“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 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 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 can be obtained electronically by registered tax practitioners at a low cost. It also means 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, managing the process from start to finish. Our consultants will obtain the employee’s personal information from your payroll administrator and complete the necessary applications. The turnaround time for this process is 24 hours and the cost per application is R 150 plus VAT*. A volume discount will be negotiated in cases where there are more than 20 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 April 2023