Deemed standard employment

Interpretation
On the employee page in TalyPayroll, the employee status gives you two options:
 * Full time
 * DEEMED NON STANDARD

This corresponds to the SARS concepts of STANDARD OR DEEMED STANDARD EMPLOYMENT and DEEMED NON STANDARD EMPLOYMENT respectively.

Full time employment
If any of these is true, then mark the person as a full time employee
 * This is an employee who works full time for you, OR
 * This is an employee who works less than 22 hours per week, and doesn't work for anyone else (which they have to declare in writing to you), OR
 * This is an employee who works for at least five hours a day and receives less than R261 per day, OR
 * The SARS Commissioner declares this employee of class to be DEEMED STANDARD EMPLOYMENT.

DEEMED NON STANDARD
If none of the above conditions apply, then mark the employee as DEEMED NON STANDARD

Employee tax
If DEEMED NON STANDARD as above, then tax is calculated at 25%.

SARS Says
According to the AS-PAYE-05 guide, the following applies (from section: DEEMED STANDARD AND NON-STANDARD EMPLOYMENT)

Reference to the Act
Standard employment definition in Paragraph 11B of the 4th Schedule

Meaning
Where an employee does not fall within the definition of standard employment, an employee will be deemed to be in standard employment if —
 * the employee (including scholars and students) is required to work for less than 22 hours a week and the employee furnishes a written declaration that he / she will not render services to any other employer, for the period that such employment is held; or
 * the employee works for at least five hours a day and receives less than R261 per day.

Where the employer conducts his / her business in such a manner that employees render services on a regular or frequent basis for such periods as may be required by the employer, the Commissioner may, after consultation with the employer or with any body or association on which the employer is represented, direct that the employment of such employees shall be standard employment. The Commissioner may further instruct the employer as to the manner in which Employees' Tax must be deducted. (Refer also to temporary employees who are frequently employed).

Examples of non-standard employment
Workers not in standard employment employed on a daily basis who are physically paid daily, for example:
 * Casual commissions paid, such as spotter’s fees.
 * Casual payments to casual workers for irregular services rendered or occasional services.
 * Fees paid to part-time lecturers.
 * Honoraria paid to office bearers of organisations, clubs, etc.

Employees' Tax
Standard employment income— The weekly, fortnightly and monthly tables are used and the annual table is used at the end of the tax period or tax year to determine SITE.

Non-standard employment income— Employees' Tax at the rate of 25% must be calculated on the balance of remuneration.

Tax directive— Where the employer is in possession of a tax directive in respect of a part-time employee, tax must be deducted according to the instructions on the directive.

Example
Determining the applicable method of deducting Employees’ Tax (unless a tax directive is applicable).