July Recap Blog

With yet another month in 2020 having come to an end, it is time to recap on the month of July and look ahead to what August has to offer!

COVID-19 TERS Extension

Update 4 August: The cut-off point for April and May TERS applications has been extended and closure will be subject to 14 day’s notice – Read more here.

As was covered in our blog on 21 July 2020, deputy Minister Moloi announced the extension of COVID-19 TERS to 15 August, aligning this with the extension to the Disaster Management Act. 

Applications for April and May close today, 31 July 2020, but we are still waiting for an announcement on the opening of applications for July.

Please also note that as previously mentioned the home page of the TERS application portal has been altered. A new message outlining urgent steps for the employer to take, in order for the UIF to be able to authorise payment of an application. Please take a look in case any action on your part is required for claims already submitted.

Use of the Reduced Working Time Category to Claim Benefits

The UIF has stated that there has been a dramatic increase in the number of applications for UIF under the reduced working time benefits code. This shows that a significant number of employees are likely receiving financial support through their accrued UIF benefits of receiving these through TERS. The UIF and Department of Labour have reiterated that TERS is the better option for employees as long as it remains in force.

In our blog about the time spans of the different COVID-19 support measures, we detailed the need to move employees across to UIF benefits upon the conclusion of the TERS scheme. With the abovementioned extension to TERS, switching employees should be delayed until at least 15 August 2020.

SARS Auto-Assessment Process

As mentioned in our previous blog from 7 July, SARS is rolling out a new, streamlined individual tax return service in August. Rather than having to manually complete your individual tax return, it may be automatically assessed if you meet SARS’ conditions. The new service will be run throughout the month of August and provided SARS has all the necessary tax information they need (IRP5 etc.) you and your employees will receive an SMS inviting you to review your statement and accept it if you are in agreement with it.

For more information on the scheme and an FAQ you can visit the SARS Auto-Assessment page.

Steps to Follow

  1. Log into eFiling or the SARS MobiApp.
  2. Click on “Tax Returns” 
  3. A pop up will appear stating “SARS has simulated a tax return for you. Click “Continue”.
  4. Once the ITR12 has loaded you can either select “Accept” or “Edit Return”.

If you have selected accept, you will be redirected to a list of your submitted ITR12s, or alternatively if you wish to edit your ITR12 you can do so.

If you have accepted the tax return SARS should issue you with an ITA34 Notice of Assessment. After you have received this that’s it, you’re done!

SARS has also provided video guides which you can find here.

Bi-Annual Tax Period

The end of August marks the halfway point through the tax year, meaning that soon after it will be time to start preparing for interim filing. Due to SimplePay’s continuing commitment to make your payroll life straightforward, we will endeavour to make sure that we have completed all necessary preparations and testing for when the interim biannual filing opens.

We hope that you have found the above information useful. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected] 

Equally, if you are not yet a client of SimplePay but would like to be, or if you’d like to know how we can take the effort out of filing and calculating payroll, get in contact with us or visit our website: www.simplepay.co.za.

Keep well and stay safe.

Team SimplePay

Repo Rate and Employer Loans Interest Rate Cut

Update 29 July 2020: We have updated the system to reflect the changes to employer loans benefit calculations. All employer loans on payslips dated from 1 August 2020 will make use of the new interest rate. As our system is built to be intuitive, any payslips dated before 1 August 2020 will make use of the previous interest rate.

In a historic, yet somewhat expected announcement, the Monetary Policy Committee has cut the repurchase rate (repo rate) by 25 basis points. This brings the repo rate to an all-time low of 3.50% per annum, effective as from tomorrow (24 July 2020).

The official interest rate, which is used to calculate employer loan benefits, is set at 1% above the repo rate. The new official interest rate will therefore be 4.5% per annum, effective 1 August 2020. Although the change in the repo rate is effective tomorrow, income tax legislation prescribes that changes in the official interest rate only occur at the start of a new month.

Being a SimplePay client means that you’ll benefit from updates to the system without having to install these updates or make any manual changes to your settings. You simply process payroll as normal and our system will use the correct official interest rate for the period of the payslip. Our development team are busy making the necessary system updates for the latest interest rate change and we’ll let you know as soon as they’re ready. This means that you should not yet finalise payslips for August for those employees with outstanding employer loans.

For more information on employer loans, head to our help page.

Not yet a SimplePay client but want to experience seamless payroll no matter what changes in legislation or policy occur? The good news is that we offer a 30 day free trial and sign up is a breeze! You can find out more and sign up for a trial here. Come and experience the joy of stress-free payroll.

Team SimplePay

Extension of COVID-19 TERS Scheme and Other Employment Related Matters

Yesterday (21 July 2020), the Department of Employment and Labour announced a very welcome extension of the COVID-19 TERS scheme until 15 August 2020.  The Deputy Minister announced this, along with some other noteworthy points at the Budget 31 conference. Therefore, in the blog today we will be looking at these latest proposals to counteract COVID-19 and stimulate the economy.

COVID-19 TERS

Update 4 August: The cut-off point for April and May TERS applications has been extended and closure will be subject to 14 day’s notice – Read more here.

As stated above, the TERS scheme  has been extended from 31 June to 15 August, providing an extra one and a half months of crucial support to help retain employees.

In her speech, the Deputy Minister also stated that the UIF is considering closing applications for April and May at the end of July, so we would strongly encourage you to apply if you haven’t already . It should be emphasised that all valid applications made before 1 August will still be processed and evaluated; 31 July is just a cut-off point for new applications.

COIDA

The Compensation Fund has stated its commitment to consider any claim from workers who contract the virus while at work. Successful applications could receive:

  • a pay-out for temporary disablement while the worker is in quarantine, self-isolation or hospitalized;
  • a payment of medical expenses; and
  • where the illness tragically results in fatality, the Fund will pay out survivor benefits to dependents in the form of a monthly pension and funeral benefit.

We covered such applications to the Compensation Fund in our very first COVID-19 Blog and more information on how to make submissions can be found in this Government Notice.

Additionally, proposed amendments to COIDA were outlined, showing the Compensation Fund’s new direction towards a “Rehabilitation and Return to Work Programme”. We shall keep our eyes open for updates on this in the near future.

Contacting the UIF

The UIF is revamping its call centre to better meet your needs. Changes include the introduction of an App and USSD services, which are due to go live in August. These changes are based on the feedback and issues encountered during the running of the TERS scheme; hopefully this will mean that we will benefit from a sleeker and more efficient system in the future. 

Additionally, the UIF has indicated that 10% of its assets will be set aside for use in Labour Activation Programmes. These programmes will support jobs and training as dictated by the needs of the labour market.

Other Announcements

The following additional points are important to note based on the topics discussed:

  • If your business relies upon non-resident workforces, you should keep abreast of policy changes in this area. A National Employment Policy is being developed, starting with the fast-tracked creation of a Labour Migration Policy to address immediate challenges.
  • If operating back at the workplace, you must ensure your workplace has a workplace plan and is compliant (see this blog). The recruitment of an additional 500 Occupational Health and Safety Officers by the Government’s Inspection and Enforcement Services branch is likely to be completed this month. This will help ensure compliance with the Health and Safety Regulations for returning to the work-place.
  • You should check your current health and safety protocols in preparation for updates to the legislation. The Occupational Health and Safety Amendment Bill is to be tabled for the current session of Parliament.
  • It is imperative that you are complying with the National Minimum Wage Act. The CCMA (Council for Conciliation, Mediation and Arbitration) has been working closely with Government branches to help enforce compliance with the National Minimum Wage, resulting in the recovery of short pay to workers.
  • Public employment services are to start operating mobile services across all provinces to bring the services to work-seekers. Additionally, an online registration process will be put in place to help accommodate social distancing.

Although this was just a speech, the proposals outlined are encouraging as they indicate an intention to continue supporting South African Businesses and people. Hopefully they will come into force smoothly.

If you would like to read the full speech by Deputy Minister Moloi, you can find it here

We hope that you have found the above information useful. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]  

Equally, if you are not yet a client of SimplePay but would like to be, or if you’d like to know how we can take the effort out of filing and calculating payroll, get in contact with us or visit our website: www.simplepay.co.za.

Keep well and stay safe.

Team SimplePay

New Feature: EMP201 Breakdowns and Variances

If you’re managing a business or department, you know the importance of tracking variances and maintaining an audit trail. Similarly, if you manage the submissions to SARS, it is important to be able to track any changes to your payroll which impact your submission and resubmit if necessary. What if there was a way to make these easier? Well now there is! Introducing the expanded EMP201 web view.

In a previous blog post, we introduced the ETI breakdown, accessible from the EMP201 web view. We have now applied the same concept to other areas of the EMP201, with breakdowns available for PAYE, SDL and UIF. 

Each breakdown shows a list of your employees and the total PAYE, SDL or UIF calculated for each employee. 

Remember, you can view the PAYE, SDL and UIF trace for each employee by going to their profile (announced in this blog post).

We have also created a variance feature for months where more than one EMP201 has been generated. Remember, if you make changes to your payslips after your EMP201 is finalised, a new EMP201 is generated so that you have a clear audit trail for resubmitting to SARS if needed. The breakdowns for any updated EMP201s now also show the differences between the PAYE, SDL, UIF and SDL in the updated EMP201 compared to the previous EMP201. The differences are shown per employee and the total difference is shown at the bottom of the breakdown.

We hope you love this new functionality and the benefits that it provides.

Need more information? The following help articles may be useful:

Not a SimplePay client? The EMP201 form and all functionality covered in this blog post and on our help site are only available to SimplePay clients. The good news is that we offer a 30 day free trial and sign up is a breeze! You can find out more and sign up for a trial here. Come and experience the joy of stress-free payroll.

Team SimplePay

Gross Remuneration Override for UI-19

At the onset of the COVID-19 pandemic, we worked swiftly to bring you solutions to new payroll challenges that arose. One of these was the introduction of the pre-populated individual UI-19 form (announced here), saving you the inconvenience of having to fill out these forms manually. We’ve now introduced an override option for the Total (Gross) Per Month field, so you can further tailor the form to your employees’ circumstances, if necessary.

The Total (Gross) Per Month should contain the value of the employee’s regular remuneration subject to UIF, and as such, the field is pre-populated with the gross remuneration earned by the employee in the month prior to the month of termination. This is because remuneration from the month of termination is often distorted, due to pro-rata earnings, leave paid out, severance pay and other transactions that arise as a result of termination. The prior month’s earnings therefore have a higher probability of accurately reflecting the employee’s regular earnings. 

To cater for employees whose earnings fluctuate frequently or whose month prior to termination was abnormal, the new override option gives you the flexibility to enter the gross remuneration that best reflects the average earnings of the employee. You can make use of the payslip items on the Transaction History Report generated by SimplePay or the Income Subject to UIF in the UIF Trace (outlined under the UIF Contributions heading here) when determining this figure. Alternatively, you can contact the UIF if you are uncertain.

To make use of the override option, follow these steps:

  • Click on Manage End of Service for an employee whose service has already been terminated on the system
  • Under Service Period History, click on Termination Certificate Inputs
  • Enter the monthly remuneration amount into the Override Gross Remuneration (UI-19) field
  • Click Save

It’s that simple! The individual UI-19 form will now reflect the gross remuneration that you entered.

For more information on terminations, the following help articles are available:

If these help articles do not solve your query and you need further assistance, please reach out to our support team.

Not a SimplePay client? All of the forms and functionality covered in this blog post and on our help site are only available to SimplePay clients. The good news is that we offer a 30 day free trial and sign up is a breeze! You can find out more and sign up for a trial here. Come and experience the joy of stress-free payroll.

Team SimplePay

COVID-19 Support Measure Timeline and Switching Support Options

Update 15 July: The UIF has released a statement that in order for them to authorise the disbursement of TERS benefits, you must enter your Enterprise number or ID number of the bank account holder. Failure to do so will result in delays.

Following on from the President’s speech last Sunday, 12 July, concerns over a spike in coronavirus cases has led to an extension to level 3 of lockdown. The effect of this is that many businesses and their employees will likely have to continue relying upon support to remain operational. In the blog today we want to outline the timelines for the existing COVID-19 support measures, thus helping you in making an informed decision for the coming phase of transition.

Timeline of Support Measures

Dependent on any announcements from the Government, as of 15 July 2020, this is the current timeline for the rolling up of support measures.

1 July 2020

Update 22 July: The UIF has announced an extension of the COVID-19 TERS scheme to 15 August 2020.

COVID-19 TERS scheme ceases to operate, meaning that TERS benefits cannot be claimed for July. Despite this, the Minister announced that there has been no cut off date put forward for claims to be made for the months of April, May or June. Therefore, if you are yet to apply for these months, you should do so as soon as possible.

NB: As per the above update, the home page of the TERS application portal has been altered, with a new message outlining urgent steps for the employer to take, in order for the UIF to be able to authorise payment of applications. Please take a look in case any action on your part is required for claims already submitted.

1 August 2020

35% PAYE deferral reaches completion, meaning that repayments start to become due for the amounts  deferred over the last 4 months, These repayments will be spread equally across the 6 months after the scheme finishes. It appears SARS will calculate these repayments and add them to your Statement of Account – please see question 10 SARS’s FAQ for more detail.

Additional and Extended ETI period closes, meaning that the original ETI sums and eligibility requirements will be back in force.

1 September 2020

SDL Payment Holiday comes to a close, meaning that employers and their employees will have to resume making contributions. SimplePay will automatically start to calculate SDL contributions again come 1 September. We also anticipate SARS to update their channels to allow for these inputs again. No repayments for the months that the holiday was in force will be necessary.

Alternate Support Systems Remaining in Place

We appreciate that the above list of timelines is quite a change in the tides, but we should reiterate that some of these deadlines could be subject to change. Additionally there are still other support measures available to help you with reducing cash outgoings, whilst your business returns to normality. Below is a non-exhaustive list of examples which you may wish to look into: 

Now is a good time to start planning ahead for how to handle this next transition phase and if necessary look into additional support measures.

Moving From TERS to UIF Benefits

If your business remains closed or affected by the pandemic and you have been reliant upon TERS benefits to help support your employees, now is the time to look into switching your employees onto claiming UIF Benefits.

The Department of Employment and Labour and UIF have released the “UIF Benefits – Easy Guide for Electronic Claims” which provides guidance on how your employees can apply for UIF benefits through uFiling, as well as a list of useful contacts. 

To help make this process as hassle free as possible for you, SimplePay generates both the individual UI 19 and UI 2.7 forms, which are necessary for your employees to be able to apply for benefits in relation to reduced working hours, maternity leave or parental leave. Note that the documents required are different for employees applying for illness benefits.

Further guidance on the correct procedure for you to follow for ending employee service is given in our blog from 6 July. Doing this process correctly will help improve your chances of a smooth transition onto UIF benefits.

We hope that the information we have provided proves useful to you. Should you have any questions on how the above relates to SimplePay or where to find further information on the functionality provided please refer to our Help Site, or get in touch with us at [email protected].

Update: New Individual Tax Returns Process

Individual Tax Returns

Back in May we sent out a blog reminding you of the annual employer reconciliation deadline, but also informing you of a delay to the deadline for your employees’ individual tax returns (ITR12s) from their expected opening date in July. This year, the window for manually entered individual tax returns opens on 1 September 2020. SARS has, however, also subsequently unveiled a new additional returns process which will be put into action over the month of August.

Under the “auto-assessment process” employees can have their returns filed and assessed without needing to complete the usual manual process through one of SARS’s channels. On 1 August, provided that individuals have had all their necessary information declared to SARS, they should receive an SMS. This will communicate an invitation to review a draft assessment on eFiling or the SARS MobiApp. If the draft assessment is correct, they can accept it, meaning that they don’t need to manually complete and file a tax return through one of SARS’s regular channels in September. Should a refund be due, it should follow within a week. The process that would need to be followed if the individual owed SARS was not mentioned. We will remain vigilant for any elaboration on this.

A further point to note is that if at the start of August, SARS have not yet received all the necessary information for an employee, but subsequently receive it during August, SARS will invite the employee to file early under the same system.

Come 1 September, if employees have not been auto-assessed, or chose to decline the draft assessment, they will be able to start the filing process via eFiling or the MobiApp. Additionally, there will be some availability for filing in branches, by prior appointment only. 

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]

Equally, if you are not yet a client of SimplePay but would like to be, or if you’d like to know how we can take the effort out of filing and calculating payroll, get in contact with us or visit our website: www.simplepay.co.za.

Keep well and stay safe.

Team SimplePay

Ending Service on SimplePay

One of the demands that COVID-19 has placed on businesses is the need to be flexible in the number of staff under their employ at a certain period in time. We at SimplePay appreciate this and so the blog today is aimed at informing you on what you need to do to accommodate your situation through the system to ensure accurate submissions, enable employees to claim benefits and prevent unnecessary billing.

Employees Leaving your Company

Ending Employees Service

If for any reason, one or more of your employees are no longer able to work for your business, whether only for a period of time or indefinitely, it is important to end their service on SimplePay for the following reasons:

  1. Ending employees’ service correctly provides them access to accrued unemployment insurance (UIF) benefits or TERS benefits.
  2. SimplePay’s pricing model is based on the number of active employees on the system at the start of your monthly billing cycle. Therefore, if the employee is still active on the system when your invoice is generated, you will be charged for the employee even if no payslips have been processed for that employee. 

Information on ending an employee’s service is detailed in this help article, including steps to follow, the end service checklist and which UIF status code to use.

If you have several employees whom you have to end service for, you can do this in bulk, as detailed in this blog.

If you are ending employees’ service in order to apply for TERS benefits for them, the correct UIF status code to use is given in the COVID-19 UIF Quick Reference Guide.

What Must be Provided to Employees Upon Ending Their Service

Having ended an employee’s service, there are a number of forms which you must provide them with. SimplePay generates the following forms on your behalf, saving you the added paperwork (click on the link for each for further information): 

More information on these forms can also be found in the COVID-19 UIF Quick Reference Guide. By furnishing employees with the above forms, this means that if you are not participating in the TERS scheme, employees can claim UIF benefits. For information on how to assist employees in this process, refer to this help page.

If whilst still under your employ, an ex-employee was sent invoice emails from SimplePay, the billing email list needs to be amended. To do this, click on the Profile Icon > Billing > Update Billing preferences and remove the relevant billing email(s). 

The final thing which you must check before your employees can claim UIF is that you are up to date with UIF declarations and payments. SimplePay has recently released several new features to ensure that you have all the information you could possibly need. As detailed in our blogs you can now download submissions, responses and view reasons for any error responses, allowing you to correct any issues that may have arisen. 

If you pay your and your employees’ UIF contributions directly across to SARS, SimplePay automatically details the UIF amounts owed in the generated monthly EMP201s. If adhered to, this should mean that you are not in any arrears. 

By following the above, this should result in a smooth transition and lessen the stress for all parties involved.

Shutdown of Business

Lockdown or other reasons might mean you sadly need to close your business on a temporary or permanent basis. Your intention on whether to reopen your business or not determines the appropriate actions to take.

Closing For A Period of Time

If it becomes necessary to close your business, but you intend to reopen, you should end the service for all employees and provide them with the necessary forms (as detailed above). 

As you are charged per active employee, ending the service for your workforce means that you will not be billed until they become active again.

Permanent Business Closure

In the unfortunate event that you need to close your business permanently, the following steps  need to be followed:

  1. End Service for Employees and Furnish Them with Forms – as described under “Employees Leaving Your Company” (above), the employees’ service should be ended and they should be provided with the forms to facilitate claims for UIF benefits.
  2. Deactivate Admin Users on your Account – if you have provided administrative privileges of your company to any ex-employees, we would recommend that these are deactivated upon ending their service. To do this, click on the profile in the top right corner > Manage Users >Delete. Should you wish for an ex-employee to retain access, you can leave their access rights unamended.
  3. (Optional) Remove the Company From SimplePay – If you wish you can delete your company from SimplePay. We strongly recommend against this as it will mean you no longer have access to information assimilated on SimplePay, which might come in useful e.g. should you have any documents requested from SARS. If you wish to delete the company details of how to can be found here

Closing User Account on SimplePay

It may be the case that you have come to the decision to close your account on SimplePay. If you are sure that this is the right decision for you and there is nothing we can do to change your mind, you will need to do the following:

  1. Get in touch with SimplePay at [email protected] and request they close your account. It would be greatly appreciated if in this email you include:
    1. The reason(s) for ending your SimplePay membership
    2. Method of payment used (direct debit / EFT etc.)

N.B.  SimplePay provides you with the option of freezing your account, meaning you can still access SimplePay for three months. This provides you with ample opportunity to ensure that there is not any information that you need which is still on SimplePay.  If though, you are certain that you have all the information you need, you can also opt to close your account with immediate effect.

  1. If there are any outstanding sums, these must be paid. If you are not in a position to do so, please advise us of this so that our billing team can engage with you on the best course of action.

We appreciate that this must be an extremely stressful and turbulent situation for you, with many hard decisions to make. If this is the end of your use of SimplePay, thank you for the support. We wish you well and hope that we will get the opportunity to work symbiotically with you again in the not-so-distant future. Should you have any questions on the above, please do not hesitate to contact us at [email protected].

Keep well and stay safe.

Team SimplePay

Recap for June

Welcome to the second half of 2020! The year so far has been a bumpy ride and while we realise that the journey is not yet over, we’d like to take a moment to acknowledge and thank you for your support during these first six months. Over this period we have strived for continued excellence in meeting your payroll needs despite the challenge of ever-changing regulations and processes, and thank you for your patience and understanding during periods of high support queries.

As we move forward into the latter half of 2020, here’s a quick recap of the new features and pertinent information from the last month:

NEW FEATURES

Amongst other smaller or less visible improvements and updates, our fantastic development team managed to introduce the following new features in June:

Web View for Payslips

The web view for payslips allows you to see the payslip items that do not impact nett pay directly without having to open the PDF version of the payslip. This view also gives you access to additional traces, such as UIF. Read more.

UIF, SDL, and Retirement Deduction Traces

The web view for a payslip now allows you to see traces for how UIF, SDL and retirement deductions are calculated. Read more.

ETI Breakdown and ETI Trace

A new web view for EMP201s was introduced, with an ETI breakdown and ETI trace, allowing you to see exactly how the ETI on an EMP201 is calculated. Read more.

Download UIF Files and Responses

The introduction of TERS lead to an increased importance being placed on the UIF DecIaration and its timely, monthly submission. In response, we expanded our functionality to include downloads of the actual file submitted to the UIF, as the responses for the UIF submission. Read more.

Deleting Leave Requests

We expanded our functionality for deleting leave to provide a breakdown of leave that cannot be deleted as they are part of a finalised payslip. We also allow the option of deleting leave requests superficially or its entirety. Read more.

End Service Checklist

The End Service Checklist reminds you about positive leave balances, savings and employer loans when ending an employee’s service from their profile. Read more.

Wow! All of that in one month! Pretty cool, right? 

Besides cool features, we also brought you important information updates. This is covered in the next section. 

IMPORTANT INFORMATION

Additional COVID-19 ETI

The rules for the additional ETI as a relief measure were amended by the government. Our system has been updated to factor these new rules in, so that it’s one less thing for you to worry about. Read more

Advance TERS Payments

We clarified how to deal with situations where you wish to provide advances to employees for TERS payments that are delayed or still being processed by the UIF. Read more.

TERS May and June Applications

The June applications for TERS opened and then subsequently were halted due to technical issues. They are likely to reopen over the weekend or early next week. The May application remains open. Read more..

POPI

The Protection of Personal Information Act came into force and became law on 1 July. Due to our stringent security measures, SimplePay has been compliant with these regulations long before they even came into effect. Read more.

We hope that the second half of the year marks a turning point and sees things improving and normalising. Whatever the coming months hold, we’ll continue to be here to support you and remain committed to providing you with high quality support, informational updates and maybe even a few more features.

If you require assistance, please head over to our extensive help site, which we are regularly updating. If your query cannot be answered using the help site, please reach out to our support team.

Not a SimplePay client but interested in the functionality mentioned in this blog post? 

The good news is that we offer a 30 day free trial and sign up is a breeze! You can find out more and sign up for a trial here. Join now and experience the joy of stress free payroll and SARS filing for years to come 🙂

Team SimplePay

Commencement of the Protection of Personal Information Act

The Protection of Personal Information Act (POPI) is South Africa’s legislation for the protection of individuals’ personal information against unethical use.

Despite being passed into law back in 2013, most of POPI has been waiting in the wings to be commenced. At the end of June 2020, the President announced that  1 July 2020 is the commencement date for the majority of the remaining POPI sections, with the exception of sections 110 and 114(4), which are to commence on 30 June 2021. 

This starts a one year grace period for businesses to ensure they are fully compliant. In this blog we will outline how SimplePay fits into the equation of POPI and our compliance with its requirements.

Overview of Organisations’ Responsibilities under POPI

POPI lists eight key principles with respect to the lawful processing of personal information, most of which can be grouped  into three broader categories. The first category relates to the collection of information, where the purpose for the collection should be clear and the accuracy of information ensured. The second category relates to the processing of information, where it can only be processed for the purpose it was collected, not for an expanded or additional purpose. The third category relates to security, where the information needs to have sufficient security measures to reduce the risk of data breaches.

The final principle that does not fit into the three above categories is accountability. POPI states that the responsible party needs to ensure that the conditions for lawful processing are met. 

Responsible Parties and Operators

The responsible party with respect to POPI is the public or private body or any other person which determines the purpose of and means for the processing of information.

An operator is a person or entity who processes information for a responsible party in terms of a contract or mandate, without coming under the direct authority of that party.

Putting this into context, you, the client are the responsible party for your employees’ (data subjects) personal information. SimplePay is acting as an operator for your benefit, processing your employees’ personal information in order to assist you in your payroll obligations. The relevance of this is that a party’s role determines their rights, obligations and liabilities.

An example of this is shown above, where the responsible party is obliged to ensure the conditions for lawful processing are met when determining the purpose of the processing.

SimplePay’s POPI Compliance

Even before it was required by law, SImplePay was already largely compliant with all our operational regions’ data protection laws, due to our underlying commitment to strict privacy and data handling practices. Since 2018, SimplePay has been fully compliant with GDPR, the EU’s equivalent data protection legislation, with which POPI shares many principles. This has resulted in SimplePay being compliant with POPI even before the official commencement of the Act.  

This means you can have peace of mind that the rights of you and your employees have always been, and will continue to be safeguarded by us. 

For greater detail on SimplePay’s compliance with POPI, you can visit the dedicated page on our website: www.simplepay.co.za/popi.

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]. Equally, if you are not yet a client of SimplePay but would like to be, or if you’d like to know how we can take the effort out of filing and calculating payroll, get in contact with us or visit our website at simplepay.co.za.

Keep well and stay safe.

Team SimplePay