Costly SARS-imposed penalties on PAYE defaults avoided with DynamiQue tax solution

Amid the revenue authorities` strict clampdown on non-payment of PAYE, Q Data DynamiQue has forged a link with Meridian to offer corporate employers the assurance that their employees` income tax is fully and correctly deducted, thereby avoiding costly SARS-imposed interest and penalties.

Q Data DynamiQue is South Africa`s leading payroll, tax and human resources (HR) specialist company and Meridian is a fast-growing tax consulting group Meridian. Their solution will assist employers avoid costly SARS-imposed interest and penalties.

Through the cost-effective DynamiQue Tax Solution, a joint venture between DynamiQue and Meridian, employers are also able to adopt the much in demand `cafeteria` approach to remuneration. This affords staff the flexibility to structure their salary packages in a tax-efficient manner. Traditionally employers have shied away from implementing this approach because of associated high administration costs and complexity.

"The DynamiQue Tax Solution is the one answer to the two-pronged challenge of attaining and maintaining strict SA Revenue Service-compliance as regards income tax, and attracting and retaining a superior workforce by letting employees optimise their take-home pay legally," says

Q Data DynamiQue product strategist Rob Bothma.

Integral to the DynamiQue Tax Solution is the Meridian Computer Aided Tax Structuring System (CATSS), which harnesses DynamiQue`s market-leading payroll packages and personal information provided by each employee to highlight areas of PAYE non-compliance as well as opportunities for more efficient tax structuring.

"CATSS acts as a `Revenue inspector on a computer`, undertaking complete, confidential and automatic PAYE audits of every person on the payroll," says Meridian director Brandon Lattimer. "The full range of Revenue audit parameters, as well as employers` obligations and policies are audited for all amounts of remuneration specified in the Income Tax Act, including allowances and benefits.

"The `electronic inspector` takes cognisance of all pertinent stipulations of the employee`s service contract and job description. These include the letter of appointment, employee payslip, salary and rules used in the calculation of provident fund, pension fund and medical aid contributions, and the salary used to determine UIF contributions, workmen`s compensation and union dues.

"The system even takes account of the particular requirements of the reigning tax office, whose approach might differ from the rest. Audits are performed monthly to ensure information within the system remains current and reflects changing personal circumstances such as new vehicles, asset depreciation etc."

DynamiQue`s Rob Bothma elaborates: "The DynamiQue Tax Solution gives companies complete peace of mind, as they are able to prove they are SARS-compliant and their employees` tax has been structured legitimately and transparently. In addition, changes to tax law and practice are immediately accommodated.

"Administration overheads are reduced and overall employment costs are lowered through maximising the `employment rand` in the hands of the employee.

"Furthermore, any situation in which the Receiver challenges and/or disallows the structure recommended by DynamiQue Tax Solution will be defended, assuming information provided by the employee is accurate and IRP5/IT12 income tax returns reflect the tax structure as recommended.

"Employees benefit from the DynamiQue Tax Solution because they are able, often for the first time, to structure their packages flexibly and tax-efficiently. This results in higher take-home pay for employees of all levels, and improved employee morale. An optional feature is to negotiate a structure whereby employees can have their IT12 returns completed and lodged on their behalf at an advantageous rate."