Pay Solutions is a payroll management company that offers payroll solutions to organisations of all sizes regardless of Industry. Pay Solutions offer a range of services such as payroll processing, tax filing, direct deposit, time and attendance tracking, and HR compliance. Their services are geared to help businesses save time and money by outsourcing their payroll administration.
Several types of salary taxes which employees are required to pay exist in South Africa, which are included in the lists below:
- Income Tax: This is a tax on the income earned by an individual. It is calculated based on an incremental tax system, meaning that the more you earn, the higher the percentage of tax you pay. The tax bracket in South Africa in terms of income tax rate, ranges from 18% to 45%.
- Pay-As-You-Earn (PAYE) Tax: This is a tax that is deducted from an employee’s salary by their employer and paid to the South African Revenue Service (SARS) on their behalf. It is based on the employee’s income and the tax tables provided by SARS and is a monthly deduction which is dependent on certain payroll factors which may vary month-to-month.
- Unemployment Insurance Fund (UIF) Contributions: This is a mandatory deduction from any employee’s salary, regardless of sector or industry, that is paid to the UIF. Any employee who works for more than 24 hours a month, for a single or multiple employees must be registered by the employer to submit monthly payments to the fund. Both the employee and the employer are required to submit payments of a matching amount to the fund. The fund provides short-term financial assistance to employees who lose their jobs or are unable to work due to illness, maternity leave or when a permanent position or contract is terminated by the employer.
- Skills Development Levy (SDL): This is a tax that is paid by employers to SARS to fund skills development in the country. It is calculated as a percentage of the total salary expense of the employer.
- Medical Aid Tax Credits: This is a tax credit that is available to individuals who contribute to a registered medical aid scheme. This tax credit is deducted from the individual’s income tax liability and is based on the number of dependents covered by the medical aid scheme.
Payroll experts are professionals who specialise in managing and processing payroll for businesses. Besides being knowledgeable about payroll legislation, regulations, tax codes and compliance requirements, they also help businesses ensure that their payroll is accurate and compliant with those legal and regulatory requirements. Pay Solutions employs a highly diverse team of dedicated payroll experts with the experience and expertise required to assist the diverse client-base which Pay Solutions participates with.
If you are considering outsourcing your payroll management, working with a payroll experts Pay Solutions is a viable, cost-effective and business enhancing option. They offer the capacity to streamline your payroll processes, ensure compliance with legal and regulatory requirements, and free up time for you to focus on other aspects of your business.