No matter how hard one wishes one could avoid them, taxes must be paid. It is also extremely important to ensure that one’s taxes are calculated correctly. That’s why people look for a SARS Tax Calculator. As a business owner, the pressure mounts as it comes to tax season and a mistake on the owner’s end could cause problems for their employees when they submit their tax return forms.
In this article, we will discuss whether or not you as a business owner should be using a SARS tax calculator in 2022.
Payroll Taxes VS Income Taxes
As a business owner, it is important to understand the difference between payroll taxes and income taxes. Income taxes are only payable by employees while payroll taxes are paid by both employees and employers. It should be noted that both income and payroll taxes are deducted by the employer before payroll takes place and an employee is paid their monthly salary.
SARS Tax Calculator VS Payroll Software
A SARS tax calculator, especially a free one found online, typically works by inserting one’s entire salary. The calculator then determines the amount of tax payable to SARS. This is a handy tool if you are being offered a new job and want to determine what your net salary would look like.
However, if you own a business, this is not the advised manner of working out the amount of tax that should be deducted off of a salary during a payroll cycle. Other than the increased possibility for mistakes to be made, it will also take longer to process payroll in this way. Most payroll software will automatically calculate and determine tax and tax applicability, ensuring that your calculations are accurate, efficient, and compliant.
Find a Tax Calculator in South Africa
There are a variety of free tax calculators available in South Africa. One of them can actually be found on the Old Mutual website. However, if you are running a startup or have a small business and are making use of a free tax calculator to determine what net salary you should pay your employee after-tax deductions, you should probably reconsider.
Why You Should Look Into Payroll Software
Payroll software has been specifically designed for businesses to ensure that their payroll cycles and tax calculations are always compliant with current legislation. There are so many small changes that take place every year that can have huge impact on one’s tax calculations. This is why payroll software such as PaySpace has included continuous legislative updates into their software. A system such as this also makes the entire process more efficient, freeing up extra time for payroll administrators to perform other tasks that might need their attention.
To find out more about how a payroll software system can ensure accurate and quick tax calculations, contact the team at PaySpace.