A lot has changed in the weeks since President Cyril Ramaphosa announced a nationwide lockdown. The old way of doing things have in many cases been permanently disrupted, while new business cases and opportunities have appeared.
In a bid to help you make sense of this changing world, The Beancounter compiles this weekly update to keep you informed about the latest developments that might have an effect on your business.
We want to remind our clients that we will always be here to help you adjust, and thrive in a post-Covid-19 world. Never hesitate to contact us.
Here is what small businesses should take note of this week:
VAT Relief – The import of essential goods under Covid-19
At the end of March, SARS announced that imported goods that it defined as “Essential Goods” will be VAT-exempt. This exception is specific to the Covid-19 pandemic.
For a detailed list of the “Essential Goods”, as defined by SARS, click here.
SARS, however, noted that the VAT-exemption status will only apply on goods which are fetched or received by companies themselves at the country’s ports (direct imports), and not on imported goods that first go through warehouses or other third parties before it’s sent to companies (indirect imports).
The local supply of essential goods or critical supplies will also still have the typical VAT-rate of 15%.
UIF TERS Feedback
As mentioned in our previous update, May 2020 submissions for the Unemployment Insurance Fund (UIF) TERS benefit have not yet opened. The UIF has also not made any indication of when employers can expect the May submissions to be opened.
As soon as we’ve received any clarity around the process, we will include all the relevant information in our weekly updates.
The UIF last week also sent out letters to claimants around the payment of April 2020 TERS payments. These letters state and clarify the following:
a) UIF TERS benefit payments and what an employer has paid to an employee, may not exceed the basic salary that an employee would have earned in a typical month if they had worked normal hours.
b) The UIF is currently evaluating all the transactions that have been paid out as part of the April TERS benefits to ensure that these transactions were correct and accurate. In the letter, the UIF said employers should inform them of the accuracy of April TERS payments by clicking one of the three options provided in the letter, and sending the response to an email address provided.
The three options are:
1. The monies received from the TERS fund was correct, with no overpayments to employees.
2. The monies received from the TERS fund was in excess of what should have been received, however, the overpayment (or partial overpayment) has already been refunded or will be refunded.
3. The monies received from the TERS fund was in excess of what should have been received, and no refund has been paid to the UIF. The overpayment will be recalculated by the UIF and a debt raised against the employee that will reduce the May 2020 benefit payment.
The UIF warned that if employers do not submit a response to the letter within good timing, May 2020 claims may be affected.
Employers who indicated on their April 2020 submission that employees will not be paid during the lockdown period would not have received such a letter. This is because there cannot be any difference between what the UIF calculated and what was actually paid to employees.
Employers are reminded that the TERS benefit payments cannot be used as a cash flow injection for a business’ operational expenses as it is in direct contravention of the agreement between you, as the employer, and the UIF. The UIF has previously stated that they will take legal action against any employer who contravenes this agreement.
The Beancounter clients: Please contact your account manager if you have received such a letter, and we will assist in getting it completed and sent back to the UIF promptly.
Occupational Health and Safety (OHS) amidst the Covid-19 pandemic
Pure Safety is one of The Beancounter’s clients and they are professional health and safety, environmental and quality consultants.
They have compiled an Occupational Health and Safety (OHS) toolkit to help businesses comply with Covid-19 regulations, and to take the lessons from the epidemic to strengthen a business’ overall OHS Management going forward.
As many businesses return to work under Lockdown Level 4 regulations, and more reopening under Lockdown Level 3, it is important businesses ensure that they comply with the necessary OHS and legal requirements before returning to the workplace.
Pure Safety can help businesses become compliant with all the new OHS regulation. You can have a look at their website here and their informative Covid-19 preparation booklet here.
Until next week…
The national lockdown and the ongoing impact of the Covid-19 pandemic remains an uncertain time for everyone, and The Beancounter is hard at work to help you adapt and adjust during this unprecedented period.
We look forward to working with you the weeks and months ahead, to ensure you are fit for purpose and thrive post-Covid-19.