Nwanda Internal News (September/October 2016)

 

DAYS

Awesome Reward goes to:

Work performance:
Rafeeah Razak – For being a super junior
Roald van der Heiden – Embracing the role of a senior clerk

Prego Braai – 2nd September 2016 @ Nwanda Café:

Thank you for the super turn out of staff for our first Prego Braai.

Warm welcome to our new Nwanda team members:

For those unsure of the new faces in the office, a quick photo guide:

Farewell to a staff member:
We bid farewell to the following staff members:
 Ncamiso Simelane
 Sifiso Tshabalala
We wish them success in their future endeavours.

 

5 immunity-boosting foods you want to be eating

 

Employer Interim Reconciliation

In the past SARS required the Employer Reconciliation to be done every twelve months. A few years ago SARS introduced the Employer Interim Reconciliation in addition to the annual Employer Reconciliation.

The Employer Interim Reconciliation have the same requirements as the Employer Reconciliation, with two exceptions:
1. The Interim Reconciliation is completed for six months only, and
2. The tax certificates generated during the Interim Reconciliation are only submitted to SARS and not distributed among employees, except in certain circumstances as set out in the table below.

The major benefit of performing the Employer Interim Reconciliation is that it decreases the pressure on employers with their Employer Reconciliation at the end of the tax year, as only six months have to be reconciled for each reconciliation.
The table below shows the major differences between the Employer Interim Reconciliation and the Employer Reconciliation for the tax year commencing 1 March 2016, followed by some tips on how you can prepare for the next Employer Interim Reconciliation.
table

Tip 1: Start preparing now
Get a jumpstart on the reconciliation process by starting to confirm employees’ personal details. Draw up a confirmation form of personal details needed to complete employees’ IRP5/IT3(a) tax certificates. These forms should be completed and signed by each employee and kept in the Employer Interim Reconciliation file as part of the working papers. The details that must be confirmed with employees are the following:

1. First two names and surname
2. Date of birth
3. South African ID number or Passport number and name of country which issued the passport
4. Income Tax reference number
5. Contact details:
• Postal address
• Residential address (including postal code)
• Cellphone number
• Home telephone number
• Work telephone number
• Fax number
• E-mail address
6. Banking details:
• Bank account number
• Bank account name
• Type of account e.g. savings or cheque
• Branch name
• Branch number
• Indication of whether it is their own bank account, a joint bank account or a third party bank account

Tip 2: Use the latest version of easyFile
Make sure that you use the latest version of easyFile when doing the Employer Interim Reconciliation as well as the Employer Reconciliation, as reconciliations and tax certificates done on previous versions of easyFile software will be rejected by SARS. Check the SARS website for updates and the most current version of easyFile software.

Employer reconciliations don’t necessarily need to be a nightmare. Some timely preparation will go far to make the reconciliation process smoother and less stressful.

If the above article raised any questions in your mind please do not hesitate to contact our office. We look forward to the opportunity to assist you.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

Reference List:
• www.sars.gov.za

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Employment Equity 2016

Who must report in 2016…

• All designated employers with 50 or more employees.
• Employers with fewer than 50 employees who are designated in terms of the turnover threshold applicable to designated employers (Schedule 4 of the Employment Equity Amendment Act No. 47 of 2013).
• Employers who have become newly designated on or after the first working day of April, but before the first working day of October, must only submit their first report on the first working day of October in the following year.
• Employers who voluntarily wish to comply in terms of section 14 of the EE Act.
• All designated employers must report annually irrespective of their size.

Useful Advice

• Manual and posted EE Reports will not be accepted after 3rd October 2016.
• EE Reports will not be accepted by fax or email.
• Check for incomplete sections or sections with errors.
• In the case of Online submission, complete and finalise corrections in the EE Reports by no later than 15 January 2017.
• Do not forget to press the submit button when your report is complete.
• No Changes are allowed after submission.
• A copy of the EEA2, EEA4 and the acknowledgement letter will be emailed to you after successful submission.
• If you have not received the EE reports and acknowledgement letter in your Inbox, please check in the Junk mail/Spam folders (Move mail from the Junk mail/Spam folders to Inbox before opening the attachments).

The Commission for Employment Equity Annual Report 2015-2016 make for interesting reading, enclosed please find the 16th CEE Annual Report.

EE threshold

The Employment Equity (schedule 4) sector threshold that determines whether a company is a designated employer has been revised. A designated employer is any employer employing more than 50 employees. If there are less than 50 employees, the schedule will apply.

Sector or subsectors in accordance with the Standard Industrial Classification
Agriculture [R2 m] R6 m
Mining and Quarrying [R7,5  m] R22,5 m
Manufacturing [R10 m] R30 m
Electricity, Gas and Water [R10 m] R30 m
Construction [R5 m] R15 m
Retail and Motor Trade and Repair Services [R15 m] R45 m
Wholesale Trade, Commercial Agents and Allied Services [R25 m] R75 m
Catering, Accommodation and other Trade [R5 m] R15 m
Transport, Storage and Communications [R10 m] R30 m
Finance and Business Services [R10 m] R30 m
Community, Special and Personal Services [R5 m] R15 m

Whilst the above may no longer apply to some companies if they employ less than 50 employees and turnover may now be less. This may not be the case for B-BBEE Scorecard compliance. The B-BBEE turnover threshold has also been revised, excluding industry-specific-sector codes.

• Exempted Micro Enterprises from R5 million to R10 millionWhilst the above may no longer apply to some companies if they employ less than 50 employees and turnover may now be less. This may not be the case for B-BBEE Scorecard compliance. The B-BBEE turnover threshold has also been revised, excluding industry-specific-sector codes.

• QSE (Qualifying Small Enterprise)from R5-35 million to R10- R50 million
• Generic from R35 million to R50 million

If your company is classified under this business sector and it employs less than 50 employees, you will need to do a voluntary compliance for EEA to comply with the BEE Requirements.

(http://www.saipa.co.za/articles/391726/employment-equity-threshold-increased)

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)