providing alcohol at these functions.

In terms of the OHS Act General Safety Regulation 2A. Intoxication.
 
1.   An employer or a user, as the case may be, shall not permit any person who is or who appears to be under the influence of intoxicating liquor or drugs, to enter or remain at a workplace.
2. No person at a workplace shall be under the influence of or have in his or her possession or partake of or offer any other person intoxicating liquor or drugs.

Employee 'intoxication' is a major concern and you will note that the OHS Act has placed upon employers the duty of prohibiting persons to enter or remain at a workplace who appear to be under the influence of intoxicating liquor or drugs.

These restrictions, together with COIDA and the implications of a possible injury on duty, have legal implications for employers and you should ensure that not only is it vital that these provisions be communicated to all employees, but that you keep a record of these communications. Employers should be in a position to demonstrate that they have made an effort to try and manage employees' conduct around alcohol consumption, or preventing them from driving when over the legal limit or in an intoxicated state during these functions.

At social functions on the employer's premises, the employer should ensure that employees have 'signed off duty' prior to commencement of the function. This will avoid any possible claims of 'injuries on duty', and consider the following steps to reduce possible liability:

•   Advise employees regarding the desired behaviour during work functions. This could include the employer limiting the number of drinks for the duration of the function.
Providing access to breathalyser tests.
Place a disclaimer in the area or pub.

Whilst year-end functions should be occasions to unwind and relax with colleagues outside of the normal working environment, both employers and employees still have certain responsibilities around their conduct, and would be expected to consider that both interests are not negatively affected.
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6. Contact HRTorQue
Durban
Phone: 031 564 1155  •  Email: [email protected]  •  Website: www.hrtorque.co.za
Address: 163 Umhlanga Rocks Drive, Durban North, KwaZulu-Natal

Johannesburg
Ground Floor, West Wing, 6 Kikuyu Road, Sunninghill, 2191
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