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PAYE, Tax, UIF and Relief Funds


SARS In General

  • Deadlines still apply for any returns that are due e.g. EMP201, VAT201, IT14SD etc. But deadlines for objections do not include the lockdown period.
  • If a client cannot pay an existing SARS debt they need to go through the normal channels to enter a payment plan.
  • No announced changes to VAT at all.
  • Current announced policy affects PAYE, ETI and Provisional Tax.
  • And only for qualifying businesses- gross income for 2021 less than R50 million, no more than 10% derived from interest, dividends, foreign dividends or rental from letting of fixed property.
  • Only applicable if they are in good standing with SARS.


ETI

ETI has been expanded as follows, for the period 1 April 2020 to 31 July 2020.

Monthly RemunerationFirst 12 ‘Qualifying’ MonthsSecond 12 ‘Qualifying’ MonthsExpanded Age Tests
(1 April 2020 to 31 July 2020)
Applies to –Qualifying employees
(18 to 29 years old)
Qualifying employees
(18 to 29 years old)
1.Qualifying employees (18 to 29 years old)
Qualifying employees aged 30 to 65
R0 to R 2 000R500
(50% x monthly remuneration)
R500
(25% x monthly remuneration)
R500
R2 000 to R 4 500R1 500R1 500R 500
R4 500 to R 6 500R1 500
(75% x (remuneration – R 4 500))
R 500
(50% x(remuneration – R 4 500))
R500
(25% x (remuneration – R 4 500))
  • This will apply to 4 EMP201 returns, starting with April due 7th May.
  • If there is a balance owing to the employer after the calculation – SARS will reimburse, monthly, for the four months.
  • Must be claimed via EMP201.


PAYE

  • 20% of PAYE payments can be deferred for 4 months starting 1 April 2020 (7 May EMP201) and ending 31 July 2020 (7 August EMP201)
  • This applies to PAYE only, not UIF and SDL.
  • Repayment of deferral must be done in 6 equal instalments, starting August 2020 (7 September EMP201).See below example:
Deferral of PAYE liability
Payroll MonthEMP201 PAYE LiabilityLESS 20% DeferralEQUALS 80% PayableSubmit By
April 2020R 150 000R 30 000R 120 0007 May 2020
May 2020R 145 000R 29 000R 116 0005 June 2020
June 2020R 155 000R 31 000R 124 0007 July 2020
July 2020R 150 000R 30 000R 120 0007 August 2020
Cash Flow BenefitR120 000
Repayment of Deferred PAYE
Payroll MonthAmount PayableSubmit By
August 2020R 20 0007 September 2020
September 2020R 20 0005 October 2020
October 2020R 20 0006 November 2020
November 2020R 20 0007 December 2020
December 2020R 20 0007 January 2021
January 2021R 20 0007 February 2021
  • No interest on deferred PAYE, but will be raised on any repayment defaults.
  • EMP201 must be submitted by the 7th or late penalties will be applied.
  • Only applicable if they are in good standing with SARS.
  • SARS are busy revising EMP201.

Provisional Taxes

  • Deadlines remain the same.
  • Awaiting threshold for individuals to be announced.
  • 202101: Complete IRP6 as normal, but client pays 15% of payment due.
  • The balance sits on SoA with no interest or penalties.
  • 202102: Complete IRP6 as normal, but payment based on 65% of estimated tax liability for year (so pays 50%). Balance sits on SoA with no interest or penalties.
  • Balance of IT owing to be paid in top up tax within 6 months of year end, or penalties will be levied.

UIF National Disaster Fund

  • 2 ways UIF can be used- National Disaster Benefit and TERS. You can only access one type of support.
  • National Disaster Benefit (NDB) is not new. This is the normal way to claim for UIF for going into short time or temporary shutdown. This is applied for by the employee and paid to employee directly.
  • For Shutdown NDB will pay each employee up to R3500 per month for max 3 months.
  • For Short Time NDB will pay difference between what paid and up to max of UIF benefit.
  • Illness benefit for leave more than 7 days up to 14 days. Applicable to those in quarantine. Classed as Special Leave- not sick leave.

UIF C19 TERS and COIDA

  • This applies to businesses who temporarily shut down.
  • Applied for by employer and paid to employer who then pays staff.
  • Minimum payment is minimum wage (sectors apply) and max is R6 370 per month.
  • Can be claimed for 21 days-3 months. Payments likely to be delayed due to demand.
  • COIDA can be applied for if COVID19 is contracted through work e.g healthcare workers and foreign travel. Apply as normal.

SMME Debt Relief Scheme

  • Thresholds of SMME based on industry and employees.
  • Loans to be provided at Prime -5%, but Prime +10% if loan is abused. For 6 month period.
  • To be used to pay rates, employees, tax and working capital.
  • List of criteria- for us importantly they need AFS, 3 months management accounts, business profile and 6 month cash flow projection.
  • Apply via smmesa.gov.za

SMME Business Growth & Resilience Facility

  • For Businesses to take advantage of supply opportunities due to COVID19 or shortage of goods in local market.
  • 6 month loan- Prime-5%
  • List of criteria- for us importantly they need AFS, 3 months management accounts, business profile and 6 month cash flow projection.
  • Apply via smmesa.gov.za

IDC & Tourism

  • Funding available for entities manufacturing essential supplies as per treasury guidelines.
  • Increased funding for their usual target industries- Agro Processing, mining and metals, and automotive industry.
  • Tourism Industry- exact help to be announced but will focus on Black, women and youth owned entities. Max turnover R2.5 million


Rupert & Remgro Fund

Applications Now Closed

  • Financial support for Sole Props and SMEs.
  • Will be managed by Business Partners.
  • Still awaiting details and information on how this will work.

SA Future Trust

  • Money from Oppenheimer of R1 billion.
  • Used to help employers to keep employees in jobs.
  • Launch on 3rd April 2020.
  • Interest free loan up to R750 per employee per week for 15 weeks. Payable within 5 years.
  • Apply via the 4 big banks.

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