New business - PAYE, UIF, Compensation Fund

[Andre_h]

Hi,

Merry Christmas to all Christian users of this forum!

I thought I would just post a general query before my own Christmas festivities begin and hope that someone notices in the next few days or so.

I am about to start a new business (laundry franchise in Parkview Johannesburg) and have a few tax related questions. I am the only director and shareholder in the company that owns the business.

The company has registered as an employer for PAYE and UIF (I have the relevant reference numbers). And I know how to deduct and pay PAYE and UIF using the eFiling EMP201.

First question(s): Do I have to pay PAYE myself or does the Provisional tax system still apply for me? I think I have read somewhere that company directors now pay tax via PAYE and IRP5. My salary will not be fixed initially. I''l probably not draw any salary for the first six months or so. What about UIF? Do I register and make my own UIF contribution together with my staff?

Second question(s): I am trying to register as an employer at the Dept of Labour for purposes of UIF using the relevant form. What's with the "Fax the form to..."? I haven't seen a fax machine in years. Is there an email address I can use instead? Do I re-register at the DOL every time a new employee joins? Do I register myself as a UIF contributor? If there is no change in employees in a particular month do I still have to send the form W.As 2 to the Dept of Labour? Sorry, these questions are a bit jumbled but its all a little confusing.

Third question(s): After I have registered at the Compensation Commissioner, is there a month deduction and payment that has to be made? How does this work? They want my bank details

Thanks in advance, and once again, Merry Christmas and I hope we all have a prosperous 2017.

Andre

[Andre_h]

Hi,

Merry Christmas to all Christian users of this forum!

I thought I would just post a general query before my own Christmas festivities begin and hope that someone notices in the next few days or so.

I am about to start a new business (laundry franchise in Parkview Johannesburg) and have a few tax related questions. I am the only director and shareholder in the company that owns the business.

The company has registered as an employer for PAYE and UIF (I have the relevant reference numbers). And I know how to deduct and pay PAYE and UIF using the eFiling EMP201.

First question(s): Do I have to pay PAYE myself or does the Provisional tax system still apply for me? I think I have read somewhere that company directors now pay tax via PAYE and IRP5. My salary will not be fixed initially. I''l probably not draw any salary for the first six months or so. What about UIF? Do I register and make my own UIF contribution together with my staff?

Second question(s): I am trying to register as an employer at the Dept of Labour for purposes of UIF using the relevant form. What's with the "Fax the form to..."? I haven't seen a fax machine in years. Is there an email address I can use instead? Do I re-register at the DOL every time a new employee joins? Do I register myself as a UIF contributor? If there is no change in employees in a particular month do I still have to send the form W.As 2 to the Dept of Labour? Sorry, these questions are a bit jumbled but its all a little confusing.

Third question(s): After I have registered at the Compensation Commissioner, is there a month deduction and payment that has to be made? How does this work? They want my bank details

Thanks in advance, and once again, Merry Christmas and I hope we all have a prosperous 2017.

Andre

Ok so I've done some more research. It seems that I have to register myself, as an employee of the company, for both PAYE and UIF. Can someone confirm this?

A

[Christel]

Hi there,
W.r.t. paying UIF and PAYE for yourself monthly I suggest you ask your accountants re that. They will be the best people to advise you.
Registration of UIF at DoL - you can email the completed UI-8 and UI19 together with a copy of your ID (as the employer) and the relevant company docs to: webmaster2@labour.gov.za as well as webmaster@uif.gov.za I would suggest you follow up by phone in about 1 week to make sure they can trace the documents. Remember to link your PAYE number to your UIF number - or just complete it on the monthly UI19.

COIDA registrations is a pain and I would not recommend you do it yourself. Log onto Company Partners website and pay R1400, upload the relevant docs and guaranteed after 3 weeks you will be registered. Then yearly you complete the online Return of Earning and pay the assessment. This is normally in April/May of every year.

[Andre_h]

Thanks Christel. I might take your advice and sign up with Company Partners.

I have one further question though. What is the situation with Zimbabwean workers and tax/uif? Can I register them for UIf if they have work or asylum permits?. It seems to me that foreign nationals should be able to work and pay taxes in SA if their papers are in order.

Thanks,

Andre

[Andre_h]

Hi there,
W.r.t. paying UIF and PAYE for yourself monthly I suggest you ask your accountants re that. They will be the best people to advise you.
Registration of UIF at DoL - you can email the completed UI-8 and UI19 together with a copy of your ID (as the employer) and the relevant company docs to: webmaster2@labour.gov.za as well as webmaster@uif.gov.za I would suggest you follow up by phone in about 1 week to make sure they can trace the documents. Remember to link your PAYE number to your UIF number - or just complete it on the monthly UI19.

COIDA registrations is a pain and I would not recommend you do it yourself. Log onto Company Partners website and pay R1400, upload the relevant docs and guaranteed after 3 weeks you will be registered. Then yearly you complete the online Return of Earning and pay the assessment. This is normally in April/May of every year.

Christel, this may sound like a stupid question, but I actually can't find any answer anywhere. Do I somehow have to pre-register my workers for UIF or do I "Declare" them at the end of every month on the UIF Declaration form UI-19? If I have to pre register them, how do I do that? Which site?

I completed, signed and emailed the Application for Registration as an Employer (is that form UI-8?) but not the UI-19 since my business will only start in January and I don't have any employees yet. How does it actually work in practise? Also, are UIF payments made to SARS together with PAYE notwithstanding the the fact that UIF is a Dept of Labour issue.

maybe I'm a bit dense but it all seems a bit confusing...

Thanks a lot in advance.

André

[Christel]

Hi Andre, The UI 8 must be accompanied by the UI19 - you will use the UI19 to register the workers at DoL. After registration, you will have to complete monthly UI19's and email them to the DoL to update their records (or if you have a payroll program it can be done electronically). Payment of UIF are done thru SARS (emp201) if you have a PAYE number, else you pay UIF directly to DoL.

All info wrt UIF etc is on the DoL's website.

[Andre_h]

Hi Andre, The UI 8 must be accompanied by the UI19 - you will use the UI19 to register the workers at DoL. After registration, you will have to complete monthly UI19's and email them to the DoL to update their records (or if you have a payroll program it can be done electronically). Payment of UIF are done thru SARS (emp201) if you have a PAYE number, else you pay UIF directly to DoL.

All info wrt UIF etc is on the DoL's website.

OK brilliant. Thanks so much Christel.

Andre

[Dave A]

After registration, you will have to complete monthly UI19's and email them to the DoL to update their records (or if you have a payroll program it can be done electronically).

Just for the sake of completeness, the other option for submitting monthly UIF returns is to use the online uFiling service.

[Andre_h]

Just for the sake of completeness, the other option for submitting monthly UIF returns is to use the online uFiling service.

Thanks for that, Dave. Correct me if I'm wrong, if I'm going to file monthly PAYE returns, I might as well do the UIF returns simultaneously. Then there would be too need for a seperate UIF filing, yes?

Andre

[Dave A]

if I'm going to file monthly PAYE returns, I might as well do the UIF returns simultaneously. Then there would be too need for a seperate UIF filing, yes?

You'll notice the EMP201 you submit monthly to SARS and the UI19 you submit monthly to UIF contain significantly different information.

You need to submit both the EMP201 and the UI19 monthly (regardless of the channel). All I'm mentioning is another channel to comply with your UI19 reporting duty.

[Andre_h]

You'll notice the EMP201 you submit monthly to SARS and the UI19 you submit monthly to UIF contain significantly different information.

You need to submit both the EMP201 and the UI19 monthly (regardless of the channel). All I'm mentioning is another channel to comply with your UI19 reporting duty.

OK Dave, got it. Thank you so much.

Andre