TaxTim says: 14 May 2013 at 13:09 Does she work full time for the employer? She should still be receiving a payslip or similar and an IRP5 at year end. Does the employer deduct tax/PAYE? |
Curious says: 14 May 2013 at 13:31 Hi Yes , she is an estate agent working on a commision basis. She has not been paid yet by here new employer and they say they will give her some sort of proof of payments but will be paying over any taxes on her behalf. |
TaxTim says: 14 May 2013 at 13:40 That is perfect, they will give her an IRP5 at year end along with monthly payslips. The employer will also withhold some tax and pay it over to SARS. When it comes time to complete and submit your tax return you will be able to use these documents to do so. |
Curious says: 14 May 2013 at 14:11 Sorry I ment to say they will not be paying any taxes over to SARS, they will pay her commision out in full. |
TaxTim says: 14 May 2013 at 15:09 The agency should be withholding at least 18%, if not more, PAYE from the amount paid out to your wife. Can she ask them for the reason they are not doing this? |
Curious says: 14 May 2013 at 15:29 They say that it is too much work and that they are not going to ans each agent needs to sort out there own taxes. Is this allowed? |
TaxTim says: 14 May 2013 at 16:15 If your wife only works for this agency then she could be regarded as an employee and her commission will be subject to employee's tax in which case they have a responsibility to withhold PAYE and pay it over to SARS and issue the correct documents to your wife. The other option is to make a payment each time to your wife and withhold 25% PAYE and pay that over to SARS, your wife will be responsible for paying any differences between that amount and her actual tax rate. Either way the agency needs to make some payment to SARS on her behalf. |