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Compensation of home based care worker - tax obligations?

Posted 30 April 2015 under Tax Questions


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DareD says:
16 April 2015 at 12:00

I would like to understand the tax obligations, if any, for the following scenario and hope you will be able to assist with such. I am disabled and had to employ the services of a home based care worker to assit in my daily living activities/requirements. (since Jan 2015) According to my understanding, such is not deemed to be a formal employment and thus would not be taxable (same as domestic workers), but I just want to make sure. Neither is UIF payable. Now for the tax question: The careworker is earning a income/ wage of R2000 for every calendar month of service provided. In addition, Meals (provided in my house) and acccomodation (unfurnished dwelling seperate from my house, but include access to water and electricity) is part of this arrangement. Is the meals and accomodation taxable as a fringe benefit? Even if it is, based on my calculations, no tax would need to be deducted as the tax rebate is more than the tax calculated. Would I need to register as an employer? I do not hope so as it is lots of admin effort for 0 value. Regards

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TaxTimTaxTim says:
21 April 2015 at 8:35

The care worker is working for you full time as an employee and her salary may not be taxable as it falls under the tax threshold for 2015/2016. However you will have to pay UIF for her and you need to register with the department of Labour and make payments each month.


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