“My employees don’t need an Income Tax number as they earn below the tax threshold and do not pay tax.”
This is a statement that we often hear in the payroll environment. The most recent SARS Business Requirements Specifications (BRS) however clearly states that an Income Tax number for EVERY employee is mandatory. This means that IRP 5 submissions to SARS are rejected if all employees do not have Income Tax numbers. Such rejections cause bottlenecks for us and that could result in the client’s IRP 5 disk not being accepted by the 31 May deadline.
A late submission carries a 10% penalty calculated on the total PAYE liability for the year. This would be a disaster for any company, particularly considering the fact that such Income Tax numbers could be obtained electronically by registered tax practitioners at a low cost. Using this approach will also mean that employees are not required to visit SARS to hand in manual applications, thereby saving time and effort and improving productivity.
HRTorQue Outsourcing can assist you with the registration of your employees for Income Tax purposes. We can manage the process from start to finish. Our consultant will obtain the employees personal information from your payroll administrator and do the necessary applications. The turnaround time for this process is 24 hours and the cost per application is R 240 plus VAT*. A volume discount of R 150 plus VAT per application will be applied to requests that involve more than 15 applications at a time.
Should you need assistance in this regard please do not hesitate to contact Dave Beattie on 031 582 7410 or [email protected].
*Prices valid as at 31 March 2019.