COVID 19 and our response to it has brought about massive changes in so many ways. The lockdown has directly affected the way we work, and the activities we are carrying out. Some organisations have had to close down part or all of their operations, while others have ramped up or redirected their efforts.
It is a good idea right now to re-look at the financial plans of your organisation.
The annual budget for an organisation and/or for a particular project may have been approved by the board and by funders before COVID 19. The following may be reasons for significant variances from the original approved budget, as a direct financial impact of COVID 19:
Some taxpayers who are now working from home may be able to claim for expenses they incur.
In the tiniest of nutshells (listen to the audio for more detail), here are some of the criteria to meet in order to claim for home office expenses:
You must spend 50% or more of you time in a tax year working from home.
Your home office must be exclusively used as an office.
Deductible expenses include rental or home loan interest apportioned and based on the office space in relation to the rest of the house.
Phone bills don’t qualify as a tax-deductible expense.
Every year around this time, CMDS is very busy assisting organisations to finalise their financial records and prepare their annual financial statements for audit as the financial year end for many organisations falls either on 31 December, 28/9 February or 31 March. The lockdown has made this process more difficult from a practical point of view this year, but many audits are approaching completion with the hard work of finance staff and the cooperation of the auditors and funders.
- How financially fit is your non-profit organisation?
- Are its financial resources well managed?
- How healthy are your financial control systems?
This checklist will diagnose the health of your organisation's systems of financial management.
NEW YORK — As he leads a visitor on a tour of the busy Harlem intersection where the organization he co-founded has made a home for the past 25 years, Khary Lazarre-White explains with pride how Brotherhood/Sister Sol transformed a cluster of mostly vacant and rundown bodegas into classrooms and a temporary headquarters.
A few steps later, he pauses at a community garden — an oasis of green amid rows of brownstones and gray tenements — run with help from the young people who participate in the group’s programs. Finally, he heads two lots over to an empty hole in the ground, which will soon be the site of the nonprofit’s new headquarters.
Minister of Employment and Labour, Thula Nxesi, has published a new directive which aims to make it easier for South African employees to receive financial support from the Temporary Employee/Employer Relief Scheme (TERS).
The TERS applies to employers who are ‘facing distress’ and are unable to pay salaries due to the lockdown. It is one of the key ways that the government is helping distressed workers during the coronavirus pandemic.
Trade federation Cosatu has submitted an urgent request to Finance minister Tito Mboweni, to allow workers to access part of their retirement fund savings for coronavirus financial relief.
Cosatu said that other than the ‘very meagre’ TERS benefit, many of its members are not receiving income as they are are not working during the lockdown period.
“We are of the firm view that access to sufficient income during the lockdown period, coupled with the threat of a rapidly spreading Covid-19 pandemic, is critical to the well-being of workers and their families,” Cosatu said.
The COVID-19 UIF Beneficiary Process – Temporary Employers Relief Scheme (TERS)
The benefit is only available where an Employer is registered with UIF
The benefit is available to Employees who are laid off as a result of COVID-19 and do not receive a salary or are receiving a reduced salary. In other words, an Employer could top-up an Employee’s salary
The benefit is available where an Employer has closed the whole or part of its business for a period of three months or less as a result of COVID-19
The Unemployment Insurance Fund (UIF) has always provided for a level of protection to employees and the unemployed. Aside from the new COVID TERS benefit through UIF covered in our previous newsletter, there are a number of existing UIF benefits that are relevant in this time of crisis, and these have been highlighted in various media statements.
This is a quick and basic summary of relevant existing UIF benefits:
On 5 May 2020, the commissioner for the South African Revenue Service (SARS) provided a detailed account of projected revenue collection in light of the Covid-19 crisis, along with insight of what we can expect from the tax collector in coming months.
Jean du Toit, head of tax technical at Tax Consulting SA, unpacked the most important aspects of Edward Kieswetter’s address below:
The South African Revenue Service (SARS) has outlined changes to the coming tax filing season due to the impact of the coronavirus.
In a presentation on Tuesday (5 May), SARS commissioner Edward Kieswetter said that the season will be comprised of three phases with a number of key changes being made.
The Covid-19 Money Hub will help answer your business and money questions and explore the financial help available to you during the coronavirus crisis.
The Unemployment Insurance Fund (UIF) gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption leave, or illness. It also provides relief to the dependants of a deceased contributor.
The unemployment insurance system in South Africa is governed by the following legislation:
Unemployment Insurance Act, 2001 (the UI Act)
Unemployment Insurance Contributions Act, 2002 (the UIC Act)
These Acts provide for the benefits, to which contributors are allowed, and the imposition and collection of the contributions to the UIF, respectively, and came into operation on 1 April 2002.