Page 58 - Nexia SAB&T Business in South Africa Guide 2024

are misconduct, incapacity (ill health or poor work performance) and operational
requirements of the employer. Payment on dismissal includes accrued annual leave
pay, payment in lieu of notice – unless summarily dismissed or if the employee is
required to work the notice period. If dismissal is due to operational requirements,
severance pay of a minimum of one week’s salary for every completed year of
service, and any other amount that the employee is contractually entitled to.
Administrative Consequences of Hiring Employee(s)

Compliance Requirement
P Registration as Deduct tax from employees each month and
A Employer with SARS pay to South African Revenue Service (SARS)
Y for P.A.Y.E by 7th day of following month. At end of
E (EMP101 form) each year issue each employee with an IRP5
certificate (which must reconcile with total
P.A.Y.E paid). Also payable by members of CC’s
and directors of companies.
U Register with the UIF Pay over monthly contributions on basis of 1%
I and with SARS contribution by employee and 1% by employer
F based on the employees remuneration being
below a certain amount (R21 197,64 per
month). For employees who earn more than
this amount, the contribution is calculated
using the maximum earnings ceiling amount
(R211,97).
S Registration with 1% of total remuneration paid to employees.
D SARS Employers paying annual remuneration of less
L than R500 000 are exempt from payment of
these levies.
Workman’s Register and provide Basis of assessment to be paid by employers
Compen- annual reports annually.
sation re wages
PAYE should be withheld from remuneration paid to labour brokers unless an
exemption certificate is obtained.

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