FAQ

What does an outsourced accounting service company do?

Accounting firms provide a wide range of services and have the right skills to prepare their company’s financial statements, manage bank account operations, analyze financial data, and prepare outgoing invoices. Other services may include treasury and cash management, capital optimization, credit facility analysis, debt compliance monitoring, cash flow preparation.

When do I need to register my staff for UIF?

You are required by law to register with the Unemployment Insurance Fund (UIF) and contribute towards the fund if you have employed people for more than 24 hours per month. The monthly contribution for UIF is two percent of your worker’s gross salary per month. You must deduct one percent of your worker’s gross salary per month and you as the employer contribute one percent.

What is the difference between TAX and VAT?

TAX
A Tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization to fund government spending and various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law.

VAT
Value-Added Tax is commonly known as VAT. VAT is an indirect tax on the consumption of goods and services in the economy. Revenue is raised for the government by requiring certain businesses to register and to charge vat on the taxable supplies of goods and services. … VAT increased from 14% to 15% from 1 April 2018.

When do I need to pay Tax?

The tax year runs from March one year to February the following year. There is no minimum age when you must start paying income tax. What matters is the amount of your taxable income. If this is below a certain level, no tax is payable.

Do I qualify or does my company qualify for Tax?

If your business has an annual turnover of less than R1 million, you qualify as a microbusiness. This threshold means that your business is eligible for turnover tax, a simplified small business tax system.

What is a turnaround time?

In general, turnaround time means the amount of time taken to complete a process or fulfill a request. The concept thus overlaps with lead time and can be contrasted with cycle time.

What is CIPC?

The Companies and Intellectual Property Commission is an agency of the Department of Trade and Industry in South Africa. The CIPC was established by the Companies Act, 2008 as a juristic person to function as an organ of state within the public administration, but as an institution outside the public service.

What is Compensation for Occupational Injuries and Diseases Act, No 130 of 1993? (COIDA)

Provides for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases.

Employers are required to submit a Return of Earnings form (W.As.8) on an annual basis. The 2020/2021 submissions opened on 1 April 2021 and closed on 31 May 2021. Compulsory insurance for all employers operating within South African borders that employ staff or doing government tenders.

The calculation is based on the annual salaries for the period x rate % to determine by the department in the class of work you are registered under. The higher risk higher % calculation.

• Rand Mutual Assurance-RMA (if with metal, fuel & mining industry) – due by 31st March each year.
• Federated Employer’s Mutual Assurance Company (FEM) – Construction Industry – due by 31st March annually (minimum amount due R2,500)