Know your Accounting Jargon

If you’ve never had to do accounting for your business before, it can seem like an overwhelming task at first. Even though QuickBooks programs will streamline your workflow and make things easier to grasp, using them still requires some knowledge.

Understanding your payslips, payroll, and other templates means knowing what information to include in them. This means that, in terms of ‘accounting words’, or jargon, there are three fundamental terms and forms to know so that you can be sure to do your books correctly.

  1. PAYE

Pay-As-You-Earn (PAYE) is an employee tax which is deducted from salaries or earnings. Each time you get paid, your employer subtracts an amount based on  your tax bracket and pays it over to SARS. This is done because it’s much easier to pay small amounts every time you’re paid rather than a larger, annual lump sum.

In order to prove to SARS that these amounts have been paid, each employee receives what is known as an ‘IRP5 form’, which must be filled in to disclose the payments.

  1. UIF

The Unemployment Insurance Fund (UIF), is an allotted amount that gets put aside to support employees who:

  • Go on maternity leave
  • Are wrongfully dismissed
  • Are unable to work because of a medical condition

It also serves to compensate employees’ families, should they pass away unexpectedly.

  1. EMP201/EMP501

These are employee payment declaration forms which need to be submitted to SARS by your employer. The EMP201 is submitted monthly and the EMP501 is an annual submission. The amounts that should be stipulated on each form are:

  • UIF – Unemployment Insurance Fund
  • PAYE – Pay As You Earn
  • ETI – Employment Tax Incentive, only applicable to employers that are qualified for this benefit
  • SDL – Skills Development Levy, only applicable if the employer is registered

 

Stress-free Submissions

With QuickBooks, employers simply need to submit the correct data and the program does all of the  calculations for you. You can even submit your forms directly to SARS electronically via any of the software packages, to make things even easier for you.

 

Learn accounting jargon as you go so that you can easily use QuickBooks  for quick and efficient tax submissions.

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Personal Information
Where a party receives any personal information (“PI”) related to the other party, the party who receives the PI, will comply with and have adequate measures in place to ensure that its employees, agents, subsidiaries and representatives comply with the provisions and obligations contained in the Protection of Personal Information Act, No. 4 of 2013. Any PI pertaining to one party which is required by the other party, will only be used by that other party for the purposes of this contract and will not be further processed or disclosed without the written consent of the latter and the recipient of that PI will take all reasonable precautions to preserve the integrity and prevent any corruption or loss, damage or destruction of the PI. If and when the contract is terminated, each party will, save to the extent that it is required to do otherwise by any applicable law, erase or cause to be erased, all PI and all copies of any part of the PI relating to the other party”.