Module 5 • Staffing your business


To determine a remuneration level for your business, you will have to keep the following factors in mind: – how the remuneration in your business compares with that of similar businesses – you must compare a specific position in your business with a similar position in another business


– if your remuneration level does not compare favourably with the other business, you will find it difficult to attract people and to retain your current staff.


You will also have to determine a wage structure for the different positions in your business. This can be done by job evaluations of all the posts in the business to determine the internal relationships between posts. To determine the remuneration of two people with the same job, you must consider the following aspects: – seniority – number of years in the job – qualifications – formal training of employee – performance/achievements – determined through performance appraisal and job evaluation


• Methods of payment – Time or day rates – workers are paid per time unit worked (per hour, per day, per week, etc.) – Piece rates or incentive pay – workers are paid according to their productivity. A worker’s pay is therefore directly linked to his performance. Commission to a sales person is a good example.


• Legal aspects – The Basic Conditions of Employment Act (1997) The following aspects of the Act will have an influence on the salary or wage policy in your business:


• Income tax PAYE Employees who earn more than R63 556 per year pay PAYE (pay as you earn) on the amount above R63 556 and they must complete a tax return. People who are self-employed also pay PAYE and must pay provisional tax at the end of February and August on their income of the previous year.


Income Tax Table: The Income Tax Table for 2013 is provided below and can serve as a general guideline when determining how much tax an employee will pay per year. Government regularly adjusts the tax figures which makes it compulsory for anyone who is involved with employee salaries to visit the SARS website.


Tax Pocket Guide Compiled by the South African Revenue Service


This SARS pocket tax guide has been developed to provide a synopsis of the most important tax, duty and levy related information.


INCOME TAX: INDIVIDUALS AND TRUSTS Tax rates (year of assessment ending 28 February 2013) Individuals Taxable Income (R) Rate of Tax (R) 0 – 160 000 18% of taxable income


160 001 – 250 000 28 800 + 25% of taxable income above 160 000 250 001 – 346 000 51 300 + 30% of taxable income above 250 000 346 001 – 484 000 80 100 + 35% of taxable income above 346 000


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