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How to calculate deductions for a director who does not draw a salary every month

Posted 12 November 2015 under Tax Questions


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Shane says:
12 November 2015 at 11:57

I am doing basic bookkeeping functions for a company. The director has never drawn a salary but intends to do so for the next 2 months at R50000 per month. How do I calculate the deductions and pay UIF etc. over to SARS?

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TaxTimTaxTim says:
12 November 2015 at 15:31

Is the Company registered as an employer with SARS? i.e do you deduct PAYE and UIF for other employees?


Shane says:
12 November 2015 at 15:36

The company is a few months old. It is registered for PAYE & UIF with SARS. There are no other employees just the two directors who own the company. Neither have drawn a salary before and this will be the first time.


TaxTimTaxTim says:
12 November 2015 at 16:31

You could refer to the monthly SARS PAYE tables to see the PAYE that should be withheld on a salary of R50,000.

UIF should be deducted at 2% in total (1% from employee and 1% by the company).

You need to complete an EMP201 and submit to SARS by the 7th of the month (following the salary payment) in order to avoid penalties. You will need to also make a payment to SARS by this same date.


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