• Reduce your stress levels by trusting Booysen Accountants with all your accounting and taxation needs. As a business owner, you usually have numerous issues to deal with at any given time. Not only do you have to ensure that the business is operating smoothly on a day-to-day basis, but you also have to manage the finances of the company and ensure that you remain compliant with the South African Revenue Service (SARS) at all times. It can all become a bit overwhelming at times and most employers simply don't have the resources to address many of these issues properly. A company is responsible for its own business tax, and also has to ensure that the various taxes and levies that affect the employees working at the company are paid diligently. With regard to staff, one of the documents that SARS requires an employer to submit is called an employer reconciliation declaration, also referred to as an EMP501. 

     

    An employer reconciliation is a detailed report of employees earnings at a company. The EMP501 has to be submitted twice in a financial year and an employer is tasked with ensuring the accuracy of this report. Employers are required to submit a monthly report, called an EMP201, on the various taxes and levies paid by employees. Deductions such as Pay-As-You-Earn (PAYE), Skills Development Levy (SDL) and Unemployment Insurance Fund (UIF) are collected by the company and paid over to SARS as part of the EMP201. However, this monthly report reflects only the total amount that is owed to SARS and does not reflect how much each individual staff member contributes towards the total. This is why a business is required to submit an EMP501 biannually. The employer reconciliation declaration is a much more detailed report that should indicate exactly how much each employee contributed towards the various deductions. 

     

    Companies are required by law to submit an EMP501 twice during the year of assessment and the submission deadline for the interim period, 31 October, is approaching very quickly. There are certain things that need to balance for your submission to be successful: your monthly EMP201 declarations need to add up to the total of the payments made to SARS, then your EMP201 payments must also balance with your IRP5/IT3(a)s generated. This means that your payments throughout the year need to be reflected accurately in the EMP501 for your submission to be successful. The whole procedure can become quite overwhelming and a business owner simply might not have the time or expertise to process all the information correctly. Put your mind at ease and trust Booysen Accountants to manage your financial affairs. We provide expertly tailored solutions to help you beat the deadlines and stay in good standing with SARS. Contact Booysen Accountants today on 012-740-7703 or email: This email address is being protected from spambots. You need JavaScript enabled to view it. to talk to one of our qualified accountants about the right package for you! 

     

  • If you are starting a company in South Africa, one of the first things that you need to consider is which business structure will suit your endeavour best. Each business structure has its advantages and disadvantages and understanding these can help a great deal when deciding on the structure that best suits your business.  

     

    Here arefive different types of business structures to choose from in South Africa: 

     

    Sole Proprietor:  

     

    A sole proprietorship is a business that consists of one individual, often referred to as a sole trader. This individual is responsible for the daily operation of the business and they are entitled to all of the profit. Setting up a sole proprietorship is very simple and no official paperwork is required to register the business.  

    The downside to a sole proprietorship is that the owner assumes all the risk for the company. There is no distinction made between the owner and the business, leaving the owner personally liable for any debts and obligations. 

     

    Partnership: 

     

    A partnership is a business structure that can have between 2 and 20 partners with a stake in the company. This type of business is very easy to establish, with partners coming to an agreement amongst themselves regarding the division of profit. 

    As with as sole proprietor, there is no distinction made between the business and the owners, making partners personally liable for the debts and obligations of the business. 

     

    Private Company: 

     

    A private company is often referred to as a proprietary limited (Pty Ltd) company. Up to 200 shareholders can be a part of this type of business structure, making it possible to generate a large amount of capital to run the business. A private company is seen as a separate legal entity and stakeholders in the company are not held personally liable for any debts incurred by the business.  

    One disadvantage of this structure is that the registration of a private company is more challenging than the business structures discussed previously. Furthermore, there are a large number of legal requirements that private companies need to consistently comply with.  

     

    Public Company: 

     

    A public company is a form of business that allows the company to trade its stock on a stock exchange. This means that any member of the public can become a shareholder by purchasing stock. This allows this type of business structure to generate large amounts of capital from various shareholders. Shareholders in a public company have limited liability and risk is spread out amongst shareholders. 

    The downside to a public company is difficult to set up and it can take a long time before the company is able to trade publicly. There are also many legal requirements that need to be met before the company can be registered. 

     

    Franchise: 

     

    A franchised business structure occurs when the owner of a company licences their business to another party, allowing them to operate under the franchise’s name. Franchised businesses usually have an established reputation, with systems in place to help the business function optimally. 

    This business structure is often very expensive to establish and owners have very little input into the way the business operates.  

     

    At Booysen Accountants, we understand that the many complexities surrounding the different types of business structures in South Africa can make registering your business a daunting task. Our qualified accountants will help you to choose the right business structure for your company and aid you throughout the entire registration process. Contact us on: (012) 740 7703 or email: This email address is being protected from spambots. You need JavaScript enabled to view it. to find out how we can help you!