Chapter 14
Related Sections
1
INTRODUCTION
2
Categories of SMMEs
3
TYPES OF BUSINESSES
4
Sole trader or sole proprietor (Owner)
5
Partnership
6
Close Corporation (CC)
7
Company
8
Co-operatives
9
REGISTRATIONS AS A NEW EMPLOYER
10
Summary of the statutory registrations required for employers
11
Employee’s tax – PAYE
12
Unemployment benefits (UIF)
13
Skills Development Fund and Levy
14
Compensation for Occupational Injuries and Diseases (COIDA)
15
Occupational Health and Safety
16
Formalising the employment relationship with employees
17
INCOME TAX
18
Provisional tax
19
How to register as a taxpayer
20
What happens if you do not pay tax or pay late?
21
SARS eFiling
22
VALUE-ADDED TAX (VAT)
23
VAT vendors
24
Who should register as a VAT vendor?
25
How do you register for VAT?
26
How does VAT work?
27
BUSINESS LICENCES
28
What types of business need a licence?
29
How to get a business licence
30
Does the business licence have to be renewed?
31
What happens if a person sells food and does not get a business licence?
32
Informal trading and hawking
33
EXPORTING AND IMPORTING
34
Permits for exporting and importing
35
Goods that are subject to export and import controls
36
Registering as an exporter and importer
37
ADMINISTRATION SKILLS FOR SMALL BUSINESSES
38
Bookkeeping
39
Payroll and personnel records
40
Other important records
41
Filing
42
Filling in forms
43
SUPPORT FOR SMMEs
44
The Small Enterprise Development Finance Agency (SEDFA)
45
Thusong Service Centres
46
National Small Business Advisory Body
47
PROBLEMS
48
Problem 1: What type of business to start
49
Problem 2: Starting a business which needs a business licence
50
Problem 3: Is being a VAT vendor worth it?
51
Problem 4: Drawing up a business plan
52
MODEL LETTER
53
Model letter of appointment
54
CHECKLISTS
55
Checklist: When starting a business
56
Checklist: Business Licence Types

Formalising the employment relationship with employees

When someone is newly employed, the employer must give the employee a letter of appointment and a contract of employment. This contract describes the terms and conditions of the employment relationship and should be agreed on by the employee before they sign it.

Conditions of employment are governed by either a sectoral or wage determination (including a Bargaining Council Agreement), the Basic Conditions of Employment Act and the Labour Relations Act. The conditions of employment should include the organisation’s grievance and disciplinary procedures. The employer should also give the new employee a job description. By giving the employee a job description, the employee knows what is expected of them and the employer cannot later hold the employee responsible where the employee acted in terms of their duties. (See Model contract of employment; See Guidelines to drawing up an employment contract; See Drawing up a job description; See Laws about terms and conditions of employment; See Solving disputes under the Labour Relations Act)