Print Page   |   Report Abuse
News & Press: Technical & tax law questions

Quantum of PAYE to withhold for part time employee

07 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
Share |

Author: SAIT Technical

The answer to this query is based on legislation as at 2014/03/07.

Q: I have been doing a small Close Corp payroll for 5 years. The main member has a full time job and earns a salary on this co as a part time job. I have been deducting a 25% paye for the last 5 years. I do not know how much the person earns at his full time job and I let him know that I will deduct 25% since I don't know how much he earns full time. He has now informed me that SARS is claiming that he owes them R32,000. (for the 2012 and 2013 years of assessment now finalized). He says I might have deducted too little tax from him on his part time job. Would I be held responsible for this? Would SARS penalize me for this situation. The member has informed me that we need to meet and go to SARS. What would you advise me to do. 


A: In terms of the 4th Schedule to the Income Tax Act will the employer (the CC) be held responsible for the outstanding employees taxes in as far as the taxes were not calculated in terms of par 11C of the Fourth Schedule to the Income Tax Act, or alternatively the employee (the member). If then the final taxes were correctly calculated on assessment, then the taxes are due and payable. 


WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

Membership Management Software Powered by YourMembership  ::  Legal