, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
Question 1
1.1. Statement A. Is it correct? If it is not, state the correct position and explain what Nomvula
must actually do. (80 to 120 words)
Statement A is incorrect. A sole proprietor is still required to register the business as an employer
with SARS once they employ staff. The business and the owner may be one legal entity, but the
PAYE obligation is based on employing staff, not the business structure. Nomvula must register as
an employer by completing and submitting an EMP101 form to SARS before paying her employees
(LSB2605, Study Guide, p. 13). She cannot simply declare wages on her own personal tax return;
she must deduct PAYE from employee salaries and submit monthly EMP201 returns (LSB2605,
Study Guide, p. 13).
1.2. Statement B. Is it correct? If it is not, state the correct position and its source. (80 to 120
words)
Statement B is incorrect. UIF contributions are required for employees working more than 24 hours
per month. Kagiso works approximately 6 hours per month, below the threshold, so he is exempt
from UIF (LSB2605, Study Guide, p. 18). The correct position is that for employees covered by UIF,
the employer deducts 1% from the employee's remuneration and contributes a matching 1%, totaling
2% of remuneration (LSB2605, Study Guide, p. 18). This requirement is sourced from the
Unemployment Insurance Act 63 of 2001 (LSB2605, Study Guide, p. 18).
1.3. Statement C. It contains two separate errors. Identify and correct both. (80 to 120 words)
Statement C contains two errors:
SDL Obligation: Nomvula is not required to register for the Skills Development Levy. The
SDL is payable only where the total annual remuneration paid to employees exceeds R500,000
(LSB2605, Study Guide, p. 21). Her payroll is approximately (R9,500 + R5,400 + R5,400 +
R1,800 (for Kagiso)) x 12 = R265,200, below the threshold.
OHSA Application: The Occupational Health and Safety Act applies to businesses with more
than 20 employees (LSB2605, Study Guide, p. 25). Nomvula has four employees, so she is not
required to appoint health and safety representatives. However, the Act's general duties of an
employer to provide a safe working environment still apply (LSB2605, Study Guide, p. 23).
1.4. Statement D. It contains two separate errors. Identify and correct both. (80 to 120 words)
Statement D contains two errors:
Registration Deadline: Registration with the Compensation Commissioner must be done within
7 days of first employing a worker (not 21 days) (LSB2605, Study Guide, p. 26).
Coverage: COIDA covers all employees—full-time, part-time, and casual—not just full-time
staff (LSB2605, Study Guide, p. 25). The Act defines "employee" broadly to include part-time
and casual workers, provided they work more than 24 hours per month (LSB2605, Study Guide,
p. 18). This position is sourced from the Compensation for Occupational Injuries and Diseases
Act 130 of 1993 (LSB2605, Study Guide, p. 25).
Question 1
1.1. Statement A. Is it correct? If it is not, state the correct position and explain what Nomvula
must actually do. (80 to 120 words)
Statement A is incorrect. A sole proprietor is still required to register the business as an employer
with SARS once they employ staff. The business and the owner may be one legal entity, but the
PAYE obligation is based on employing staff, not the business structure. Nomvula must register as
an employer by completing and submitting an EMP101 form to SARS before paying her employees
(LSB2605, Study Guide, p. 13). She cannot simply declare wages on her own personal tax return;
she must deduct PAYE from employee salaries and submit monthly EMP201 returns (LSB2605,
Study Guide, p. 13).
1.2. Statement B. Is it correct? If it is not, state the correct position and its source. (80 to 120
words)
Statement B is incorrect. UIF contributions are required for employees working more than 24 hours
per month. Kagiso works approximately 6 hours per month, below the threshold, so he is exempt
from UIF (LSB2605, Study Guide, p. 18). The correct position is that for employees covered by UIF,
the employer deducts 1% from the employee's remuneration and contributes a matching 1%, totaling
2% of remuneration (LSB2605, Study Guide, p. 18). This requirement is sourced from the
Unemployment Insurance Act 63 of 2001 (LSB2605, Study Guide, p. 18).
1.3. Statement C. It contains two separate errors. Identify and correct both. (80 to 120 words)
Statement C contains two errors:
SDL Obligation: Nomvula is not required to register for the Skills Development Levy. The
SDL is payable only where the total annual remuneration paid to employees exceeds R500,000
(LSB2605, Study Guide, p. 21). Her payroll is approximately (R9,500 + R5,400 + R5,400 +
R1,800 (for Kagiso)) x 12 = R265,200, below the threshold.
OHSA Application: The Occupational Health and Safety Act applies to businesses with more
than 20 employees (LSB2605, Study Guide, p. 25). Nomvula has four employees, so she is not
required to appoint health and safety representatives. However, the Act's general duties of an
employer to provide a safe working environment still apply (LSB2605, Study Guide, p. 23).
1.4. Statement D. It contains two separate errors. Identify and correct both. (80 to 120 words)
Statement D contains two errors:
Registration Deadline: Registration with the Compensation Commissioner must be done within
7 days of first employing a worker (not 21 days) (LSB2605, Study Guide, p. 26).
Coverage: COIDA covers all employees—full-time, part-time, and casual—not just full-time
staff (LSB2605, Study Guide, p. 25). The Act defines "employee" broadly to include part-time
and casual workers, provided they work more than 24 hours per month (LSB2605, Study Guide,
p. 18). This position is sourced from the Compensation for Occupational Injuries and Diseases
Act 130 of 1993 (LSB2605, Study Guide, p. 25).
