Once an employee exceeds income of R17 712 per month, they will not contribute more than R177.12.
Where employees’ salaries are above the set thresholds, currently this is R91 250, if you are younger than 65 years.
If you are 65 to below 75 years old, the tax threshold (i.e. the amount above which income tax becomes payable) is R141 250.
Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable.
An employer who is registered or required to register with SARS for PAYE will also be required to register and pay over the Unemployment Insurance Fund (UIF) contributions and may have to pay over Skills Development Levy (SDL) and to SARS.
Make sure you register with SARS within 21 business days after becoming an employer, deduct PAYE and UIF from your employees’ salaries or wages and pay it over to SARS on a monthly basis.
These payments must be made within seven (7) days after the end of the month.
Where an employer expects that the total salaries will be more than R500 000 over the next 12 months, that employer becomes liable to pay SDL.
Yes, they can, but certain procedures and processes have to be followed.