Registration

An employer is any person (sole trader, business, partnership, company or other legal entity that hires an individual person to perform duties for a salary, wage or fee, commission or any other income.

Once a person becomes an employer, registration as an Employer with the FRCA must be done within 30 days.

This applies even if the individual is to be employed on a casual or seasonal basis.

The responsibilities of an Employer are covered under Section 82, (82A) of the Income Tax Act, and the Income Tax (Withholding Tax) Regulations 2013.

The Employer Details section of the Taxpayer Registration form(s) either
(IRS001 or IRS003) must be completed.

Copies of the Regulations may be obtained from the FRCA upon request or can be accessed on FRCA website http://www.frca.org.fj/legislations-and-regulations/.

When should an Employer register?

For income tax purposes, employers must register within 30 days of the commencement of any trade, business, profession or vocation; if the person will be required to pay Provisional tax (Section 83) and/or will have employees (Paragraph 3 (1), Section 81 – Income Tax (Employment) Regulations).

What are the Employer Details in the Application Form?

This section must be completed only for applications by sole traders who employ at least one person.

You must complete all items. If an item is not applicable write “N/A” in the box.

Write your postal address in the box provided. FRCA will send you forms and correspondence in relation to your PAYE matters. If this address is the same as the mailing/tax agent’s address in the personal details section, write “As above”.

Write the number of employees who will have tax deducted from their wages, in the boxes provided.

If you wish to make separate PAYE payments for different branches of your business, complete the branch names and address in the boxes provided. If you have more than 2 branches attach a list to the application.

 

PAYE Process Procedures

PAYE tax is collected through source deductions from salaries, wages and other remuneration receivable from employment.

The tax is calculated on chargeable income.

Employers are responsible for the deduction and remittance of PAYE tax to the Fiji Revenue & Customs Authority.  They are also required to comply with other regulations and instructions that may be issued from time to time.

The features for these regulations are contained in Sections 79, 80, 81 and 82 of the Income Tax Act.

PAYE Employee Declaration (IRS458)

An employee must file Employee Tax Code Declaration Form stating the name, TIN and the Tax Code that is either primary or secondary employment.  This will enable the employer to determine/calculate the correct amount of tax to be deducted in each pay period.

 

Overtime Payments

Overtime payments are to be included as part of the regular employment income and PAYE tax is to be calculated on total employment income excluding any fringe benefits.

 

Tax deductions on extra ordinary payments (Legal Notice 69)

If an employer makes a payment in respect of bonus, gratuity or other additional earnings or retrospective increase in employment income the following basis for tax deduction should be made based on a reasonable estimate of what that employees total employment income will be from the present employer for that calendar year including the payments that is being made.

 

Year of Assessment 2013 and every subsequent year

 Residents

Chargeable Income ($)

Tax Payable ($)

Social Responsibility Tax

0-16000

Nil

16,001 – 22,000

7% of excess over $16,000

22,001 – 50,000

420 + 18% of excess over $22,000

50,001 – 270,000

5,460 + 20% of excess over $50,000

270,001 – 300,000

49,460 + 20% of excess over $270,000

23% of excess over $270,000

300,001 – 350,000

55,460 + 20% of excess over $300,000

6,900 + 24% of excess over $300,000

350,001 – 400,000

65,460 + 20% of excess over $350,000

18,900 + 25% of excess over $350,000

400,001 – 450,000

75,460 + 20% of excess over $400,000

31,400 + 26% of the excess over $400,000

450,001 – 500,000

85,460 + 20% of excess over $450,000

44,400 + 27% of the excess over $450,000

500,001 – 1,000,000

95,460 + 20% of excess over $500,000

57,900 + 28% of the excess over $500,000

1,000,001 +

195,460 + 20% of excess over $1,000,000

197,900 + 29% of the excess over $1,000,000

 

Non-Residents                          

Chargeable Income ($)

Tax Payable ($)

Social Responsibility Tax

0-16000

20% of excess of $0

16,001 – 22,000

3,200 + 20% of excess over $16,000

22,001 – 50,000

4,400 + 20% of excess over $22,000

50,001 – 270,000

10,000 + 20% of excess over $50,000

270,001 – 300,000

54,000 + 20% of excess over $270,000

23% of excess over $270,000

300,001 – 350,000

60,000 + 20% of excess over $300,000

6,900 + 24% of excess over $300,000

350,001 – 400,000

70,000 + 20% of excess over $350,000

18,900 + 25% of excess over $350,000

400,001 – 450,000

80,000 + 20% of excess over $400,000

31,400 + 26% of the excess over $400,000

450,001 – 500,000

90,000 + 20% of excess over $450,000

44,400 + 27% of the excess over $450,000

500,001 – 1,000,000

100,000 + 20% of excess over $500,000

57,900 + 28% of the excess over $500,000

1,000,001 +

200,000 + 20% of excess over $1,000,000

197,900 + 29% of the excess over $1,000,000

 

 

Exemptions from tax deductions

Tax shall not be deducted in the following cases:

  • employment income exempted from the payment of tax (e.g. pension).
  • where total income or chargeable income falls below the tax threshold.
  • payments in respect of domestic services.

Payment of PAYE deducted

The employer is to remit to FRCA on or before the end of the month following the month in which the tax was deducted on remittance advice IRS350.

Upon cessation of business, the PAYE payment is to be paid within 7 days of the day in which business ceased to operate.

PAYE Employee Certificate

The employer is required to furnish to the employee on or before the last day of February each year a Tax Withholding Certificate (IRS452A- Pay As You Earn Employee Certificate) in duplicate, showing the following details:

  • name and address.
  • tax identification number/employment number.
  • tax code (P or S)
  • gross employment income.
  • value of benefits.
  • total tax deducted.
  • period of employment.

Two (2) further copies:

  • triplicate to the Chief Executive Officer.
  • quadruplicate retained by employer for record purposes.

Other instances for certificate to be furnished to employees:

  • cessation of business – not later than 1 month after business ceases(Tax Withholding Certificate (IRS452)
  • cessation of employment – not later than 7 days (Employer’s Certificate of salary or wages paid (IRS460)
  • death of an employee – not later than 30th of the following month to the legal representative or next of kin.

Salary/Wages advice slip

An employer is to furnish an employee particulars of payment including the gross emoluments and amount of tax deducted in the appropriate form.

Records to be kept

 

Inspection  

All wages sheets and other records relating to the calculation or payment of employment income must be produced for inspection whenever required by the Commissioner.

Books of Account

Every employer is required to keep adequate books of accounts for tax purposes. Every book of account and documents which are essential to explain any entry is to be preserved for a period of not less seven (7) years.

Fringe Benefits Tax

All employers providing non-cash fringe benefits to employees are obliged to register for fringe benefits tax.

Where can I get the information on value of fringe benefits provided to employees by employers?

The fringe benefits tax brochure and Practise Statement will provide you with a more detailed information on the value of fringe benefits.

 

 

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HEAD OFFICE LOCATION

CONTACT DETAILS

Revenue & Customs Services Complex,
Lot 1 Corner of Queen Elizabeth Drive
& Ratu Sukuna Road,
Nasese,
Suva.
Phone: (+679) 3243000
Fax: (679) 3315537
Email: info@frca.org.fj