Margin for error during employee tax calculation exists because the factors that influence tax vary. For example, an employee’s tax age affects his or her salary deductions. Similarly, the transactions on the employee’s pay slip, his or her year-to-date earnings, and the number of periods he or she has worked for all affect tax deductions. It’s important that your payroll tax software has this information up to date and customised to your business’s administration so that you don’t exceed tax thresholds.
QuickBooks’ payroll tax software calculates your employee payroll on time every month. In addition, it provides you with new tax law or statutory upgrades as they arise, keeping you updated with the latest tax laws. Designed for simplicity and adaptability across industry sectors, QuickBooks’ payroll tax software has options for owners launching their companies and multi-partnerships looking for sophisticated tax support.
What you need to know about Employee Tax:
South Africa has a taxation system that requires employers to register employees and submit portions of their earnings to the South African Revenue Service under certain Acts. They include:
- Standard Income Tax on Employees (SITE) is a term attributed to a portion of income tax deducted from employees. The amount deducted is determined at the end of the fiscal year, depending on whether the employee is younger than 65 and his or her earnings exceed R46 000 per year. He or she is also liable to submit a tax return.
- Pay As You Earn (PAYE) is a portion of employee tax that is calculated at the end of every week or month. South African law states that any employee’s remuneration that is not “net remuneration” as defined within the SITE limits, is subject to monthly PAYE deduction. This includes expenses such as travel allowances and annuity funds.
- Unemployment Insurance Fund payments are paid at one percent by the employee and one percent by the employer.
- As with the UIF, any PAYE-registered entity must register for the Skills Development Levy (SDL) and pay one percent of all taxable income to the state. This money is contributed to the Sector Education and Training Authorities (Setas), who facilitate skills development in South Africa. It’s important to remember that this is a company contribution and the money is not deducted from individual wages.
What are the benefits of using payroll tax software?
You can customise your company fringe benefits, expenses, commissions and bonuses per employee and have them totalled up for you on a monthly basis, without hassle. You can compare this total against your payroll, which will include all tax deductions, and records of permanent and temporary employees. A particularly useful feature of payroll tax software is the ability to make once-off payments, after which you can have an overview of how your payment structure affects your budget. You can make adjustments, re-structure your payments, and make global changes, without stressing your employees through payroll errors.
Contact QuickBooks today for superior payroll tax software
QuickBooks offers a selection of payroll software products that are ideal for calculating employee tax deductions. Choose from our range of business software programs to simplify your monthly payroll calculations.