, LSB2605
ASSIGNMENT 2 SEMESTER 2
2026
DUE 8 SEPTEMBER 2026
QUESTION 1.1
Statement A is incorrect. While it is true that a sole proprietorship is not a separate legal entity,
Nomvula is still required to register her business as an employer with SARS for employees' tax
(PAYE) and UIF purposes because she has employees (LSB2605, 2014:15). A sole proprietor is also a
provisional taxpayer and must register for income tax (LSB2605, 2014:35). She must complete and
submit an EMP101 form to SARS to register as an employer (LSB2605, 2014:19).
QUESTION 1.2
Statement B is incorrect. UIF contributions are not deductible for employees who work less than 24
hours per month (LSB2605, 2014:20). Kagiso works approximately six hours per month, which falls
below this threshold. The correct position is that no UIF contributions are deductible for Kagiso
(LSB2605, 2014:20). The source for this is the Unemployment Insurance Act, as stated in the study
guide (LSB2605, 2014:20).
QUESTION 1.3
Error 1: Nomvula is not required to register for the Skills Development Levy (SDL) because her total
annual remuneration is below the R500,000 threshold. The combined monthly remuneration for
her full-time employees (Lerato and the two kitchen assistants) is R20,300 (R9,500 + R5,400 +
R5,400 = R20,300). Annually, this amounts to R243,600 (R20,300 x 12), which is well below the
R500,000 threshold (LSB2605, 2014:23).
Error 2: The Occupational Health and Safety Act applies to employers who have more than 20
employees (LSB2605, 2014:26). Nomvula has only three full-time employees (Lerato and the two
kitchen assistants), so the OHSA does not apply to her business, but the reason is the number of
employees (fewer than 20), not the fact that she has fewer than 20 as stated in the annexure
(LSB2605, 2014:26).
ASSIGNMENT 2 SEMESTER 2
2026
DUE 8 SEPTEMBER 2026
QUESTION 1.1
Statement A is incorrect. While it is true that a sole proprietorship is not a separate legal entity,
Nomvula is still required to register her business as an employer with SARS for employees' tax
(PAYE) and UIF purposes because she has employees (LSB2605, 2014:15). A sole proprietor is also a
provisional taxpayer and must register for income tax (LSB2605, 2014:35). She must complete and
submit an EMP101 form to SARS to register as an employer (LSB2605, 2014:19).
QUESTION 1.2
Statement B is incorrect. UIF contributions are not deductible for employees who work less than 24
hours per month (LSB2605, 2014:20). Kagiso works approximately six hours per month, which falls
below this threshold. The correct position is that no UIF contributions are deductible for Kagiso
(LSB2605, 2014:20). The source for this is the Unemployment Insurance Act, as stated in the study
guide (LSB2605, 2014:20).
QUESTION 1.3
Error 1: Nomvula is not required to register for the Skills Development Levy (SDL) because her total
annual remuneration is below the R500,000 threshold. The combined monthly remuneration for
her full-time employees (Lerato and the two kitchen assistants) is R20,300 (R9,500 + R5,400 +
R5,400 = R20,300). Annually, this amounts to R243,600 (R20,300 x 12), which is well below the
R500,000 threshold (LSB2605, 2014:23).
Error 2: The Occupational Health and Safety Act applies to employers who have more than 20
employees (LSB2605, 2014:26). Nomvula has only three full-time employees (Lerato and the two
kitchen assistants), so the OHSA does not apply to her business, but the reason is the number of
employees (fewer than 20), not the fact that she has fewer than 20 as stated in the annexure
(LSB2605, 2014:26).
