Updates in SimplePay for the 2019/2020 Tax Year

As we enter the 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 2019, your payroll will automatically meet all the requirements for the 2019/2020 period, as announced in the 2019 Budget Speech on 20 February 2019. If you are still processing payroll for the 2018/2019 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:

2019/2020 Tax Rates

The tax rates for individuals have remained the same as last year, with only the tax thresholds and rebates increasing.

Taxable Income (R)Rate of Tax (R)
0 – 195 85018% of taxable income
195 851 – 305 85035 253 + 26% of taxable income above 195 850
305 851 – 423 30063 853 + 31% of taxable income above 305 850
423 301 – 555 600100 263 + 36% of taxable income above 423 300
555 601 – 708 310147 891 + 39% of taxable income above 555 600
708 311 – 1 500 000207 448 + 41% of taxable income above 708 310
1 500 001 and above532 041 + 45% of taxable income above 1 500 000

The tax threshold has increased from R78 150 to R79 900 because the primary rebate has increased from R14 067 to R14 220.

Subsistence Allowance

The ‘tax free’ portion for the subsistence allowance** has increased as follows:

  • The allowance for incidental costs within South Africa has changed from R128.00 to R134.00.
  • The allowance for meals and incidental costs within South Africa has changed from R416.00 to R435.00.

**It is important to note that the subsistence allowance is only a guideline provided by SARS and is not legislated.

The Medical Aid Tax Credits have remained unchanged at R310 for the main member and first dependant and R209 for every additional dependant. Additionally no changes were announced for the common payroll components of Travel Allowance, UIF and SDL

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

8 Replies to “Updates in SimplePay for the 2019/2020 Tax Year”

    1. Hi Daphne, thanks for you comment and apologies for the delay. I will have one of our Support team reach out to you ASAP.

    2. It would be 18% of your salary, as per the tax table above, any salary between R 0.00 and R 195 80.00 would be 18%, see reference below

      Taxable Income (R) Rate of Tax (R)
      0 – 195 850 18% of taxable income

  1. Hi

    I would like to know the cost of your payroll software for small to medium sized companies

    Thanks
    Angie

    1. Hi Angelique, thank you for your comment. Pricing will depend on the number of active employees you have each month. One of our Support team will be in contact with you shortly to discuss in more detail.

  2. Hi,

    In regards to President Cyril Ramaphosa officially signed Labour Laws Amendment Bill into law late last year (2018), the following sections were inserted after section 25 of the Basic Conditions
    of Employment Act, 1997: ‘‘Parental leave 25A. (1) An employee, who is a parent of a child, is entitled to at least ten consecutive days of parental leave.

    Will “Paternity Leave” be available to select, as is the current case when applying for Study; Annual; Sick or Compassionate leave within SimplePay?

    Thank you

    1. Hi Ashley,
      I hope you are well. With regards to Paternity leave (Parental leave), there are still things that the Department of Labour (DoL) need to clarify. As this is unpaid leave, that employees can take and then claim a benefit from the DoL, they have not yet rolled out the necessary process for this. The Act you referenced also sites that, the payment of the benefit must still be determined by the Minister. As we are still waiting on clarity from the DoL, the best way to add Parental Leave to SimplePay would be through a custom leave type (like Study Leave has been added to your company), as an employer you would then need to decide if you would like to make this leave type paid or unpaid – if unpaid the employee would then be able to claim some unemployment benefit from the DoL. More information on how to make a custom leave type can be found here.

      Should you have any further questions please do not hesitate to contact our support team ([email protected])

      Regards,
      Desmore

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