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Can I deduct salaries paid to my helpers from my sole proprietor income?



Jade says:
6 August 2016 at 10:41

I am "unemployed" but make money with blogging. I have 5 bloggers/writers who help me but are not formally employed by me. I pay them every month. If I earned R150,000 and paid them all 40% of my earnings, would I then only be taxed on the remaining 60% I keep? Am I considered a sole proprietor and am I responsible for formally hiring them? The money I make is earned via an overseas source, not South African.

TaxTim TaxTim says:
8 August 2016 at 9:43

You are regarded as a sole proprietor, if you require your helpers to come into the office to work a 40 hour week then you are expected to take them on as employees on your books and register them for UIF and PAYE (employees tax).
If you only contact them when you need a blog written, they are regarded as freelancers and are responsible to deduct their own tax and pay it over to SARS.

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