SARS Notice: Auto Registration of Individuals
SARS are taking steps to automatically register all individuals for Personal Income Tax if according to third party information available to, there is an indication of economic activity, and the individual is not registered. This strong action is taken in terms of section 22(5) of the Tax Administration Act that states:
“Where a person that is obliged to register with SARS under a tax Act fails to do so, SARS may register the person for one or more tax types as is appropriate under the circumstances or for purposes of section 26 (3).”
SARS Notice
PERSONAL INCOME TAX: AUTO REGISTRATION WILL BE INITIATED FROM OCTOBER 2022
As the South African Revenue Service (SARS) celebrates its 25th anniversary, we are committed to improving our service offering and enhancing our systems and processes to make compliance easy and seamless. Who can be auto registered? Automatic registration will be initiated for Personal Income Tax for an individual that is not registered for tax, but SARS detects 3rd party data that indicates economic activity. The person is automatically registered by SARS in terms of section 22(5) of the Tax Administration Act (Act No. 28 of 2011 as amended). Registration for other tax products
Please note that this registration is for Personal Income Tax (PIT) purposes only. If the auto-registered taxpayer is a sole proprietor, he or she may have to register for other tax products like PAYE for an employer, Value Added Tax for a vendor, and Customs and/or Excise if they are a trader in that field. Notification to the auto-registered taxpayer
SARS will send an SMS and a letter to such an individual, officially welcoming them as a registered taxpayer and informing them of how to access our services and what their rights and obligations are. What is next after registration? It is important for newly registered taxpayers to register for eFiling, as this is the most efficient way to file a tax return, view assessment results, make payments, and manage many other tax matters. More Information
More details regarding our channels, office hours, services, tailored information regarding Personal Income Tax, as well as a comprehensive FAQ repository are available on the SARS website: www.sars.gov.za
Sincerely,
THE SOUTH AFRICAN REVENUE SERVICE
29 September 2022
Regards,
Rob Cooper
Chairman Payroll Authors Group of South Africa
All information provided by the PAGSA is subject to our DISCLAIMER.

A Tribute to Dave Teron on his Passing
It was with great sadness that I heard the news of the passing of Dave Teron on Tuesday 28th February 2023. Some of those who are new to payrolls might not know of him, but Dave played a major role in achieving recognition for payrolls in South Africa as a financial system that stands independently of other systems on its own feet. Besides opening his own payroll supplier company, Paywell, in the early 1980’s, Dave also established both the South African Payroll Association as well as the Payroll Academy that has helped thousands of learners over the years to achieve a National Diploma in Payroll Administration Services, putting them in a position to be able to seek job opportunities in this field. In 1989, with the assistance of the SARS Director of law at the time, Mr Ian Meikeljohn, the Payroll Authors Group was established to assist both SARS and payroll suppliers to provide for the complexity of the administration of the SITE requirements in their respective systems. The five payroll provider companies that were instrumental in the establishment of the PAG were Accsys, Paywell (represented by Dave), Paywise, QPAC, and VIP Payroll. In short, Dave can only be described as a ‘baanbreker’ of the South African payroll world. He was a regular figure in the gym and spent much of his free time in diving spots around the world, including Indonesia (particularly Bali) and the remote waters of New Guinea, taking beautiful underwater photographs of the reefs and seawater life. Dave’s surviving family includes his wife, two children, and grandchildren. We send our condolences to them during this difficult time. From the PAGSA and from me in particular, thank you Dave for your massive contribution to payrolls over the years. Rest in peace. Rob Cooper
Chairman Payroll Authors Group of South Africa
All information provided by the PAGSA is subject to our DISCLAIMER.

EMPLOYER FILING SEASON: YEAR ENDING FEBRUARY 2023

SARS has issued a notice in respect of the 2022 Employer Annual Filing Season.

According to this notice, the filing season will commence on 1 April 2023 and ends on 31 May 2023. This includes all your reconciliation related documents (EMP501 and Tax certificates) for the period 1 March 2022 to 28 February 2023.

Please ensure that your Annual Reconciliation is submitted on or before 31 May 2023.

To access the notice, please click on the link below:

https://www.sars.gov.za/wp-content/uploads/Docs/PAYE/Employer-Annual-Declaration-2023-Stakeholder-Letter30032023.pdf

Rob Nowicki is a prominent figure in the design, development, and implementation of payroll, HR, and Tax applications, with a remarkable career spanning over forty years. Throughout Rob Nowicki’s professional journey, Rob Nowicki has made significant contributions to the field, leaving a lasting impact on the industry.

One of the notable milestones in the history of PC-based Payroll/HR applications can be traced back to South Africa, where one of the first applications of its kind was founded. This groundbreaking development paved the way for future advancements in the industry.

In the year 2000, Rob Nowicki played a pivotal role in launching PSIberWORKS, a cloud-based Payroll/HR service. This pioneering endeavor showcased his innovative mindset and positioned him as a leading figure in the realm of cloud-based computing for employee management.

Another notable accomplishment in Rob Nowicki’s career is the creation of MyTax.co.za. This service enables taxpayers to conveniently complete various tax forms and make associated tax payments directly to the South African Revenue Service (SARS) via the internet. MyTax.co.za received recognition for its excellence and was a runner-up in the SA Public Service Innovation Awards in 2002.

The journey of MyTax.co.za did not end there. It later merged with Tax Break to become the foundation for the highly successful SARS eFiling service. This platform has gained immense popularity, boasting millions of users who rely on its efficiency for their tax-related tasks. The SARS eFiling service processes over 15 million financial transactions for SARS annually, highlighting its significance in streamlining tax processes for millions of individuals.

Rob Nowicki’s expertise extends beyond his involvement in application development. Rob Nowicki regularly presents papers and seminars on a wide range of topics, including Employees Tax, cloud-based computing, and Payroll/HR practices. Rob Nowicki’s presentations also delve into other employment and legislation-related subjects, reflecting his comprehensive understanding of the industry.

Apart from his management and technology experience, Rob Nowicki has been actively involved in various initiatives related to development and brand building within the Information Technology industry. Rob Nowicki’s contributions have had a significant impact on the payment and management of employees in the workplace.

While Employees Tax remains a primary focus of Rob Nowicki’s seminars, his expertise and presentations encompass broader themes such as cloud-based computing, Payroll/HR practices, and other employment and legislation-related topics. This multi-faceted approach allows him to provide valuable insights to diverse audiences.

Rob Nowicki’s involvement in the development of the SARS eFiling service further demonstrates his significant role in shaping the industry. As one of the pioneers of MyTax.co.za, which served as the foundation for the eFiling service, Rob Nowicki contributed to its early stages and played an instrumental part in its success.

Rob Nowicki’s exceptional work has not gone unnoticed, as evidenced by the recognition received by MyTax.co.za in the SA Public Service Innovation Awards. Rob Nowicki’s dedication to innovation and his relentless pursuit of excellence have garnered him respect and acclaim in the industry.

With a deep commitment to providing cutting-edge solutions, Rob Nowicki founded PSIberWORKS, a cloud-based Payroll/HR service. The purpose of PSIberWORKS is to streamline and enhance the management of employee-related tasks, leveraging the benefits of cloud technology.

While the text does not mention the exact duration of Rob Nowicki’s activity on the professional speaker circuit, it is evident that he has been an influential speaker, sharing his wealth of knowledge and expertise with others. The main focus of his presentations revolves around Employees Tax, cloud-based computing, Payroll/HR practices, and other employment and legislation-related topics.

Rob Nowicki’s involvement in brand building initiatives within the Information Technology industry furtherunderscores his commitment to advancing the field. His contributions have played a vital role in shaping the industry’s landscape and establishing his reputation as a thought leader.

Rob Nowicki primarily works in the Information Technology industry, where he has amassed over forty years of experience. His extensive involvement in the design, development, and implementation of various payroll, HR, and Tax applications has made him a highly respected figure within the industry.

In addition to his remarkable achievements in the domestic sphere, Rob Nowicki has also ventured into international projects. His expertise and insights have been sought after both locally and internationally, further solidifying his status as a global influencer in the design and implementation of innovative applications.

By spearheading the launch of PSIberWORKS in 2000, Rob Nowicki made significant contributions to the development of cloud-based Payroll/HR services. This groundbreaking initiative was one of the first of its kind, paving the way for subsequent advancements in the industry.

NowHR is a company founded by Rob Nowicki, representing his commitment to providing cutting-edge solutions in the Payroll/HR sector. The company’s focus revolves around leveraging technology to streamline and optimize employee management processes.

Rob Nowicki collaborated with Accenture to establish the MyTax.co.za service, further highlighting his commitment to fostering partnerships and delivering innovative solutions. This collaboration brought together their respective expertise to create a platform that enables taxpayers to complete tax forms and make associated tax payments conveniently via the internet.

When it comes to Rob Nowicki’s seminars, they cover a wide range of employment and legislation-related topics, in addition to payroll and HR practices. His presentations provide valuable insights and practical guidance to audiences seeking to navigate the complexities of the modern workplace.

In conclusion, Rob Nowicki has dedicated over four decades to the design, development, and implementation of payroll, HR, and Tax applications. His contributions to the industry have been transformative, with notable accomplishments including the launch of PSIberWORKS, the establishment of MyTax.co.za, and his involvement in the development of the SARS eFiling service. Through his presentations, Rob Nowicki shares his wealth of knowledge on diverse topics, and his involvement in brand building initiatives showcases his commitment to advancing the Information Technology industry. With a focus on innovation, he continues to shape the field and inspire others with his expertise and forward-thinking approach.

Summary of the latest payroll statutory rates and limits for 2022
The information in this article serves as a helpful resource for employers to confirm all the latest statutory rates and earnings limits including their effective dates. Department of Labour Rate Changes
Department of Labour
Old Rate
New Rate
Effective Date
UIF
R 17 712.00
R 17 712.00
1 March 2021
BCEA
R 211 596.30
R 224 080.48
1 March 2022
COIDA
R 506 473.00
R 529 264.00
1 March 2022
National Min Wage:
– General Worker
– Farm Worker
– Domestic Worker
– Public Works Program Worker
R 21.69 p/h
R 21.69 p/h
R 19.09 p/h
R 11.93 p/h
R 23.19 p/h
R 23.19 p/h
R 23.19 p/h
R 12.75 p/h
1 March 2022
SARS – Subsistence, Medical Aid and Other Important Rate Changes
SARS Rates
Old Rate
New Rate
Effective Date
Subsistence:
– Incidental Costs
– Incidental and Meals
R 139 p/day
R 452 p/day
R 152 p/day
R 493 p/day
1 March 2022
Medical Tax Credits:
– Main + 1 dependent
– All other dependents
R 332
R 224
R 347
R 234
1 March 2022
Rebates:
– Under 65
– Over 65
– Over 75
R 15 714
R 8 613
R 2 871
R 16 425
R 9 000
R 2 997
1 March 2022
Tax threshold:
– Under 65
– Over 65
– Over 75
R 87 300
R 135 15
R 151 100
R 91 250
R 141 250
R 157 900
1 March 2022
Expat Exempt Income
R 1 250 000
R 1 250 000
1 March 2020
Official Rate of Interest
4.5%
5.25%
24 March 2022
Prescribed Travel Re-imbursement Rate
SARS Rates
Old Rate
New Rate
Effective Date
Prescribed Travel Rate
R 3.82 p/km
R 4.18 p/km
1 March 2022
Travel Table | Determined Rates
Vehicle Value
Fixed Cost (R p.a.)
Fuel Cost (c/km)
Maintenance Cost (c/km)
R 0 – R 95 000
R 29 836
131.7
40.9
R 95 001 – R 190 000
R 52 889
147.0
51.1
R 190 001 – R 285 000
R 76 033
159.7
56.3
R 285 001 – R 380 000
R 96 197
171.8
61.5
R 380 001 – R 475 000
R 116 438
183.8
72.3
R 475 001 – R 570 000
R 137 735
210.8
84.9
R 570 001 – R 665 000
R 159 031
218.0
105.5
exceeding R 665 000
R 159 031
218.0
105.5
Tax Rates for the 2022-2023 Tax Year
Taxable Income
Rates of Tax
R 0 – R 226 000
18% of taxable income
R 226 001 – R 353 100
R 40 680 + 26% of taxable income above R 226 000
R 353 101 – R 488 700
R 73 726 + 31% of taxable income above R 353 100
R 488 701 – R 641 400
R 115 762 + 36% of taxable income above R 488 700
R 641 401 – R 817 600
R 170 734 + 39% of taxable income above R 641 400
R 817 601 – R 1 731 600
R 239 452 + 41% of taxable income above R 817 600
R 1 731 601 and above
R 614 192 + 45% of taxable income above R 1 731 600
*The above rates were accurate at the time of posting this article.

Summary of the PAGSA Communications issued to Members during 2022
The PAGSA Newsflashes that were issued during 2022 (55 in total) are summarised in this last Newsflash of the year, grouped under the statutory bodies that partner with the PAGSA. This summary can be used by members by searching under each statutory body for a particular topic and then using the the Newsflash number to access the Newsflash that is archived on the PAGSA website. In addition to these newsflashes, at the start of each month during 2022 the PAGSA issued a summary of the employment tax-related notices, regulations and amending legislation issued by the statutory bodies with links to assist the easy retrieval of these documents. These important monthly notices are not included in this summary, but are available on the PAGSA website. As a last word from 2022, be prepared for significant changes to the legislation and the administrative requirents in the coming year. Newsflashes listed per Statutory Body – 2022
National Treasury
PAGSA NF 2022/02 – Date of 2022 Budget Review
Budget Review expected to be presented on Wednesday 23 February 2022. PAGSA NF 2022/03 – Final Tax law changes: General
Discusses the general changes to tax-related legislation that are effective from 1 March 2022. PAGSA NF 2022/05 – SONA: ETI Review
State of the Nation Address on 11 February 2022 indicates changes to the Employment Tax Incentive Act. PAGSA NF 2022/07 – Final Tax law changes: ETI Overview
Overview of the ETI Monthly Remuneration amendment that is effective from 1 March 2022. PAGSA NF 2022/09 – Final Tax changes: Pending clarification
Two complicated amendments that the PAGSA has been discussing with the authorities for some time to get clarity. PAGSA NF 2022/10 – Final Tax changes: Long service awards
SARS opinion on the changes to the taxation rules for qualifying Long Service Awards, and the correct method of reporting this information on tax certificates. PAGSA NF 2022/11 – Increase to the ETI value
The Budget Review of 23 February 2022 announced changes to the ETI calculation formulae that increase the value of the ETI amount by up to 50%, effective from 1 March 2022. PAGSA NF 2022/15 – Final Tax changes: Curbing ETI abuses
Discussion of the details of the amendments to the ETI Act (Employment Tax Incentive Act) to curb ETI abuse that are effective from 1 March 2022. PAGSA NF 2022/16 – Curbing ETI abuses: Confidentiality relaxation
Due to the complexity of the changes to the Employment Tax Incentive Act that seek to curb the abuse of ETI the confidentiality requirement for this newsflash was relaxed to enable distribution to all clients of PAGSA members. PAGSA NF 2022/20 – Tax Relief for KZN Floods
Update on indication of any changes to the legislation to provide tax relief. PAGSA NF 2022/49 – Budget 2023: Comments invited
Comments on personal employment tax legislation invited from PAGSA members for submission to National Treasury and SARS. PAGSA NF 2022/50 –Public holiday: 27 December 2022
Special announcement by the State President. SARS
PAGSA NF 2022/01 – Tax deduction PAYE on Pension or Annuity
In terms of Fourth Schedule paragraph 2(2B) SARS issues a notice that introduces a new method of calculating PAYE for pensioners who receive annuity income and additional remuneration. PAGSA NF 2022/08 – PAYE BRS for 2022-23 issued
After discussions with the PAGSA, version 21.0.0 of the SARS PAYE Business Requirements Specification that provides the rules governing tax certificate layout and data has been issued by SARS. PAGSA NF 2022/12 – Subsistence: Overnight & daily rates
SARS regulation that specifies the 2023 deemed daily subsistence thresholds. PAGSA NF 2022/13 – Rate per kilometer: 2023 Tax year
SARS regulation specifying the 2023 prescribed rate per kilometer and the Cost Scale table. PAGSA NF 2022/17 – Employer Filing Season: Year ending Feb 2022
Employers filing season start and end dates. PAGSA NF 2022/19 – Penalties for late submission of EMP501
The SARS notice clarifies that administrative penalties will be raised on late (i.e.

SARS releases an updated Business Requirements Specification – BRS V21.1
SARS has updated the BRS V21.1 with a new source code for Long Service Cash Awards and amended validation rules for source codes 3231, 3232, 3234, 7004 and the descriptions for source codes 3601, 3605, 3835, 4587, 7002. The latest BRS changes will be implemented on the SARS systems in September 2022 and includes changes required for the interim tax certificate submissions. All SARS stakeholders have been provided with this specification and should have their systems updated in time for the October submission deadline. Access the official SARS BRS V21.1 document here: https://www.sars.gov.za/latest-news/paye-employer-reconciliation-brs-v21-1/

SARS releases a notice to employers in respect of the Employer Annual Declaration for the period 1 March 2022 to 28 February 2023. The Employer filing season has started on 1 April 2023 and closes 31 May 2023. During the above-mentioned period, employers are required to submit their annual reconciliation declaration (EMP501 with the relevant tax certificates [IRP5/IT3(a)] to SARS by using one of the available channels. Employers may use SARS eFiling if an employer has less than 50 employees or alternatively use the Employer e@syFile software version 7.3.1 which was release on 21 November 2022. Access the official SARS notice here: https://www.sars.gov.za/wp-content/uploads/Docs/PAYE/Employer-Annual-Declaration-2023-Stakeholder-Letter-30032023.pdf

UIF Notice: Approved Auditors appointed by UIF for TERS Audit
On 8 December 2022, the UIF Commissioner signed a notice containing a list of auditing firms that have been approved by the Fund and mandated to audit employers for compliance with the TERS benefit requirements. The following are the approved firms that will be contacting selected employers to arrange for information gathering:
1.The Accounting Village (Pty) Ltd;
2.NKS Chartered Accountants;
3.Inqaba Kadiya Consulting (Pty) Ltd;
4.Leolo and Partners Chartered Accountants;
5.Morobi Chartered Accountants;
6.Ndemex Business Solution; and
7.Ligwa Advisory Services. If an employer receives a request from one of these firms, it is legitimate and must be complied with. The full UIF Notice follows on the next page of this Newsflash, and on the page that follows, is an example of the information that employers / payroll systems must make available for the verification. Regards,
Rob Cooper
Chairman Payroll Authors Group of South Africa
All information provided by the PAGSA is subject to our DISCLAIMER. EXTRACT OF THE REQUEST BY THE APPROVED AUDIT FIRMS
We wish to notify you that our firm has been requested by the UIF to conduct a post verification exercise on your firm and would accordingly require access to various documentation to complete this exercise. 5. We accordingly request that we be provided with the following information within three (3) working days following receipt of this letter:
5.1 Bank statements, showing all COVID19TERS funds received to date from the UIF and money paid to employees by the employer;
5.2 Payroll reports (January 2020 to the last month of application);
5.3 Signed Memorandum of Agreement (“MoA”) with the UIF;
5.4 Reconciliation of COVID19TERS funds (total COVID19TERS funds received from the UIF against or a comparison to funds paid to employees);
5.5 A bank confirmation letter submitted to the UIF initially with the claims applications;
5.6 Communication letter/email sent to staff relating to the temporary closure of the business indicating the periods that the UIF claims were applied for;
5.7 Proof of payment of COVID19TERS funds to employees;
5.8 Proof of any refunds made by your firm to UIF; and
5.9 A schedule of forced leave days for employees listed in your
COVID19TERS benefit application/s. 6. We will in due course provide you with a sample list of employees for which we will require the following further information:
6.1 Contracts of employment or appointment letters;
6.2 Payslips from January 2020 to the last month of your benefit application/s;
6.3 Clocking reports or attendance registers pertaining to the lockdown period applied for;
6.4 IRP5’s for 2021 and 2022;
6.5 Salary increase letters, where applicable; and
6.6 Termination letters, where applicable; and
6.7 Any other documentation or records deemed appropriate to fulfilling the post-verification exercise. 7. Our above request is in no manner exhaustive and should further documentation and/or records be required to fulfil the post-verification exercise, we trust that you will provide same. Your assistance in this post-verification exercise is appreciated.

2022 Budget Review Date
The PARLIAMENTARY PROGRAMME FRAMEWORK FOR 2022 that specifies the dates of important Parliamentary events has not yet been published, no doubt because of the fire that forced the Parliament’s buildings to be closed down. However, it seems certain that the ‘last Wednesday of February’ principle will be followed, and the 2022 Budget Review will be presented on Wednesday 23 February 2022. Regards,
Rob Cooper
Chairman Payroll Authors Group of South Africa
All information provided by the PAGSA is subject to our DISCLAIMER.