As of the 2018/2019 tax year, the treatment of travel allowances where employees are reimbursed per kilometre travelled for business has changed.
Previously, the travel allowance was not taxable on the payslip, irrespective of the amount per kilometre reimbursed. However, the travel allowance may have been taxed on assessment.
From 1 March 2018, if an employee is reimbursed at a rate above the prescribed rate, the portion above the prescribed rate is taxable on the payslip. The prescribed rate for the 2019 tax year is R3.61 per kilometre.
There are no changes to the way that you capture the reimbursement on a payslip on SimplePay. We aim to keep you compliant with SARS and therefore SimplePay has been updated to take these rules into account. The system will automatically split the travel allowance into the taxable and non-taxable portion, based on your inputs.
Please note that due to this change, the reporting codes for reimbursive travel allowances used on the IRP5 have also been updated by SARS.
For more information on this, refer to the following help page.
At SimplePay we strive to create value for you by meeting your payroll needs in a simple and easy manner. With that in mind, we are thrilled to announce the launch of a new feature to make the tax year-end even easier for you – employees can now view their tax certificates via the self-service function.
This means that you can release IRP5s/IT3(a)s to your employees at the end of the tax year at the click of a button. Employees will be informed via email that their tax certificates are available on their employee self-service. You can also attach a PDF of their tax certificate in this email. Please note: you can only release final year-end IRP5s/IT3(a)s to employees i.e. interim IRP5s/IT3(a)s for the first 6 months of the tax year cannot be released to employees.
Please see the following help page for more information on the steps to enable and use this function.
With effect from 1 March 2018 and in accordance with the Taxation Laws Amendment Act of 2017, the following employee categories must no longer be excluded from contributing to UIF:
- Learners employed in terms of section 18(2) of the Skills Development Act
- Employees who intend to repatriate (return to their country of origin) at the end of their working period in South Africa.
This means that both (1) Learners and (2) Employees who intend to repatriate, must contribute to the Fund from 1 March 2018.
NB: The aforementioned categories of employees must contribute to the Fund, but will not be entitled to claim a benefit until the Unemployment Insurance Amendment Act changes become effective.