QuickBooks’ payroll tax software: Adapting to new income tax law
Every employer has a role to play in the income tax system. The new income tax laws affect the calculations that an employer has to make regarding the taxes that need to be paid by the business. Do you know what these new laws are, and how they affect your tax calculations? If not, there’s no need to fret: QuickBooks’ revolutionary payroll tax software takes all the guesswork out of the new South African tax laws – and ensures that your company is tax compliant at all times.
What is income tax?
Income tax can be defined as tax charged on financial income. There are different types of income upon which you can be taxed – namely, income from employment; income from your business, corporation or trade; investment income; pension; annuities and so forth.
What is the role of the employer in the Income tax system?
As an employer, you need to deduct employee taxes from employees’ salaries. Taxes deducted include PAYE (Pay-As-You-Earn) and SITE (Standard Income Tax on Employees).
The employer must supply an IRP5 to each employee. The IRP5 states how much an employee earns, reveals any deductions and reflects the amount of tax deducted by the employer.
Do changes in the tax law affect employers?
Any tax law changes directly affect employers, and for those who do their payroll manually, the new tax laws will significantly influence these manual systems.
Employers who make use of payroll software are also affected by new tax laws, but fortunately, Quick Payroll tax software is designed to simplify the switch from old tax laws to new tax laws by automatically adjusting to the new laws.
How can payroll tax software assist an employer with the new tax laws?
It is of the utmost importance not to make any errors when calculating a business’s tax payments. Incorrect payments are penalised by SARS and could cost your business significant amounts of money.
It is for this reason that you need a reliable payroll system to help ensure all calculations are done correctly. Quick Payroll tax software is the answer to complying with the new tax laws. Because Quick Payroll automatically provides statutory and new tax law upgrades, you do not have to worry about how the new laws will influence your calculations.
With Quick Payroll software, there is less work and less worry. The automatic tax law upgrades ensure that your payroll software is always up to date, helping to prevent any financial consequences that outdated tax information might cause.
Quick Payroll takes the hassle and anxiety out of new income tax law compliance. When you use Quick Payroll tax software, you will be fully compliant with all tax and legal requirements for any new tax year.