How to employ someone! Process explained!

What to do when you employ someone?

This video is part of the Starting a Business series, here I cover the following topics which you need to consider when employing someone.

PAYE
UIF
SDL
WCA
Inspections

Here are the links mentioned in the video
- PAYE spreadsheet - www.saaccountingnetwork.co.za/submit-paye-return.html
- Vanilla Payroll - www.vanillapayroll.com
- UIF forms - www.saaccountingnetwork.co.za/register-uif.html
- UIF registrations - www.smallbusinessaccounting.co.za
- SETA link - www.economic.gov.za/entities-external-links/list-of-setas
- Free employment contract - www.saaccountingnetwork.co.za/free-employment-contract.html

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PAYE
Once you become and employer you need to register with SARS within 21 days
Application can be done via e filing, once your business is registered you need to link the number to your e filing profile in order to file returns
The PAYE returns are due on the 7th of the following month, so the PAYE for March would be due by 7th April – or the last working day before the 7th , so if the 7th is on a Saturday or Sunday it needs to be filed by Friday before close of business
Late submission or payments will result in a 10% penalty plus interest

UIF
You need to register with the department of labour as soon as someone works more than 24 hours a month – not the same rules as PAYE
If you register for PAYE you are not automatically registered for UIF
To register you need to complete two forms – UI8 and UI19 and send it through to the department of labour and then you need to follow up on the registration
Alternatively you can get a company to register UIF for you which is faster but more expensive
If you are registered for PAYE then you will pay the UIF over together with PAYE to SARS, they then pay it over to UIF – when you register UIF they link the PAYE number
You need to register on U Filing – there you need to submit a return on a monthly basis, declaring who worked for you and what they earned so that they can allocate the UIF which they received
Once employment seizes your employee can go claim benefits

SDL
Once your payroll exceeds R500 000 per year then you need to start paying over Skills Development Levies to SARS
SARS in turn pays it over to the SETAs (the companies who administers the levy)
Even if you don’t pay SDL you musty still register with the SETAs
Here is the link to the website
www.economic.gov.za/entities-external-links/list-of-setas
They then do skills development – free training for businesses

WCA
WCA (workmen compensation act) is also known as COIDA (Compensation for Occupational Injuries and Diseases Act)
This is for injuries on duty
You need to register with them separately
WCA returns are due once a year, you need to make an estimate of your salaries for the coming year and based on that estimate they give you an invoice to pay, at the end of the year you need to declare your actual salaries which will either result in a debit or credit, but at the same time you need to do an estimate for the next year
If you are compliant you can apply for a “Letter of good standing”
If employees get injured on duty then you can submit a claim with the department

Видео How to employ someone! Process explained! канала SA Accounting Network