COVID-19 TERS POST-VERIFICATION AUDITS –
What you need to know
You may have recently received an audit notification letter or email requesting the supply of information and supporting documents with regards to your TERS (Temporary Employee Relief Scheme) benefit payments claimed as an employer during lockdown. These audits are being conducted by the Unemployment Insurance Fund (UIF) to ensure that TERS funds were allocated to valid employees, the correct amounts were paid and to detect any fraud or misuse of funds.
The post-verification exercises are expected to run for an estimated period of 12 months commencing on 11 September 2024.
Important steps to follow:
- Verify the legitimacy of the audit firm as per the audit permit letter received by visiting the UIF’s website (www.labour.gov.za), or contacting the UIF directly via telephone or email (0800 030 007 / TERScompliance@labour.gov.za).
- Submit all the information requested by the auditor in a relevant and understandable format, including (but not limited to),
- SARS Statement of Accounts,
- EMP501returns,
- Letters of Authority if the directors applied for TERS,
- full payroll reports,
- proof of payment to employees and UIF payments to SARS
Remember to comply with all the requirements in the body of the relevant letter or email, as well as in an attachment that may be received with the email.
If you are feeling uncertain or have any further questions, your friendly BAN franchisee is only a phone call or email away!
Article by: Izelle Snyman (Franchisee owner, Durbanville)
ACCOUNTING 101: The Importance of Accounting in Your Small Business
Ever wondered whether your business can afford hiring an additional employee, or whether there will be sufficient cashflow to pay the tax liability at the end of the year? Without accurate and up-to-date accounting records, running a business becomes a guessing game.
Accounting is vital for the successful functioning of any small business, and especially important to capitalise on future growth prospects. It creates a financial history of the business to guide future planning.
Some advantages to accounting for your business include:
- Better quality decision-making
- Improving cash flow management
- Accurate record-keeping for regulatory compliance
- Monitoring of expenses
- Setting up budgets and forecasts
- Measuring business performance
- Attracting investors or raising funds
- Detecting and preventing fraud
One additional step to merely maintaining accounting records is having your accountant analyse, reconcile and interpret your accounts on a monthly basis. This helps you as a business owner understand your financial results and highlights strengths and weaknesses in the business, thus further increasing effectiveness.
By making the accounting of your business a key component of operations, you can turn your financial strategy into a focused plan for success.
Article by: Madeleine Pretorius (franchisee owner, Paarl)
IMPORTANCE OF SUBMITTING A BENEFICIAL OWNERSHIP DECLARATION
In December 2019, South Africa was grey listed by the FIC due to all the corruption and money laundering in our country. Many laws and regulations came into effect following the grey listing. One of these regulations requires the declaration of the beneficial ownership of each company, trust and closed corporation.
A beneficial owner as defined is an individual who ultimately owns or controls a company or legal entity, even if they are not listed as the legal owner. They are the natural person who benefits from the company’s activities or exercises effective control over it, either directly or indirectly. In other words, “the warm body behind the legal entity.”
A Beneficial Ownership Declaration is a formal document that discloses the individuals who ultimately own or control a company, trust, or other legal entity. This declaration should be submitted annually to CIPC (for companies and closed corporations) or to the Master of the High Court (for Trusts).
Key Elements of a Beneficial Ownership Declaration
- Entity Details
- Name of the company/trust
- Registration number
- Address
- Type of business
- Beneficial Owner(s) Information
- Full legal name
- Contact details
- Date of birth
- Nationality
- Residential address
- Percentage of ownership or control
- Nature of ownership (direct or indirect)
- Documents to submit with a Beneficial Ownership Declaration
- Beneficial ownership register
- Certified ID of all beneficial owners listed
- Organogram of the business
- Share register or share certificates
- Mandate for the beneficial owner to the filer to submit the declaration
Article by: Jolene de Villiers (managed practice owner and director Hennenman)