- Employee Travel Allowance
- Company Vehicles
If an employee makes use of a company vehicle that is leased, they are taxed on the lease and fuel provided monthly. If the vehicle is not under lease, the fringe benefit should be calculated by determining the value of the vehicle, which could yield a substantially different value. Companies should ensure that the correct rule is being applied to avoid unwanted tax exposure.
- Disability Benefit Contributions
Previously, employees with disability were eligible to claim an income tax deduction against their disability benefit contributions. Under this legislation, pay outs to employees that had become disabled, were taxed in the hands of the employee. Legislation passed in 2015 altered the process so that disability benefit premiums are taxed as fringe benefits and disability payouts are tax-free. If this change has not been implemented in payroll, companies put themselves at risk with SARS.
- Retirement and Risk Benefits
- Remuneration models
Companies often believe that a change in their remuneration model affects their tax obligations. Since tax is applied to individual payroll, changes to this will determine whether employees need to pay more or less tax, not the remuneration model. Companies are therefore encouraged to shift to the remuneration structure that best suits their needs.
To avoid these expensive PAYE errors, we offer small and medium-sized businesses accurate and reliable payroll services. Contact our team for more information.
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