Betty Bookkeeper explains how to calculate PAYE on commission earners – December 2014

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Hi Betty 

I would like to know how PAYE is calculated when an employee works on commission only? He received R9,000 and a medical benefit of R900 from the employer.

Please help!

Regards,
Linda

 

Hi Linda

PAYE on commission earners is calculated in the same way as for ordinary salary earners, unless the commission earner has a tax directive – a document from SARS that dictates the fixed rate at which it should be withheld on earnings. Therefore, your commission earner would have the following PAYE withheld:

(R 9,000 + R 900) x 12 = R118,800
R 118,800 x 18% (as per marginal tax rate tables) = R 21,384
Tax less rebates (assuming the commission earner is under 65 and the sole member of the medical aid) = R 21,384 – R 12,726 – R 257 = R 8,401
Monthly PAYE = R 8,401 / 12 = R 700.08

Hope that helps!

 

Don’t forget that I’m here to answer your questions about the ICBA, or just queries about your accounting at work. All you have to do is email me!

 

South Africa shows tax compliance improvement

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Article source: Tax-News 

On December 4, while reviewing the preliminary outcome of the 2014 tax season, the South African Revenue Service (SARS) confirmed that there has again been consistent growth recorded in the levels of tax compliance in the country, with a total of 5.32 million income tax returns submitted.

It noted that 4.05 million taxpayers (almost 95%) who were required to submit a tax return this year, did so on time. This is more than 10 percent higher than the 3.69 million returns submitted in 2013.

The total of returns submitted in 2014 (including over 1 million of outstanding returns from previous years) is marginally lower than the 6.09 million total for 2013, but the decrease has been put down to the introduction of a higher submission threshold since the 2013 tax year.

In 2014, the new threshold means that taxpayers earning one source of income below R250,000 for the year, from one employer and with no refund claims, do not have to submit a tax return, although they still contribute to personal income tax through, for example, monthly PAYE deductions by their employers.

In addition, in 2014, 99.9% of returns were submitted electronically, and nearly 95% were assessed within 3 seconds. In addition, tax refunds of R15.2bn were paid to 2.1 million taxpayers and SARS paid 98% of all those refunds within 72 hours.

Of the 1.02 million outstanding returns received from previous years, defaulting taxpayers paid SARS a total of R436m in outstanding penalties.

 

BizFacility workshops: Basic Payroll Procedures – Feb/Mar 2015

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This one-day workshop will help you or your staff understand how to construct and process the payroll effectively within an accounting environment, and fulfill the payroll returns and functions within a business.

You will be able to recognise and understand how to integrate payroll within a business, that complies with relevant legislation.

The workshop is designed to give business owners, managers, professionals, bookkeepers, administrative and payroll staff a comprehensive understanding of completing the payroll function from a bookkeeping perspective.

What will be covered

  • Payroll terminology and definitions to give you a better understanding of how to structure your payroll.
  • Gross income and allowances.
  • Fringe benefits.
  • Deductions
  • S10 exemptions.
  • eFiling (specifically how to complete and submit the EMP201 and EMP501 to SARS).

Cost

  • R 1,750.00 per delegate

When and where

  • Midrand, Johannesburg – 12 February 2015
  • Durban, KZN – 5 March 2015
  • Tygervalley, Cape Town – 18 March

Submit this booking form, along with proof of payment to Gary Garbutt at gary[at]bizfacility.co.za.

 

SAAA webinar series: How to get more clients for your practice in 2015 – Jan/Feb/Mar 2015

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In order to get your business on the right track for 2015, SAAA is offering a series of three webinars early next year – focusing on online marketing and converting leads into customers.

1. How to get more clients for your practice in 2015

In today’s day and age, it is vital for any business to have an online presence and accountants are no exception. In this two-hour webinar, you will be shown how to create a system to automatically get new clients every single month on auto-pilot.

2. How to unlock the goldmine sitting in your email (client) list

Most accountants don’t understand the goldmine that they are sitting on inherent in their client email list. In this two-hour webinar, you will learn how to get your emails delivered, opened and read, how to make money every time you send out an email, how to use email marketing to get prospects to convert into paying customers and much more.

3. Getting leads and customers from LinkedIn

If you are not on LinkedIn, you are losing out on growing your professional practice! In this two-hour webinar you will learn how to create a “marketing” profile that will get you leads and new clients, how to build a large powerful and targeted network in the shortest time possible, how to create an effective company page for maximum exposure plus many more tips and techniques.

All webinars will be run by James Molfetas, CEO of Infinite Sales Funnels. James is a chartered accountant and has spent most of his life in the financial world as a financial director in private and listed companies, and also spent 10 years as an audit partner. He has been able to combine his entrepreneurial flair with his accounting, auditing and consulting background by specialising in creating high converting sales funnels for different types of business owners.

Book for all three webinars and get a discount of up to R200.

 

BizFacility December specials: Accounting and taxation self-study material

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Accounting and taxation training specialists, BizFacility offers a wide range of self-study material – complied by accounting and financial professionals. They also offer comprehensive video presented e-learning courses, with detailed notes and practical tools to assist you or your staff to understand the financial management of a business.

Please note that all self-study options contribute to Continuing Professional Development (CPD) points. The following special offers are valid for December 2014 only:

Video presented e-learning courses

1. Understanding how to read financial statements

  • Usually R 1,083.00
  • December special = R 760.00

2. Analyse financial statements using ratio analysis

  • Usually R 1,083.00
  • December special = R 760.00

3. Managing sales to cash profitably

  • Usually R 969.00
  • December special = R 680.00

4. Business valuation: How to value a business

  • Usually R 1,083.00
  • December special = R 760.00

5. Understanding your personal tax

  • Usually R 969.00
  • December special = R 680.00

Included in the above e-learning courses:

  • Easy to follow video modules by an experienced accountant.
  • Comprehensive downloadable notes for each module of each course.
  • Powerful business health analyser workbook, taxation calculator as well as powerful business valuation calculator.
  • Online self-tests and assignments.
  • Technical support for online queries by Bridgewater Learning – leaders in e-learning delivery.
  • Email support for all content queries.
  • Content available as a reference.
  • Certificate of completion of each course issued.
  • Continuing Professional Development (CPD) hours.

To order any of the video presented e-learning courses, submit this order form with your proof of payment to Gary Garbutt – gary[at]bizfacility.co.za.

Self-study notes only

1. Introduction to basic business accounting

  • Usually R 741.00
  • December special = R 520.00

2. How to read and understand financial statements

  • Usually R 855.00
  • December special = R 600.00

3. Analyse financial statements using ratio analysis

  • Usually R 855.00
  • December special = R 600.00

4. Measuring sales to cash profitably

  • Usually R 627.00
  • December special = R 440.00

5. Business valuation: How to value a business

  • Usually R 855.00
  • December special = R 600.00

6. Understanding VAT for business

  • Usually R 741.00
  • December special = R 520.00

7. Business and personal taxes explained

  • Usually R 627.00
  • December special = R 440.00

8. Understanding basic payroll and taxes on payroll

  • Usually R 741.00
  • December special = R 520.00

9. Understanding wills, trusts and estate duty

  • Usually R 741.00
  • December special = R 520.00

10. Trend investing analysis for stock market shares

  • Usually R 741.00
  • December special = R 520.00

To order any of the self-study notes, submit this order form with your proof of payment to Gary Garbutt – gary[at]bizfacility.co.za.

 

SAIT seminar: 2015 Annual National Budget Breakfast – 26 Feb 2015

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Overview 

The South African Institute of Tax Practitioners and the International Financial Planning Standards Board have joined forces to host the 2015 Annual National Budget Breakfast.

The National Budget will be analysed, with focus on the following areas:

  • Tax
  • Economic environment
  • Socio-economic environment
  • Political environment

Analysis by the speakers will be followed by a panel discussion, where delegates can direct questions to the panel on the related topics.

The panel

  • Mike Schussler
  • Judge Dennis Davis
  • Keith Engel
  • Ronald King
  • Thami Mazwai
  • Xolani Qubeka
  • Steven Friedman

Who should attend

  • Accountants
  • Auditors
  • Financial planners
  • Lawyers
  • Tax Practitioners
  • Business owners

Cost

  • R 5,000 per table (10 seats)

When and where

All seminars will run from 07h00 to 11h00 on 26 February 2015. Breakfast will be served between 07h00 and 08h00.

  • Johannesburg
  • Durban
  • Bloemfontein
  • Cape Town
  • Port Elizabeth
  • Pretoria

Click here to register for this event.

 

 

Sage VIP Seminar: 2015 Annual Payroll Tax – Mar/Apr 2015

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The stage is set for changes to be rung in the 2015 Budget proposals. With this as background, the Annual Payroll Tax Seminar promises to be both an interesting and an important one.

The final changes to the legislation that are effective from March 2015 will be discussed in detail at the seminar, along with the 2015 Budget proposals and a glimpse into what the future holds for payroll matters.

Some topics that will be discussed:

  • Retirement Reforms – where are we now, and where are we going?
  • Final PAYE law changes – residential accommodation, company cars, restraint of trade, income protection schemes, etc.
  • Labour Law changes – overview of the Employment Equity changes.
  • PAYE Administration – tax certificates and related issues.
  • Employment Tax Incentive – calculation changes and refunds.
  • The 2015 Budget proposals.
  • Future prospects.
  • AA88 Penalty Notices – changes that employers must comply with.

Continuing Professional Development (CPD)

Attendance of this seminar will accrue 3 hours of CPD points.

Cost

  • Normal price: R 1,945 (excl. VAT)
  • Seminar loyalty club members: R 1,700 (excl. VAT)

Early bird discount available for bookings before 31 December 2014.

When and where

Click here to view the dates and venues across South Africa.

Book your seat now and let payroll expert, Rob Cooper explain the legislation in layman’s terms to ensure you are ready for the new tax year.