Increase to the National Minimum Wage Hourly Rates
Important national minimum wage information has been published in the following two Gazettes:
1.National Minimum Wage Commission Review Report [Gazette # 45649 on 17 Dec 2021]
2.National Minimum Wage Act Amendment – Increased Wage Rates [Gazette # 45882 on 7 Feb 2022].
Legislation Background to NMW Increases
Effective from 1 January 2019, the National Minimum Wage Act (NMW Act) provides for the national minimum wage rate requirements and related matters, and instructs that the minimum wage rates must be reviewed annually.
NMW Act Section 4(2)
Any minimum wage rate that is not reviewed regularly would soon fall behind inflation and cease to be relevant. The intention to change the rates on an annual basis is specified in section 4(2) of the NMW Act, and the responsible party is the National Minimum Wage Commission that is established and given responsibilities and duties in sections 6 to 14.
NMW Act Section 9
Section 9 sets out the composition of the Commission, as follows:
1.A chairperson appointed by the Minister
2.three members nominated by organised business
3.three members nominated by organised community
4.three members nominated by organised labour, and
5.three independent experts, who are knowledgeable about the labour market and conditions of employment, appointed by the Minister.
NMW Act Section 6
Section 6 puts a duty on the Commission to review the national minimum wage annually and make recommendations to the Minister on any adjustment of the national minimum wage rate. Note that “any” adjustment means that the Commission can potentially recommend an increase (this is normally the case), a decrease, or no change, to the NMW rate per hour depending on the Commission’s findings in its review. The final decision is made by the Minister.
NMW Act Section 7
Take note of Section 7. For the purpose of the annual review, the Commission must in general promote:
1.the medium-term targets referred to in section 11(d) (to set medium-term targets for the minimum wage rate)
2.the alleviation of poverty, and
3.the reduction of wage differentials and inequality.
When considering increases, the Commission must consider the following economic factors:
1.inflation, the cost of living and the need to retain the value of the minimum wage
2.wage levels and collective bargaining outcomes
3.gross domestic product
4.productivity
5.ability of employers to carry on their businesses successfully
6.the operation of small, medium or micro-enterprises and new enterprises
7.the likely impact of the recommended adjustment on employment or the creation of employment, and
8.any other relevant factor.
All the above are important economic factors, but arguably the seventh one is the most important – unemployment.
National Minimum Wage Rates – Increases
In a welcome acknowledgement of the economic role that payrolls play , the National Minimum Wage Commission has again made the change to the minimum wage rates effective from 1 March to align them with the start of the tax year.
Government Gazette No. 45882 issued on 7 February 2022 increases the National Minimum Wage rates that are specified in Schedule 1 and Schedule 2 of the National Minimum Wage Act with effect from 1 March 2022.
Hourly Minimum Wage rates for the Four categories of workers other than Learners
NATIONAL MINIMUM WAGE
Rate/hour
Rate/hour
Rate/hour
Rate/hour
Worker Categories
1-Jan-19
1-Mar-20
%
1-Mar-21
%
1-Mar-22
%
1
General workers
20.00
20.76
3.8%
21.69
4.5%
23.19
6.9%
2
Farm workers
18.00
18.68
3.8%
21.69
16.1%
23.19
6.9%
3
Domestic workers
15.00
15.57
3.8%
19.09
22.6%
23.19
21.5%
4
Public Works Program workers
11.00
11.42
3.8%
11.93
4.5%
12.75
6.9%
Note that in terms of section 4(3), the minimum wage rate in respect of workers in the extended public works program must be increased proportionately to the adjustment of the national minimum wage for general workers.
Weekly Minimum Wage rates for Learners in terms of Section 17 of the Skills Development Act
LEARNERS
Credits
Min
Min

Min

Min

Already
Wage
Wage
Wage
Wage
NQF Levels
Earned
1-Jan-19
1-Mar-20
%
1-Mar-21
%
1-Mar-22
%
1
Level
1 to 2
0 to 120
301.01
312.45
3.8%
326.51
6.9%
349.04
6.9%
2
121 to 240
601.99
624.87
3.8%
652.99
4.5%
698.05
6.9%
3
Level
3
0 to 120
301.01
312.45
3.8%
326.51
4.5%
349.04
6.9%
4
121 to 240
566.93
588.47
3.8%
614.95
4.5%
657.38
6.9%
5
241 to 360
928.11
963.38
3.8%
1 006.73
4.5%
1076.19
6.9%
6
Level
4
0 to 120
301.01
312.45
3.8%
326.51
4.5%
349.04
6.9%
7
121 to 240
602.05
624.93
3.8%
653.05
4.5%
698.11
6.9%
8
241 to 360
928.11
963.38
3.8%
1 006.73
4.5%
1 076.19
6.9%
9
361 to 480
1 354.51
1 405.98
3.8%
1 469.25
4.5%
1 570.63
6.9%
10
Level
5 to 8
0 to 120
301.01
312.45
3.8%
326.51
4.5%
349.04
6.9%
11
121 to 240
652.15
676.93
3.8%
707.39
4.5%
756.20
6.9%
12
241 to 360
975.75
1 012.83
3.8%
1 058.41
4.5%
1 131.44
6.9%
13
361 to 480
1 374.61
1 426.85
3.8%
1 491.06
4.5%
1 593.94
6.9%
14
481 to 600
1 755.84
1 822.56
3.8%
1 904.58
4.5%
2 036.00
6.9%
The table shows that all categories of learners have been granted a 6,9% increase from 1 March 2022 (the previous increase was 3,8% from 1 March 2020, and 4,5% from 1 March 2021).
Increases to Sectoral Determinations
The increase to the NMW rate impacts on wage rates set in sectoral determinations that are higher than the NMW.
These wage rates must be increased proportionally to the year-on-year adjustment of the national minimum wage and are specified in Gazette 45882 for sectoral Determination 1: Contract Cleaning Sector, and for sectoral Determination 9: Wholesale and Retail Sector.
The wage rates specified in these sectoral determinations are not less than the new minimum wage rate of R23,19. The detail can be found in the Gazette.
Important Definitions in the National Minimum Wage Act
Definition of ‘Worker’ in the National Minimum Wage Act
The BCEA defines an employee to be:
“any person, excluding an independent contractor, who works for another person … and who receives, … remuneration”
The NMW Act defines a “worker” by using the same definition but without the exclusion of independent contractors:
“any person who works for another and who receives, … any payment for that work whether in money or in kind.
This means that if the above definition is satisfied, it is possible that common law independent contractors can be workers in terms of the NMW Act definition and they must then be paid at least the national minimum wage.
Definition of ‘Wage’ in the National Minimum Wage Act
“Wage” is a different concept from ‘remuneration’ (‘wage’ is always ‘remuneration’ but amounts that are ‘remuneration’ are not always ‘wage’), and is defined in the BCEA as follows:
“wage” means the amount of money paid … to an

SARS Income Tax Return notice – Filing Season
SARS has issued the notice to be published in the Government Gazette relating to the “Returns to be submitted by persons in terms of Section 25 of the Tax Administration Act, 2011”.
Although this notice has not yet been published in the Gazette, it is expected to be published on 3 June 2022.
Summary
Individuals who received remuneration from one source and do not have any other allowances or benefits, only need to submit an income tax return of their total remuneration does not exceed R500 000 and PAYE has been deducted according to the prescribed tax deduction tables.
Income tax returns to be submitted before or on 24 October 2022, if it is not a provisional taxpayer.
Income tax returns to be submitted before or on 23 January 2023 if it is a provisional taxpayer using eFiling platform.
Although only a few points in the notice is mentioned above, the notice is hereto attached for your convenience.
Regards,
Rhona van Taak
Admin manager: Payroll Authors Group of South Africa
All information provided by the PAGSA is subject to our DISCLAIMER

Rhona van Taak is the admin manager at the Payroll Authors Group of South Africa

The following is the News flash 2023-16 published by the PAGSA on April 15, 2023
regarding the COID Earnings Threshold for 2023 (correction)

COMPENSATION FUND EARNINGS THRESHOLD FOR 2023/24

Towards the end of January 2023 the PAGSA contacted the Compensation Fund authorities to inform them that the COID Earnings Threshold for the 2023/2024 year of assessment that payrolls must implement in their systems from 1 March 2023 had not yet been published and to request that it be published urgently.

Gazette No. 48065 Published 17 February 2023

Gazette No. 48065 was then published on 17 February 2023 (signed on 13 Feb 2023 by the Director-General of the Department of Employment and Labour). This Gazette (Gazette No. 48065)
specified the COID Earnings Threshold for the 2022/23 year of assessment as well as the COID Earnings Threshold for the coming 2023/24 year of assessment, as follows:

“DEPARTMENT OF EMPLOYMENT AND LABOUR
NOTICE 1616 OF 2023

COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT, 1993 (ACT NO 130 OF 1993)

THE NOTICE ISSUED BY THE DIRECTOR-GENERAL UNDER COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT, 1993

I, ThobiIe Lamati, The Director General of Employment and Labour, hereby in terms of S83 (8) and S83 (2) (b) of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No 130 of 1993) as amended issue the following Notice:

a) The submission of the Return of Earnings (ROE) by employers for the 2022 Assessment Period (Financial Year 2022/2023) would be open from 1 April 2023 to 31 May 2023
b) A penalty of 10% would be charged for the late submission of the ROEs after the prescribed deadline.
c) An interest as prescribed by the National Treasury would be charged on the overdue account or payment made after 30 days of the invoice date.
d) It is the employer’s responsibility to notify the Compensation Fund of any change in particulars, such as a business ceasing to exist, a change in the nature of the business, a change in the physical address of the business, a change in a business’ email address, and so on, within 7 days.”

The two COID Earnings Threshold specified in this Gazette (Gazette No. 48065) were published in PAGSA Newsflash 2023-05 on 17 February 2023 as follows:
1. R 529 264 for 1 March 2022 to 28 February 2023
2. R 563 520 for 1 March 2023 to 28 February 2024.

Gazette No. 48187 Published 10 March 2023

On 10 March 2023, Gazette No. 48187 was published (signed on 13 Feb 2023 by the Minister of Employment and Labour) containing a notice that listed the “Increase in Monthly Pensions” over several pages. These are benefit payouts and are not of importance for payroll systems.

Sometime later, to everyone’s surprise, one of our PAGSA members pointed out that new COID Earnings Threshold were specified after the listing on the Monthly Pension Increases at the end of the Gazette (Gazette No. 48187 ).
The COID Earnings Threshold for 2023/24 specified in this Gazette (Gazette No. 48187 ) is R568 959 (specified in the previous Gazette (Gazette No. 48065) as R563 520).

This resulted in an exchange of emails between the PAGSA, the Fund, and the Department of Employment and Labour to determine:
1. Why two Gazettes were published with different earnings thresholds
2. Which of the two earnings threshold is the correct one for 2023/24.
The first question won’t be answered, but it has now been confirmed that the earnings threshold specified in the second Gazette No. 48187 is the correct one and must be used for 2023/24.

To confirm, the two earnings thresholds that must be applied in payroll systems are:
1. R 529 264 for 1 March 2022 to 28 February 2023
2. R 568 959 for 1 March 2023 to 28 February 2024.

COID
Earnings
Attached please find the “Return of Earnings” ROE guidelines which explains what is earnings for purposes of completing the ROE.
The COID Act uses ‘remuneration’ in its definition of ‘earnings’, being –
“… the remuneration of an employee at the time of the accident or the commencement of the occupational disease as calculated in this Act.”
Remuneration is not defined, but is “… calculated in terms of this Act.”. Section 63 that deals with the calculation of earnings, is of no help. It seems that the W.As 8 form that must be completed by employers for their annual return contains the most practical and up to date information to help us to find out what remuneration is.
The W.As 8 form states that ‘earnings’ are all payments that are made regularly, before any deductions, in cash or in kind, and to employees. It then lists a number of items that are included in earnings, and a number that are excluded, and qualifies this by stating that the list is not exhaustive.
Included in gross earnings are the following:
• overtime of a regular nature;
• bonuses of any kind;
• commission (UIF take note!);
• cash value of food & quarters, company car, free or cheap accommodation;
• travel and other allowances paid regularly;
• the employee’s package, excluding employer contributions such as medical aid;
• earnings/drawings paid to working directors and members.
Excluded from gross earnings are the following:
• payments of a reimbursive nature;
• overtime worked occasionally;
• payments for non recurring tasks that are not part of the employee’s normal duties;
• ex gratia payments;
• intangible fringe benefits such the medical aid benefit;
• special expenses such as subsistence and travel costs, lunch, meetings etc.;
• travel and other allowances paid occasionally;
• if a director’s remuneration is profit share, the director is not included by the Act.
Some comments on these inclusions and exclusions –
• The principle is that regular items are included and irregular items are excluded;
• Another principle is that tangible (things you can touch) payments in kind (benefits and employer contributions) are included; intangible payments in kind are excluded;
• The inclusion of travel and other allowances paid regularly is in conflict with the labour law principle that allowances, whether regular or not, are payments to allow work to take place and are not included in an employee’s BCEA remuneration;
• One can only assume that all employer contributions are excluded, not only those made to a medical aid. Again, this in conflict with the BCEA, which includes all these ‘payments in kind’ to benefit and retirement funds into BCEA remuneration.
Earnings up to the maximum of the COID limit must be declared per employee at the end of each year (February), and this maximum earnings amount is included in the totals on the W.As 8 return form.
The definition of remuneration for the CF will in the future be the same as the definition of remuneration for UIF, with the same exclusions, except that commission is excluded from UIF but will be included for CF. The COID Amendment Bill is final but has not yet been promulgated, so it is not yet in effect (maybe sometime in 2023?). So currently we must still use ‘earnings’ while knowing that ‘remuneration’ is around the corner.
When ‘remuneration’ replaces ‘earnings’ down the line (with the promulgation of the Amendment Bill), it will be a radical change. Employers will be informed that it is a radical but necessary change, and their assessment could go either up or down in the future depending on the circumstances.
Also note that the fund has recently changed the ‘risk’ percentages per sector type (in many cases reducing the percentages) therefore a lower assessment value.
Tips
1. Be consistent:
Recommend the same thing for all of your clients
2. Don’t change now:
Unless there is good reason, don’t change from what you have been advising in the past. Keep doing what you have been doing unless you are certain that it is incorrect.
3. This last point is for you to decide.
Knowing that remuneration will replace earnings at some stage in the future, if you are uncertain of whether a remuneration type is ‘earnings’ or not, consider including it now as ‘earnings’ if it is currently ‘remuneration’. Then you will be moving in the right direction.

Employer
The Occupational Injuries and Diseases Act defines an employer as:
“any person, including the state, who employs an employee, and includes –
• any person controlling the business of an employer
• if the services of an employee are lent or let or temporarily made available to some other person by his employer, such employer for such period as the employee works for that other person
• a labour broker who against payment provides a person to a client for the rendering of a service or the performance of work, and for which service or work such person is paid by the labour broker.”
This definition, as in the Basic Conditions of Employment Act, is dependent on the existence of an employee. Further –
1. The first bullet brings in the concept of representative employers as in the Fourth schedule.
2. The second bullet seems to specify that where a ‘casual’ arrangement has been made for an employee to work for another employer, then the employer where the employee works becomes the responsible employer.
3. The third bullet provides that a labour broker is the employer of a worker supplied by the labour broker to a client and is responsible under the Act for that worker.
Employee
An employee is defined as:
“ … a person who has entered into or works under a contract of service or of apprenticeship or learnership, with an employer, … and whether the remuneration is calculated by time or by work done, or is in cash or kind, and includes:
• a casual employee employed for the purpose of the employer’s business;
• a director or member … who has entered into a contract … in so far he acts within the scope of … such contract;
• a person provided by a labour broker … for the rendering of a service or the performance of work, and for which … such person is paid by the labour broker;
• in the case of a deceased employee, his dependants, …”
Excluded as employees are:
• persons undergoing military service or training
• members of the Permanent Force while defending the Republic
• members of the Police Force while defending the Republic
• a person who contracts for the carrying out of work and himself contracts other persons to perform such work
• a domestic employee in a private household.
Being an Act administered by the Department of Labour, one can safely assume that the reference to working under “… a contract of service …“ as opposed to a contract for services, is intended to exclude labour law independent contractors. See the paragraph which deals with contracts of service in the BCEA Chapter of this manual.
Learners working in terms of a learnership agreement are specifically included, irrespective of whether they have an employment contract or not.
Incorrect classification
Where an employer is incorrectly classified for COID purposes due to the online registration functionality which do not allow the correct sub-class selection, the employer may completed the attached CF-1B (Application for the Change of the Nature of Business) form and mail it to [email protected] and [email protected] for correction.
Evidence should also be forwarded with the completed forms.
The industry classifications are also attached in order to ensure that the correct sub-class is selected.
Incorrect assessment rate applied by COID
Where an incorrect assessment was applied by the COID Commissioner due to the incorrect classification of the employer due to the online registration functionality which do not allow the correct sub-class selection, the employer may completed the attached CF-1B (Application for the Change of the Nature of Business) form and attached CF-2B (Application for Revision of the Assessment Form) and mail it to [email protected] and [email protected] for correction.
Evidence should also be forwarded with the completed forms.
The industry classifications are also attached in order to ensure that the correct sub-class is selected.

The following is the News flash 2023-01 published by the PAGSA on January 29, 2023 regarding the Budget Review date

2023 Budget Review Date

The Budget Review is an annual event that takes place in South Africa to present the country’s budget for the upcoming year. It is typically held on the last Wednesday of February. However, there are certain circumstances in which the Budget Review date may be adjusted.

In situations where the Budget Review date is very close to 1st March, there is limited time for payroll suppliers to implement the necessary changes that are legally effective from 1st March. To address this issue, a request has been made in the past to present the Budget on the second last Wednesday of February. This request has been granted, likely with the support of other parties involved.

For the year 2023, the latest PARLIAMENTARY PROGRAMME FRAMEWORK has been released, confirming that the 2023 Budget Review will be presented on Wednesday 22 February 2023.

It is important to note that all information provided by the Payroll Authors Group of South Africa (PAGSA) is subject to their DISCLAIMER.

The following is the News flash 2023-14 published by the PAGSA on April 5, 2023
regarding the Employer Filing Season for Year ending 28 February 2023.

Employer Filing Season: Year ending February 2023

The South African Revenue Service (SARS) has announced the details for the 2023 Employer Annual Filing Season. This filing season will cover the period from 1 March 2022 to 28 February 2023.

The filing season will begin on 1 April 2023 and will end on 31 May 2023. During this time, employers are required to submit their Annual Reconciliation, which includes the EMP501 and Tax certificates.

It is important for employers to ensure that their Annual Reconciliation is submitted on or before 31 May 2023 to avoid any penalties or late filing fees.

To access the notice issued by SARS regarding the 2023 Employer Annual Filing Season, please click on the following link: https://www.sars.gov.za/wp-content/uploads/Docs/PAYE/Employer-Annual-Declaration-2023-Stakeholder-Letter-30032023.pdf

Dear Stakeholder

EMPLOYER ANNUAL DECLARATIONS (EMP501): 1 APRIL TO 31 MAY 2023

We thank all the compliant employers who submitted accurate reconciliations on previous declarations and made the required payments, your contribution continues to support and contribute to our countrys economy and prosperity

The South African Revenue Service’s (SARS) higher purpose is to enable the government to build a capable state to foster sustainable economic growth and thus promote social development that serves the wellbeing of all South African citizens. To achieve this, we are committed to improving our service offering and, in this way, provide clarity and certainty and make it easier to help you meet your tax obligation.

Employees tax compliance starts with the Employer
This year, the Employer Annual Declaration opens on 1 April and closes on 31 May 2023. During this period, employers are required to submit their annual reconciliation declarations (EMP501 ) that reflect accurate and tie latest payroll information about thew employees, monthly employer declarations (EMP201) for PAYE, UF and SDL, payments made (excluding penalties and interest paid); and employee tax certificates (IRP51T3(a)s generated, covering the full tax year from 1 March 2022 to 28 February 2023.

We help you comply
To make it easier for you to reconcile, easily and conveniently we would like to draw your attention to essential information that you need to know:
– Before submitting the annual EMP501 for 2023, employers must submit all outstanding monthly declarations (EMP201) and annual reconciliations (EMP501 ), as well as make all payments due.
– Employers, Tax Practitioners and Payroll Administrators need to download the latest Employers e@syFile version. This can be done via SARS eFiling at www.sarsefilinq.co.za.
– Where employees are not registered for income tax purposes, employers must register them using Single (“Individual ITREG”) and bundle IT Registration (“Bundled ITREG”) for existing tax numbers as well as new registrations available on e@syFiIe TM
– First-time job seekers should be directed to register for income tax via eFiling or on the SARS MobiApp.

Accuracy and on-time filing are critical
The employer reconciliation process is an important first step in the wider income tax reconciliation process that enables SARS to issue individuals with an auto-assessment or a pre-populated income tax return (ITR12). Therefore, incomplete, or inaccurate information will make it difficult for your employees’ ability to meet their tax obligations.

It is important for employers to issue IRP5/lT3 certificates to employees on time, as they will need the certificates to file their own income tax returns during tax season (if required).

Consequences for non-compliance.
If an employer submits the EMP501 late, administrative penalties will be charged. The penalty will equal 1% of the year’s PAYE liability, which will increase each month by 1% point up to 10% of the year’s PAYE liability. Furthermore, an employer who, wilfully or negligently, fails to submit an EMP201 or EMP501 return to SARS is guilty of an offence and is liable, upon conviction, to a fine or imprisonment for a period of up to two years. Please let’s act to avoid this state of affairs.

What constitutes a criminal offence?
An employer is guilty of an offence and subject to a fine or imprisonment for a period not exceeding two years, where, amongst other offences, fails to:
– Deduct employees’ tax from remuneration or pay tax to the Commissioner within the prescribed period
– Deliver IRP5 or IT3(a) to employees or former employees within the prescribed periods.
– Uses employees’ tax deducted or withheld for purposes other than the payment of such amount to the Commissioner.
– Apply for registration as an employer.

Submission channels
– Employers with less than 50 employees can use either SARS eFiling or SARS e@syFileTM. If the employer has 50 or less IRP5/lT3(a) certificates, a tax certificate file can be generated from the payroll system and this file can be imported into eFiling.
– Employers that file EMP501 for more than 50 employees must use the Employer e@syFileTM
– Any amendments to, or cancellation of, or capturing of certificates can be done on eFiling, if the total number of certificates does not exceed 50.

Enhancements to e@syFile TM Employer
Maintenance and general enhancements, such as software version upgrades, will be made.

Status of Submission
Employers must always check the status of submissions to ensure their EMP501 has been successfully filed at SARS.

Employer Records
The employer must keep a register that contains personal and financial particulars of each employee. This register must be maintained in such a format, including any electronic form, or as may be prescribed by the Commissioner The records must be kept for, at least 5 years, following the submission of a tax return or other data to SARS. The employer must keep such records and make them available for scrutiny by the Commissioner.

More information
For information on the completion of manual certificates, please consult the guides e@syFile TM Employer User Guide or A Step-by-Step Guide to the Employer Reconciliation Process under Businesses and Employers page on the SARS website at www.sars.gov.za.

Sincerely,

THE SOUTH AFRICAN REVENUE SERVICE March 2023

The following is the News flash 2023-06 published by the PAGSA on February 21, 2023 regarding the BCEA Earning threshold increase

BASIC CONDITIONS OF EMPLOYMENT ACT: EARNINGS THRESHOLD INCREASE

The Basic Conditions of Employment Act (BCEA) is a South African legislation that sets out the minimum employment conditions for workers in the country. It covers various aspects such as working hours, leave, remuneration, and termination of employment.

One important aspect of the BCEA is the earnings threshold, which determines whether an employee is entitled to certain benefits and protections under the Act. The Minister of Employment and Labour has the authority to adjust this threshold from time to time.

On 20 February 2023, the Minister issued Government Gazette Number 48092 to increase the BCEA earnings threshold. This means that employees who earn below a certain amount are considered to be covered by the Act, while those who earn above this threshold may not be entitled to certain benefits.

The new earnings threshold, effective from 1 March 2023, is set at R241,110.59 per annum. This is an increase from the previous threshold of R224,080.48 per annum.

It is important to note that the concept of ‘BCEA earnings’ remains unchanged. The definition of BCEA earnings is provided in the notice issued by the Minister and is specifically used for the application of this threshold. In simple terms, BCEA earnings refer to remuneration as defined by the BCEA, but excluding achievement awards such as commission, bonuses, and overtime.

This information is provided by the Payroll Authors Group of South Africa (PAGSA), represented by Chairman Rob Cooper. It is important to note that all information provided by PAGSA is subject to their disclaimer.

In summary, the Basic Conditions of Employment Act (BCEA) is a legislation that sets out the minimum employment conditions in South Africa. The earnings threshold, which determines the coverage of the Act, has been increased to R241,110.59 per annum, effective from 1 March 2023. BCEA earnings refer to remuneration as defined by the BCEA, excluding achievement awards and overtime.

The following is the News flash 2023-04 published by the PAGSA on February 13, 2023 regarding the SARS Webinar: Tax Directives 16 Feb

SARS Notice: Tax Directive Webinar

The South African Revenue Service (SARS) is hosting a webinar on Tax Directives and invites taxpayers, tax practitioners, and fund administrators to attend. A tax directive is an official instruction from SARS to deduct tax at a specific rate, ensuring fair taxation for larger or irregular payments.

It’s important to note that an approved tax directive is only valid for the tax year or period it was applied for. SARS aims to provide clarity and simplicity in meeting tax obligations, and this webinar aims to educate taxpayers on the Tax Directives process.

The webinar will cover the following topics:
– Types of Tax Directives
– Tax Directives applied for by Tax Practitioners on behalf of Individuals and Employers
– Tax Directive application process
– Timelines for Tax Directive applications
– Updates and changes to Tax Directives
– Accessing Tax Directives via eFiling

Details of the webinar are as follows:
– Theme: Tax Directives
– Date: Thursday, 16 February 2023
– Time: 17:00 – 19:00
– Platforms: Zoom and YouTube

To register for the webinar, please visit the following link: https://sars-gov-za.zoom.us/webinar/register/WN_pmIvvysnSzuBqvvvyLV9lQ
Meeting ID: 989 3621 1798
Passcode: 334253

Upon registration, you will receive a confirmation email with instructions on how to log on to the webinar. The webinar will be recorded and posted on the SARSTV YouTube channel for future reference.

For any questions regarding Tax Directives, please email [email protected].

Issued by: Taxpayer and Trader Education and Policy and Procedure Enforcement

The following is the News flash 2023-10 published by the PAGSA on March 6, 2023 regarding the Tribute to Dave Teron

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 Rob Cooper in particular, thank you Dave for your massive contribution to payrolls over the years.

Rest in peace.