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Thread: Employment question

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    Employment question

    Hi there,

    In a Company (Pty) or CC / Trust, which does not employ any staff, does the director/member/trustee need to pay over any UIF / Workmans compensation / SDL(the director earns over R500k per annum)?
    The director wants to pay PAYE monthly to reduce his provisional tax payments, can he register just for PAYE?
    thanks

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    Certainly a working director is an employee of the company. PAYE, UIF, SDL (if payroll is over R500k) and Workmans Compensation applies.
    The trouble with opportunity is it normally comes dressed up as work.

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    Roger15 (12-Aug-13)

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    Thanks,

    I was under the assumption that a working director of a company doesnt pay UIF as that person would not be able to claim from the fund because of their director status?
    Also, how does one define "working director" as I am sure there are many directors who are not involved in the day to day running of the company/CC/Trust?

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    Quote Originally Posted by Roger15 View Post
    I was under the assumption that a working director of a company doesnt pay UIF as that person would not be able to claim from the fund because of their director status?
    As a director of a number of companies, I can confirm that UIF contributions are made on my directors emoluments at each of them - or more accurately "was" when my pay was structured that way. When I took up the issue with the auditors, they recommended I took emoluments from one company only, and then raise admin fees from that company to the other companies where I'm also a director, which has proved more "contributions efficient."

    I wouldn't know about the prospects for claiming UIF as an unemployed ex-director - never done it - but I'm not aware of anything that prevents you from claiming as long as you are genuinely and completely unemployed.

    The reason I've limited these observations to "working director" is I'm not 100% certain of the position relating to "non-working" directors. All I know on this aspect was when I was on the BoD for one of the SETAs, PAYE was deducted and I was issued an IRP5. Whether UIF and other payroll tax contributions were paid over, I have no idea. It was before the time of the current IRP5 where there's so much more disclosure.
    The trouble with opportunity is it normally comes dressed up as work.

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    Roger15 (12-Aug-13)

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