It’s that time of the year again – when you have to complete your Return of Earnings (ROE) or W.As.8. It is basically a declaration to the Compensation Fund of your employees’ earnings for the past year – in this case from 1 March 2016 to 28 February 2017 (the same as the tax year). In addition, you also provide projected earnings for the next year.
Although the official deadline is 31 March, this has been extended to 31 May, and the filing season for this year is 1 April 2017 to 31 May 2017.
As always, we at SimplePay try to make your life easier, and you are able to download a report from our system that will help you to complete your W.As.8. Simply go to Submissions > OID (Workman’s Comp) Return.
Our system has already been updated with the new maximum amount of earnings on which your assessment will be calculated. The maximum will increase from R377 097 to R403 500, with effect from 1 April 2017.
More information about the Compensation for Occupational Injuries and Diseases (COID) Act can be found on our help site.
If you are doing a manual submission, please ensure that you are using the latest version of the W.As.8, which can be found here.
Remember: your bi-annual SARS filing / reconciliation is also coming up soon, so if you get your ROE submission out of the way, it’s one less thing to worry about.
Please feel free to contact [email protected] if you need any assistance.
The SimplePay Team
As we’ve entered a new tax year on 1 March, we’d like to remind you that there is no need to do a manual year end as in other payroll systems – simply continue processing payslips into the new tax year.
When you need to do your filing, the correct period will automatically be used and the relevant documents will be generated. For more information, please see our help site
In addition, our system has already been updated in order to ensure that you are always compliant. We are pleased to inform you that as from 1 March 2017, your payroll will automatically meet all the requirements for the 2017/2018 period, as announced in the 2017 Budget Speech on 22 February 2017. If you are still processing payroll for the 2016/2017 tax year, the old tax tables will still be used, as you’d expect.
Here are some of the most important changes that you will see in your payroll for the coming year:
As expected, the tax tables have changed with inflation. The major change is the introduction of an additional, 45% tax bracket, for taxpayers earning R1 500 001 and above.
|Taxable Income (R)
||Rate of Tax (R)
|0 – 189 880
||18% of taxable income
|189 881 – 296 540
||34 178 + 26% of taxable income above 189 880
|296 541 – 410 460
||61 910 + 31% of taxable income above 296 540
|410 461 – 555 600
||97 225 + 36% of taxable income above 410 460
|555 601 – 708 310
||149 475 + 39% of taxable income above 555 600
|708 311 – 1 500 000
||209 032 + 41% of taxable income above 708 310
|1 500 001 and above
||533 625 + 45% of taxable income above 1 500 000
The tax threshold has also increased from R75 000 to R75 750 because the primary rebate has increased from R13 500 to R13 635.
The medical aid tax credit has increased as follows:
- The tax credit for the main member and first dependant has increased from R286.00 to R303.00 per month.
- For every additional dependant, the tax credit has increased from R192.00 to R204.00 per month.
The ‘tax free’ portion for the subsistence allowance** has increased as follows:
- The allowance for incidental costs within South Africa has changed from R115.00 to R122.00.
- The allowance for meals and incidental costs within South Africa has changed from R372.00 to R397.00.
**It is important to note that the subsistence allowance is only a guideline provided by SARS and is not legislated.
If you have any questions relating to the above changes, you are welcome to email us at [email protected] to assist you with these queries.
The SimplePay Team