It’s always exciting starting a new job. But you have so much to get done before you leave your old job and so much to plan for in your new role.
So here are a few tips to consider, this time from a tax perspective.
If you're changing jobs
You simply give your tax number to your new employer so that they can continue to pay PAYE to SARS on your behalf.
If you are working for more than one employer you need to tell them as they may not deduct the right tax even if your overall payments exceed R60 000 for the year.
Non Standard employment
If your employment is non-standard the employer will still have to register you for tax with us here at SARS. We consider your employment non-standard if you are employed irregularly and for example are paid daily or are paid casual commission. If you are in non-standard employment you’ll only pay tax at a rate of 25 percent of your income. Your tax may be refunded when you are assessed at the end of the tax year if your taxable earnings for the tax year don’t warrant the tax.
What will my new employer provide to SARS?
Well, if you are already registered as a tax payer then they will provide:
- Your bank details. If you are paid in cash or paid through a third party, such as a casting agency, your employer won’t have to provide SARS with your banking details.
- Your residential address
If you are not registered as a taxpayer then the employer will register you.
What else do I need to consider?
Remember changing jobs may also affect your pension planning. At the moment in law you are allowed to deduct the money you pay into your retirement annuity by up to 15% of your non- pensionable income against your tax. You need to investigate what pension provision is being offered by your new employer.