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Did your employees reduce their contributions to retirement funds


Employee behaviour brought on by COVID-19 resulted in some unintended consequences that will greatly impact businesses and Payroll Departments in 2021. Payroll Managers will need to gear up for questions raised and issues faced by their employees.

Some potential challenges include:

  • Employees in foreign countries or those looking to emigrate. Have you adhered to the tax exempt remuneration limits? What happens to retirement fund payouts and what are the new rules on moving these funds abroad?
  • Home Office Expenses – claiming these expenses is very much on everyone’s mind, with so many employees working from home. There are however, many compliance and statutory pitfalls to consider.
  • How will South Africans pay for vaccines and recover from COVID-19 related debt and what is the associated impact on your Payroll?
  • Did your employees reduce their contributions to retirement funds and / or their Medical Aid Schemes in 2020 to stay on top of expenses and to increase take-home pay. What are the tax consequences and how will these reductions impact employees later on in the year ?.
  • Did you, or will you be offering low-interest loans, to be paid back over time, to assist employees through these troubled times, and if so have you considered the tax implications?

Don’t miss out on our Payroll Managers Tax Year End Virtual Seminar where we will unpack the 2021 Budget in some detail and prepare Business Owners and Payroll Managers for the consequences brought on by these unprecedented times.

The seminar will assist you in navigating your way around the 2021 Budget Speech and to do a practical health check on some of the key legislative changes that took place this past year, including:

  • Contributions to the Solidarity Fund.
  • Have you missed anything that can impact you when you’re doing IRP5’s?
  • What happens if an employee left the company during the tax year and there is a tax shortfall which is only picked up a few months into the new tax year?