Dear Reader

I mentioned last week how the Labour Minister is taking no prisoners when it comes to complying with the Employment Equity Act. You’ve got just over a month to ensure your report and plan is perfect! I don’t want you to get into trouble, and I certainly don’t want you to pay the R900 000 fine

Fulvia’s labour tip for the day

Yesterday our resident tax editor, Fulvia went to a tax conference and she couldn’t wait to get back to tell me how it would affect my labour readers too.

You’re probably wondering what exactly you need to know from a tax conference…I did. But, it seems Fulvia’s full of valuable nuggets of information!


Here’s what she had to say

The speakers were talking about the first bi-annual employer reconciliation (which is happening in August this year).

You see, in February, employers had to submit their returns for tax year-end. And now in August they do a reconciliation (fondly called a recon…), to show SARS that their finances and records are all accurate. And what they were earning, paying and claiming in February still stands now in August.


As part of this, SARS has made it compulsory for employers to do a few things:

1.    Register all employees for a tax reference number. Regardless of how much they earn. SARS wants to keep track of every person who’s employed… In August, employers who use e@syFile will be able to do a once-off bulk registration. So each company will be able to submit an ITREG form for each of its employees, and SARS will register those employees who aren’t already registered. It’ll also confirm the correct reference number for those of us who are already on its database.

2.    Give the bank account number, physical home address and business contact number for every employee (except those who are paid cash, and don’t earn much at all….like the cleaner who comes in once a week). 

So the question is: What is your HR division doing to make this process more accurate? And how will it address this going forward? How will it change the forms it gives new employees, to make sure that the company is collecting the right info, for each employee, from the start?

You have to keep the DoL and SARS happy!

Now, you’ll remember a few weeks ago Susan Stelzner spoke about the Protection of Personal Information Act that’s coming into effect. This will definitely have an impact on the way you collect employee information! You’ll have to carefully manage how you gather and use your employees’ information…so your company can satisfy this Act and SARS!

You don’t have to worry if you’re a subscriber to The Labour Law for Managers Loose-leaf service, as we’ll make sure that you know exactly what the Act entails and give you practical guidance to do things properly. But perhaps you should worry if you’re not a subscriber, you can’t be certain what you’re doing is 100% legally correct. Don’t take the chance, subscribe now. 

Until next time

Sarah-Jane Bosch
Managing Editor

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