Opaido · Wiki · Topic
Employment
Contract types, nature of person classifications and employment lifecycle terms.
Asylum seeker (employment) An asylum seeker is a person who has applied for refugee status and works on an asylum permit, with a distinct tax and ETI treatment from a refugee or citizen.Director of a company A director of a company is an officer who manages the company, with PAYE often set by directive because their remuneration can be irregular.Employment contract An employment contract is the agreement setting out an employee's pay, hours and terms of work, the source document payroll relies on for basic salary, allowances and leave entitlements.Fixed-term contract A fixed-term contract is an employment agreement that ends on a specified date or event, subject to rules that limit its repeated renewal and protect against disguised permanent employment.Independent contractor An independent contractor provides services under a contract for work rather than a contract of employment, falling outside PAYE withholding and most labour law protections unless deemed an employee.Labour broker A labour broker supplies workers to clients for a fee; payments to it are subject to PAYE withholding unless it holds a valid IRP30 exemption certificate.Legally retired employee A legally retired employee is one who has retired from the retirement fund, so the employer's contributions on their behalf raise no taxable fringe benefit.Nature of person Nature of person is the SARS classification of an employee's tax status, such as natural person, asylum seeker or personal service provider, that determines how PAYE and the IRP5 are processed.Nature of person codes Nature of person codes are the SARS letter codes (A, C, D, E, F, G, H, M, N, R) that classify who an income recipient is, setting the applicable tax treatment.Non-executive director A non-executive director (NED) sits on a board without being employed in management, so their fees are taxed differently from an executive director's pay.Personal service provider A personal service provider (PSP) is a company or trust used to provide one person's services, taxed at high fixed PAYE rates to prevent disguised employment.Refugee (employment) A refugee is a person granted refugee status in South Africa, entitled to work and taxed broadly as a natural person, distinct from an asylum seeker.Take-on values Take-on values are the year-to-date figures captured when an employee is onboarded mid tax-year, so their totals and tax stay correct for the full year.Temporary / part-time employee A temporary or part-time employee works for a limited term or reduced hours, often paid by the hour or for a fixed period, but still an employee for PAYE.Termination of employment Termination of employment is the end of the employment relationship, which determines final pay, leave payout, and whether a severance payment or tax directive applies.
