[Question] Payroll System

[anakin]

We don't have any employees at the moment, just three partners and some freelancers and outsource companies.

We paid freelancers full amounts of money as they will handle the tax on their hands.

Should we ask third party (VIP payroll) to handle partners' salaries?

Is it legal or allowed that we handle salaries by ourselves as long as we withold the correct amount of PAYE/SITE funds to be paid to SARS? That's what I have been doing.

Any thoughts? Even if we have employees...?

[Dave A]

Are you just a partnership, or are you a CC/company.

[anakin]

CC company equally shared by other two partners... three partners in total.

[Dave A]

re-reading the question, I'm wondering if I'm on the right track.

My original thinking:
If you are being paid to do work in the CC, you are an employee for tax purposes - and if any of you are earning over the threshold for a PAYE deduction (about R3500.00 per month from memory - so I sincerely hope so ), the CC must be registered for PAYE with SARS. The CC must deduct the PAYE due on your salaries and must pay it over to SARS each month.

But reading again:
Are you asking if you have to outsource the function of claculating and managing the payroll? Particularly for the members?
If so, then there is no problem with you (as a member) doing it yourself (fulfilling all the CC's duties in this regard). You don't have to outsource doing the returns just because you are in the mix.

[anakin]

PAYE

Thanks! Sorry that the question was not clear enough.

Yes, we are all working partners. We all are get paid for work we do for our company plus share in profits at the end of business year.

Glad to read that we don't have to oursource the function of calculating and managing the payroll. I put everything in order on monthly basis using excel document showing exactly how much PAYE withheld by the company and to be paid to SARS on behalf of partners (as employees). Hope that's fine.

I better register PAYE soon and pay all PAYE due to them. I thought we just pay SARS at the end of business year or every 6 months like VAT.

Thanks again!

[Dave A]

I better register PAYE soon and pay all PAYE due to them. I thought we just pay SARS at the end of business year or every 6 months like VAT.

I think you are thinking of provisional tax payments.
PAYE returns are monthly, I'm afraid. Best to get on it straight away.

[duncan drennan]

I better register PAYE soon and pay all PAYE due to them. I thought we just pay SARS at the end of business year or every 6 months like VAT.

Monthly by the 7th, i.e. you pay the PAYE/UIF for July by the 7th of August, or the last working day before the 7th. If the 7th is a Sunday, then PAYE must be paid by the 5th.

You must register for UIF via the department of labour, but you pay this over to SARS along with your PAYE. If your salary roll is over R500k then you also have to register for SDL (I don't know anything about SDL though).

Here are all the SARS forms for PAYE/SDL/UIF. It looks like you can even register online now.

[anakin]

Thanks!

My accountant said it is not necessary to register for UIF as three of us are all owners of CC company... UIF is only for employees.

We plan to do so as soon as we have employees... but I still don't understand as I don't see ourselves as laid-back shareholders. We all work with dirty hands.