Frequently Asked Questions
Why Should I Choose TFS Holdings?
What do I need to supply for the Year End EMP501 Reconciliation?
There’s a few things that you would need, namely the following:
1. Employee Information sheets.
2. A salary & deductions schedule for all employees.
3. A test file as well as a live file should you have a payroll system e.g. Pastel or VIP Payroll
Need some help getting this done, click here to get in contact with us and we’ll let you know what we need to get started.
What are all the annual returns I must submit as a business owner?
1. EMP501 return
2. CIPC Annual return
3. Tax Returns
4. Workmans compensation return of earnings submission
How long does a Compensation Fund Letter of Good Standing take to generate?
Once Final Payment has been made, it takes up to 5 working days to generate.
What is the difference between a TCC and a letter of good standing?
A TCC (Tax Clearance Certificate) is generated by SARS for Tax Type Compliance.
A Letter of Good Standing is generated by the Compensation Fund for compliance with the Compensation for Occupation Injuries and Diseases Act.
What is COIDA?
COIDA (Compensation for Occupational Injuries and Diseases Act) provides for compensation for disablement caused by occupational injuries, death or diseases sustained or contracted by employees in the course of their employment.
Is another company able to assist me with Workmen’s compensation claims?
No, it is imperative that the company who registers for Workmen’s Compensation, appoints an officer (usually the HR department or Health and Safety officer) to oversee all processes involved with the claim.
Another entity can only assist with annual return of earnings to maintain registration and assist with payment plans from an administrative perspective.
What is a tender?
A tender in South Africa is a bidding system in place to get the best deals with suppliers, Potential suppliers will apply for the opportunity to offer their services to the company or government entity that has issued the tender, the suppliers then offer their services in a tender application according to the specifications set out by the company issuing the tender.
Once all tenders are in and the deadline has been reached, the company will then award the tender to the best candidate that is compliant to all their needs as well as the tenders needs issued.
Why do I need to register my Company with CIPC?
Simply put, you need to register a company because it becomes a registered entity, like when you are born, you are issued an Identity number, and with that Identity number you can purchase licences, properties, open bank accounts etc. like an individual, a company will have essentially the same rights as a person, but because it is not a human being that is self-sustaining, its owners, directors need to keep on updating CIPC (relate this to home affairs) regularly, pay annual fees, and abide by regulations set out in the Companies ACT.
Why do I need to pay to keep my company registered every year?
What is the difference between a PTY LTD and a CC?
A Pty stands for Proprietary Limited which means it is a privately held company, and a CC which is a closed corporation are is usually chosen by smaller business owners.
How many directors can be on a company (Pty) (Ltd)?
A minimum of one natural person upon registration, and an unlimited maximum number of directors.
What is a sole trader?
A sole trader / sole proprietor is a person trading in their own name with no legal protection under the Companies Act, the person trades with the risk all in their name, all assets and liability falls on the sole proprietor.
A sole proprietor has full control over decision making within their business, with minimal requirements to register and get trading. However the risks far outweigh the advantages of registering as a company.
How many directors can be on a Public Company / Non-profit Company?
Upon registration, three directors need to be appointed, and an unlimited maximum number of directors.
What types of directors are there in a company?
Normal Director, Non-Executive Director, Alternate Director.
What is a share certificate?
A share certificate is a certificate issued by a company certifying that on the date the certificate is issued a certain person is the registered owner of shares in the company. The key information contained in the share certificate is: the name and address of the shareholder. The number of shares held.
How do shares in South Africa work?
In order for you to buy shares, the currentowners of the company would agree to break the company into an example of 10 000 shares, each worth a certain amount. The value of the company remains at R500 000.00 (R50 share price x R10 000 shares), but you can now buy one share in the company at R50.00, or five shares at R500.
What is a company secretary?
Not to be confused with a receptionist or admin clerk, a company secretary just like a secretary of state, is responsible for compliance or legislative adherence, a person who sits in meetings of all kinds, advises on the legality of decision making, a company secretary does all the companies secretarial work, administering the Share’s, MOI’s, registrations and any other secretarial duties.
Do I need a company Secretary in my business?
Depending on the size of your business, you can outsource secretarial administrative work to be done, or you can employ an in-house secretary to maintain all legislative compliance.
How does an employment contract work?
This is a document that sets the terms of agreement for employment, these terms are binding, and can be bypassed if either of the parties do not adhere to the contract set out, the employment contract can protect both the employee or employer, but is mostly designed to protect the employer from insubordinate or unlawful employees who seek to tarnish the agreement of employment.
To purchase an employment contract, contact us.
Do I need HR services?
Most definitely, employees are protected by regulations set by the CCMA and can take on any company for reasons that do not adhere the fair treatment of employees.
Employers can be ahead of this by implementing good practices to ensure that they are getting the best out of their employees, if they are not getting the best, they are keeping good record of all attempts to better the employee, if employee persists and resists, then the employer has fair ground to dismiss.
What are the disciplinary actions required for fraudulent activity in the workplace?
Follow your disciplinary procedure and dismiss your employee;
1. Employers discretion
2. Call the police and have your employee arrested, as it’s a criminal offence to steal or commit fraud.
What do I need to supply to my accountant monthly?
Bank statements, creditor & debtor invoices and ledgers. (All financial records) the more supporting documentation, the better it is for accurate accounting. It has become good practice and legal standard to request all supporting documents within a business of any nature.
What are annual financial statements?
Annual Financial Statements are prepared annually to present the financial results of your business for the previous year ended, according to you yearend listed at CIPC.
Why do I need annual financial statements?
Each registered entity must prepare annual financial statements as per the Companies Act of 2008.This can either be reviewed or audited depending on the PIC score.
What is UIF?
UIF (Unemployment Insurance Fund) gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption leave or illness.
When do I need to register my company with CIPC?
if you are planning to be your own boss (entrepreneur), register immediately, never register as a sole trader, it is not worth it because you are very limited to expenses, and the tax is a marginal tax bracket (the higher you earn the more tax you pay) if you register as a company, the highest tax you will pay is currently 28% tax.
If you plan on starting a company and employing immediately, you need to register as soon as possible.