SimplePay is all about you, our users. So when you asked for more power to customise the system to suit your payroll needs, we listened. We’re delighted to announce our latest feature – the ability to create custom items that follow the same tax and payroll rules as system items.
This new feature allows you to:
- Create multiple items of a certain type:
- Once-off Commission
- Employer Loans
- Maintenance Orders
- Customise the names of these items. For example, you may want to differentiate between different types of commissions.
- Map different versions of a specific type of item to different Xero accounts. For example, you may want to give an annual bonus to two different employees but you want one of them to be mapped to an account in Xero called “Director’s Costs” and the other to an account in Xero called “Employee Costs”. You can add the bonus to the payslips as two different items.
How does it work?
When creating a custom item (Settings > Custom Items > Add), there is now an option to select create a copy of an existing system item. Select the system item that you wish to use and give it a custom name. You can then add it to your payslips in the same way you would the system item of that type (Regular Inputs or Payslip Inputs).
Read our help page here for more information on creating custom items.
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 – 195 850||18% of taxable income|
|195 851 – 305 850||35 253 + 26% of taxable income above 195 850|
|305 851 – 423 300||63 853 + 31% of taxable income above 305 850|
|423 301 – 555 600||100 263 + 36% of taxable income above 423 300|
|555 601 – 708 310||147 891 + 39% of taxable income above 555 600|
|708 311 – 1 500 000||207 448 + 41% of taxable income above 708 310|
|1 500 001 and above||532 041 + 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.
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
From 13th to 15th February, the Directorate Employer Services of the Compensation Fund will be assisting payroll suppliers, employers and tax practitioners in Cape Town and its surrounding areas with the following matters:
1. Application for Change to the Nature of Business (sub-class change)
2. Online Registration for Employers
3. Information Required if selected for Audit
4. Return of Earnings Form (current and prior years).
Venue: Cape Town Labour Centre, Cnr Parade and Barack Street (22 Parade Street)
Date: 13 to 15 February 2019
Time: 08h00 to 15h00
Anyone who would like to, is welcome to attend.