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Submission of the 2017/2018 Return of Earnings to the WCA

Return of Earnings Submissions 2018

Return of Earnings – 2017/2018

Employers are required to submit a Return of Earnings form (W.As.8) on an annual basis. The Department of Labour has announced that the 2017/2018 submissions will open on 1 April 2018 until 31 May 2018. Any submissions done after this date will attract a 10% penalty and will have interest added to the account.

GET 20% DISCOUNT WHEN YOU APPLY FOR PERSONAL TAX RETURN ASSISTANCE BEFORE 01 JULY – CLICK HERE

What is a Return of Earnings (“ROE”)?

We are all familiar with the annual cycle of business income tax returns. Well, in the same way, all employers must submit annual returns to the Compensation Fund. This annual return is referred to as the Return of Earnings.

On the form, Employers are obligated to declare actual salaries and wages for the year ended 28 February, as well as the estimated earnings for the following year ending on the last day of February.

For the 2017/2018 ROE we will require the following information to prepare the return:

Actual salaries and wages paid for the period 1 March 2017 to 28 February 2018. (annual value per employee)

Estimated salaries and wages for the period 1 March 2018 to 28 February 2019. (annual value per employee)

From the returns submitted, together with the nature of your business, the Compensation Commissioner determines your annual “premiums”. In other words, you are “assessed” – and you become liable to pay the assessed amount by the end of the following month.

What is the payment for?

The annual payment made by employers to the Compensation Fund, provides cover for their employees who could get injured at work.

Employers are obligated by the Compensation for Occupational Injuries and Diseases Act, 1993 to take out this insurance.

By being registered, employers are protected against civil claims if employees get injured on duty or contract occupational diseases. These employees can then claim compensation for temporary or permanent disablement from the Fund.

Who is an Employer?

An employer is any person, who employs one or more workers in connection with their business or farming activities.

Who is an employee?

An employee is a person who has entered into, or works under contract of service or of apprenticeship or learnership with an employer, whether the contract is expressed or implied, oral or in writing, and whether remuneration is calculated by time or work done, or is in cash or in kind; and includes:

  • A casual/temporary employee, employed for the purpose of the employer’s business
  • A working director of a company or a member of a body corporate, who has entered into a contract of service or of apprenticeship or learnership with the body corporate, in so far that the employee acts within the scope of his/her employment in terms of such contract

A person provided by a labour broker, against payment to a client for the rendering of a service, or the performance of work, and for which service or work such person is paid by the labour broker, is an employee of the labour broker. The earnings of such persons should not be included in the client’s Return of Earnings document.

Return of Earnings Deadline South Africa

Who must register with the fund?

All employers who employed one or more part-time or fulltime employees in connection with their business or farming activities must register within seven days with the Compensation Fund. The application however, once submitted can take several months to be completed by the Fund.

A separate registration is necessary for each separate branch of a business, unless an arrangement for combined registration has been made with the Fund.

MoneyPenny are registered and experienced in submissions of Return on Earnings and will gladly assist you and your business in doing so.

Our Charges (ex VAT):

Registration with the Fund: minimum of R800 or time spent

Annual Return submission: minimum of R500 or time spent

To request assistance in this matter, please complete the form below and our team will be in touch.

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Tax and Bitcoin – What Does SARS Say About It?

Do I pay tax on Bitcoin?

‘Tax and Bitcoin’ are on everyone’s lips as we try and figure out where SARS stands on the issue of taxation on cryptocurrency. They recently made their stance on tax and bitcoin more clear – here’s what they had to say.

The South African Revenue Service (SARS) will continue to apply normal income tax rules to cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income.

In a statement released on Friday (6 April), the revenue service said that the onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued.

Failure to do so could result in interest and penalties, it said.

Increased attentiveness and speculation regarding the future of cryptocurrencies has prompted calls for SARS to provide direction as to how cryptocurrencies should be treated for tax purposes,” it said.

However, as indicated in this media statement, there is an existing tax framework that can guide SARS and affected taxpayers on the tax implications of cryptocurrencies, making a separate Interpretation Note unnecessary for now.


Legal position

In South Africa, the word “currency” is not defined in the Income Tax Act (the Act).

Cryptocurrencies are neither official South African tender nor widely used and accepted in South Africa as a medium of payment or exchange.

As such, cryptocurrencies are not regarded by SARS as a currency for income tax purposes or Capital Gains Tax (CGT). Instead, cryptocurrencies are regarded by SARS as assets of an intangible nature, it said.

Whilst not constituting cash, cryptocurrencies can be valued to ascertain an amount received or accrued as envisaged in the definition of “gross income” in the Act,” SARS said.

“Following normal income tax rules, income received or accrued from cryptocurrency transactions can be taxed on revenue account under “gross income.

“Alternatively such gains may be regarded as capital in nature, as spelt out in the Eighth Schedule to the Act for taxation under the CGT paradigm.

“Determination of whether an accrual or receipt is revenue or capital in nature is tested under existing jurisprudence (of which there is no shortage),” it said.

SARS said that taxpayers are also entitled to claim expenses associated with cryptocurrency accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income and for purposes of trade.

SARS added that gains or losses in relation to cryptocurrencies can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:

1. A cryptocurrency can be acquired through so called “mining”. Mining is conducted by the verification of transactions in a computer-generated public ledger, achieved through the solving of complex computer algorithms. By verifying these transactions the “miner” is rewarded with ownership of new coins which become part of the networked ledger.

This gives rise to an immediate accrual or receipt on successful mining of the cryptocurrency. This means that until the newly acquired cryptocurrency is sold or exchanged for cash, it is held as trading stock which can subsequently be realized through either a normal cash transaction (as described in (2) or a barter transaction as described in (3) below.

2. Investors can exchange local currency for a cryptocurrency (or vice versa) by using cryptocurrency exchanges, which are essentially markets for cryptocurrencies, or through private transactions.

3. Goods or services can be exchanged for cryptocurrencies. This transaction is regarded as a barter transaction. Therefore the normal barter transaction rules apply.


Value-Added Tax (VAT)

In the 2018 annual budget review, Treasury indicated that the VAT treatment of cryptocurrencies will be reviewed.

Pending policy clarity in this regard, SARS will not require VAT registration as a vendor for purposes of the supply of cryptocurrencies.

If you need assistance with your personal or business tax, please contact us.

Original Article on www.businesstech.co.za

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The Benefits of Outsourcing Your Accounting Needs

Accounting is so much more than balancing your books and preparing your budget.  Accurate, well-designed and up to date management accounting is at the root of many successful businesses, who avoids running out of cash because their assumed margins were not accurate.

The size of your business and employee responsibilities will determine how you are managing your accounts. Outsourcing your account management could really relieve the stress on individuals in a small business setting, and add credibility to the brand as a whole.

Let’s take a look at the benefits of outsourcing your accounting needs:

 

Improve Accuracy:

 

Outsourcing accounting services and payroll outsourcing can be quite beneficial when it comes to generating accurate results that can be as high as 99.95%.  Invensis

If there is one thing that you want in business, it’s accuracy. Studies show that outsourcing this service can boost accuracy, which can add to your business reputation.

 

Never Miss a Payment

 

In many businesses, employees take on a variety of responsibilities. Taking away the accounting tasks would eliminate the risk of late payments and invoicing when the main projects become overwhelming. Outsourcing your accounting will ensure that your bills are paid on time, and as a result, improve your relationships with your team and clients alike.

Access to The Best Software

 

 

The market is constantly changing, and so is the technology used to manage accounts. An outsourced accounting service will be using only the best programs and software to get the job done. That means you won’t have to worry about buying more software or staying up to date in the field of accounting.

 

Advice and Insights from The Experts

 

Make use of accounting consultants to provide assistance, help improve your profit margins and learn about how you can grow your business. These outsourced individuals are experts in their niche, so there is no better person to trust with the tasks at hand.

Moneypenny offers a range of accounting services, including, but not limited to:

  • Bookkeeping up to trial balance
  • Fixed asset register maintenance
  • Budget preparation
  • Cash flow management
  • Management accounting
  • Inventory Management
  • Independent reviews

To discuss how we can assist with your business accounting needs, please do not hesitate to contact us.

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4 Signs that You Need Business Consultation Services

Seeking out consultation for your business doesn’t mean that you are desperate or in trouble. On the contrary, business consultation gives you the chance to eliminate risk factors and implement valuable problem-solving skills that will benefit the future of your brand. Of course, a business consultant will also be able to assist with current issues and queries.  

Here are 4 signs that point to the fact that you might be in need of a professional business consulting service:

You don’t have a Vision

It might be the case that your business is running exactly the way you want, but you don’t know what the future holds. As a business owner, it’s important to have a vision for your business and a clear idea of what it is you want to achieve. Without a vision, you cannot implement a realistic strategy and analyse business growth.

Your Employees Aren’t Performing

In order to inspire your employees, you have to create incentive and set goals for their performance. All leaders are different, and if you don’t see yourself as the type of leader to adequately manage your team, a business consultant will be able to give you insights on how to manage your workforce.

You Are Burning Out

Managing a business comes with a lot of stress and responsibility. If you don’t have a big team, it can get really tough to manage it all. A business owner that’s overworked won’t be able to function optimally. A business consultant will be able to help you structure your time and resources to boost productivity and include ‘down time’.

You Need A Fresh Perspective

One of the biggest benefits of having a consultant is gaining access to a fresh, new perspective on your business happenings. This individual will have an objective opinion on your business structure and will help you pinpoint factors that you might have overlooked because you’re personally involved.

We Offer Business Consultation Services

These are just a few of the reasons why having a business consultant can really benefit your business. At Moneypenny, we offer a business consultation service that will help you grow your business and reach your goals. 

To get more information, contact us by clicking here.

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Everything You Need to Know About Business Tax in 2018

It’s been a busy start to 2018 as businesses prepare for the year ahead. The Minister of Finance delivered the Budget Speech on 21 February and now we’re left wondering how all his announcements will affect our personal finances and the way we conduct business.

There have been plenty of changes when it comes to taxation and reliable information can be hard to come by. Therefore, we’re making available to you, two important documents that outline the 2018 Budget Tax Guide as well as a Budget Tax Summary by The South African Institute of Chartered Accountants.

 

Click the buttons above to download.

Contained in these documents, are everything you need to know about business tax for the year ahead. Should you require further support with regards to your tax, accounting or HR, please do not hesitate to contact us.

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Budget 2018 – What You Need to Know

On Wednesday, the Minister of Finance, Malusi Gigaba delivered the much-anticipated and hotly debated Budget Speech for 2018.

While most of us were stuck at work, unable to listen to what the Minister had to say, there were some very important announcements that could change the way we do business and handle our finances.

Here are some of the most important points, curated by MoneyPenny.

The increase in VAT

One of the most prominent announcements was the increase in VAT from 14% to 15%. This will be the first increase in VAT since 1993 and will allow government to raise an estimated R36 Billion in the next financial year. R23 billion will be used to cover current government debt.

It remains to be seen what impact this will have on poor households. The government have retained their zero-rated VAT on basic items such as maize meal, brown bread and rice.

No Wealth Tax

There’s been a lot of talk surrounding the introduction of a wealth tax that will see wealthy people having to pay an annual tax on the sum of their assets.

This has not yet been introduced but there was an increase in the ad-valorem excise duty rate on luxury goods from 7% to 9%.

Estate duty also saw an increase from 20% to 25% for estates of R30 million or more.

Higher Fuel Levies

The fuel levy will increase by 22 cents per litre while the Road Accident Fund levy will increase by 30 cents a litre.

This means that no matter what mode of transport you use, you will end up paying more to get from one point to another.

This will certainly have a negative impact on the poor and could lead to changing in the way that we commute.

Free Education

After Jacob Zuma’s bombshell announcement that the government will provide free education to the poor, R57 billion has been set aside to make this happen over the course of the next three years.

First year students with a family income of less than R350 000 per annum at universities and TVET colleges will be funded for the full cost of study.” 

While the exact impact of these fiscal changes remains to be seen, we urge everyone to be very wary of their spending habits and encourage you to ensure that your tax affairs are in order.

For assistance with any accounting and tax related issues, please do not hesitate to contact us.

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2018 Budget Speech: What Can We Expect?

On a political front, it has been a very exciting start to 2018. Regardless of where your allegiances lie, it is safe to say that most South Africans are much more positive about our country’s political future than we have been for many years.

The Rand has responded very well among all the changes that 2018 has brought – alleged corrupt officials have been arrested, we’ve seen the back of Jacob Zuma and President Cyril Ramaphosa has impressed with his inaugural State of the Nation Speech.

Next up, we have the Hon. Malusi Gigaba who will deliver the 2018 Budget Speech on Wednesday 21 February.

With a budget shortfall of around R50.8bn, you’d expect the Minister of Finance to be focussed on the job at hand instead of playing Candy Crush during SONA 2018; nonetheless, as another debutant with regards to budget speeches, Gigaba has his work cut out for him.

The main aim for the 2018 Budget Speech will be to close the massive budget deficit. Corrective intervention is needed to improve South Africa’s fiscal outlook and will most likely come in the form of increased taxes on cigarettes, alcohol and fuel.

Further tax hikes could be seen in the form of additional progressive tax, concentrated on higher income groups.

Another important factor will be to restore investment confidence in our markets – Gigaba would have to implement measures to stabilise the debt trajectory to satisfy any reviews from Moody’s and co that are likely to follow.

Another option at Gigaba’s disposal is to raise the VAT rate, currently at 14%. With rampant poverty and unemployment across the country, this is something that would hit the poor the hardest. To limit the effect of an increase in VAT to the poor, we might even see a tiered VAT increase – this will see an increase in VAT on luxury items.

Whether South Africa can avoid another ratings downgrade remains to be seen – we think it might be avoided by a whisker but there’s certainly a lot of work to be done to restore investor confidence.

Above all of this, the Minister would also need to find funding for the proposed free tertiary education program – this is an unenviable task that could make or break the success of the 2018 Budget Speech.

At MoneyPenny, we can only advise that in uncertain financial times, every business and individual maximise the amount of money that can be saved every month and should focus on getting their tax affairs in order while working according to a strict financial plan.

If you would like any assistance with your financials and tax, please do not hesitate to contact us.

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IMPORTANT NEWS: COIDA Threshold Increase 2018/2019

The Hon. Minister of Labour, NM Oliphant, announced on 13 December 2017 in a Government Gazette (41382) that she intends to increase the amount of earnings under Section 83 (8) of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act no. 130 of 1993).

The Hon. Minister has increased the maximum amount of earnings from R403 500 to R430 944 per annum with effect from 01 March 2018.

Click here to download the Government Gazette Notice.

This COID act provides for compensation for disability in the event of occupational injuries or diseases contracted at work, or death resulting from these injuries or diseases.

In the same gazette, she announced the way in which compensation, including the nature and degree of disablement is calculated, the nature of benefits and the recommended minimum and maximum compensation, which comes into effect 1st April 2018.

There is also a 5.8% increase in monthly pensions payable, from the same date.

Should you have any further questions, please do not hesitate to contact us.

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SARS DEADLINE LOOMING: EMP501 Annual Submission

As 2018 kicks off in full swing, it’s time to plot and plan our way around the various SARS submission deadlines.

The first such deadline is the annual submission for EMP501 – during the Employer Reconciliation process, employers are required to submit an EMP501 declaration which reconciles the taxes collected from employees with the monies paid to SARS, and the total tax value of employees’ income tax certificates for the respective period.

The Income Tax Act No.58 of 1962 states inter alia that employers are required to:

  • Deduct the correct amount of tax from employees.
  • Pay the amounts over to SARS on a monthly basis.
  • Reconcile these deductions and payments during the annual and interim reconciliation process.
  • Issue tax certificates to employees.

The deadline for the EMP501 submission for 2018 is 01 April 2018 – 31 May 2018. This gives employers 2 months to prepare and submit the EMP501 information to SARS.

While these submissions, and others, can be an admin nightmare, they really don’t have to be. By outsourcing the work to a tax consultant like MoneyPenny, you can rest assured that all tax-related issues are taken care of, allowing you to focus on growing your business.

Effective employee tax management relieves stress, not only on your business, but also on the people who work for you.

Non-compliance with regards to your taxes, will lead to punitive penalties and could ultimately cost your business a lot of money.

By structuring your affairs and transactions optimally, with the help of MoneyPenny, you can end up saving substantial amounts of money in income tax, capital gains tax and estate duties.

To learn more about how we can help you and your business, complete the form on our CONTACT US page and our experienced team of tax advisors will get in touch.

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