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Many businesses are often unaware of the full extent of the compliance requirements they must adhere to. Even when they do have some awareness, the process can be expensive and demand significant resources.
Small and medium-sized businesses, in particular, face the greatest challenges in achieving compliance due to limited resources and the absence of well-defined HR practices that clearly outline employee roles and key performance indicators. Typically, business owners primarily focus on expanding their enterprises and entrust their employees with handling administrative and compliance tasks. As a result, nobody within the organization possesses a precise understanding of the necessary compliance obligations, the methods for achieving compliance, or the deadlines for submitting required documents. Unfortunately, this lack of awareness often becomes apparent only when it is too late.
Here is a compilation of the standard compliance requirements that businesses should adhere to (excluding industry-specific mandates like CIDB, etc.):
| COMPLIANCE REQUIREMENT | WHO NEEDS TO COMPLY? | HOW TO COMPLY | WHEN IS IT REQUIRED? | WHAT ARE THE CONSEQUENCES OF NON-COMPLIANCE? |
|---|---|---|---|---|
| CIPC Annual Returns | All legally registered entities | Submit declaration of turnover annually | Every year in the anniversary month of registration | Penalty fees and deregistration of the entity |
| Income Tax | Every entity that is trading, even those not trading must submit zero returns | Submit ITR14 annually & PROVSA Bi-Annually | ITR14 is due 12 months after year end & PROVSA is due 6 months from start of the year and at year end. | R250 for every year outstanding |
| VAT | All entities turning over more than R1 million per annum | Submitting your VAT returns on e-Filing | Every two months Monthly for entities turning over more R30 million | 10% penalty fees plus interest |
| PAYE | All entities with employees above the PAYE threshold | Submission of EMP201 monthly to SARS | Before the 7th of every month, for the preceding month | Penalty fees of 10% for each late return |
| UIF Contributions | All entities with at least one employee | Submit monthly returns to SARS or directly to UIF | Monthly before the 7th of every month, for the preceding month | Penalty fees of 10% for each late return |
| UIF Declarations | All entities with at least one employee. Registration with Labour for UIF is required in addition to UIF with SARS | Monthly declarations to the Department of Labour | Monthly before the 5th of every month, for the preceding month | Employees are unable to claim maternity and unemployment benefits if the entity is not registered with Labour |
| SDL Contributions | Employers with an annual payroll spend of R500 000 and above | Pay 1% of employees salary through the EMP201 | Monthly before the 7th of every month, for the preceding month | Penalty fees and inability to claim mandatory grant from SETA |
| COIDA Returns | All entities with at least one employee | Submit returns for assessment. Assessment rates differ based on the industry and size of payroll | Annually, between from the 01st to the 31st of March. Usually with a grace period to April or May | Penalties of 10% of the outstanding returns and employees cannot claim if they get injured on the job |
| Employment Equity Report | All employers with more than 50 employers, or over the sectoral turnover threshold | Submit Employment Equity Report and Plan | Annually between 01 October and 15 January | Penalty fees of the greater of R2 700 000.00 or 10% of turnover |
| Skills Development Report (WSP/ATR) | All employers who are required to be registered for SDL as above | Submit your Workplace Skills Plan and Annual Training Report (WSP/ATR) | Submit to the SETA the company is registered with by 30 April each year | Forfiet 20% of your SDL contributions & B-BBEE training spend cannot be recognized by Verification Analysts if the WSP/ATR was not submitted |