SARS and PAYE

SuzLombard

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Joined
Mar 20, 2014
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Location
Cape Town
hi,
I have a question. My employer is not VAT registered, matter of fact the business is not yet registered. we are almost a year old. My PAYE and UIF gets deducted but not paid over.
I need to know what you would suggest I do. I asked to get reimbursed by her and she said that is okay, but then I need to sign a new contract which makes me a contractor and would not benefit from normal bonuses and salary increase?
 
Don't ask for a refund, ask for an IRP5 (Proof that you pay UIF & PAYE). It will be your employers problem to sort out the payment between them and SARS including penalties.
 
Even if he deducted TAX and has not passed it on to SARS
You are liable for the amount
so get it sorted out fast
 
I had the same problem some years back, I ended up getting fined and having to pay all arrears. Company closed down, no tracing the directors with my meagre resources at the time. I was well and truly f...ed over.
 
Slowmow is 100% correct.
Also, them saying you need to convert to contractor is absolute BS. Its just a powerplay tactic. This is not legal. They would still be liable to deduct tax from you. Only a tax directive can absolve them from deducting.
To be honest, this is a very dodgy business practice they are employing or they are totally clueless with regards to the countries tax / commercial laws.
Do you have a monthly payslip showing the deduction and does the payslip have your tax reference number on it? This important proof that they are being dishonest and not you when it comes to interacting with SARS.
 
Dude, get on this ASAP and ask for an IRP5. If they cant provide, phone SARS.
 
Don't ask for a refund, ask for an IRP5 (Proof that you pay UIF & PAYE). It will be your employers problem to sort out the payment between them and SARS including penalties.

This, in writing !
 
i read you guys comments but let me add another dimension. im involved with companies that have similar issues. when companies start, they have to then undergo a whole bunch of registrations. and while it sounds simple enough. it takes a couple months to get the company registration docs finalized, only then can you start the process with sars. dealing with sars is a nightmare. can take weeks but also can take about 6 months. not to mention the time it will take the accountant to prep and do the registration. if the accountant is really slack thats another half year with the registration sitting on his desk.

the guys advising you to ask for an IRP5... this may not help if the employer doesn't have his sars paye registration yet.

your employer may have misunderstood your requests for a refund. you aren't allowed any refund from your employer. all moneys deducted from you will still have to be paid over to sars. even if the registration is 2 years since they started deducting, it will be back dated and the funds paid over. your employer is offering you a different position. one which i have come across many a people that have taken up. being a "consultant" has its upsides and its downside as well.

my suggestion to you is. ask your employer what is the progress with the sars registration. if they want to know why you are asking, state that your 2013 tax return is overdue, and your salary and taxes aren't reflecting. (act intelligent) and state that you realize that if they not yet sars registered, they cant issue an irp5. and with out an IRP5, you cant submit your personal tax. your accountant has advised that failure to submit tax returns, sars issues penalties of R250pm. so you are get getting nervous as you don't want to start incurring the penalties.

state that, gauge their response and take it from there.
 
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