POPI – We’ve Got You Covered

With rumours circulating of an effective date towards the end of the year, there’s been a lot of fuss lately around the Protection of Personal Information Act, otherwise known as POPI.

The basic idea behind POPI is the regulation of the processing of personal information. Personal information, broadly speaking, refers to any information regarding an identifiable natural or legal person, for example contact details, demographic information and private correspondence. Processing simply means anything done with personal information, including, but not limited to collection, storage, dissemination or destruction.

So what does this mean for you in terms of your payroll data?

As an employer, you will need to ensure that your employees’ personal information is processed in a manner consistent with the spirit and purport of POPI, meaning that it must be

  • processed with the employee’s knowledge and permission;
  • linked to a reasonable purpose – such as complying with tax and labour laws; and
  • carefully managed

At SimplePay, this was the case long before POPI, as the security of your sensitive payroll data has always been one of our greatest priorities. That’s why we have taken all of the steps reasonably possible to ensure that your and your employee’s data is securely stored and only accessed when necessary by those with the required permission to do so. This is done by means of SSL encryption, regular backups to two separate off-site locations and off-site data storage in an access controlled data centre.

For more detail on how we keep your data safe and your business POPI compliant, check out our Privacy Policy and Security Statement.

UIF Limit Increased

From 1 Oct. 20012, the annual limit for income subject to UIF contributions has increased from R149,736 to R178,464. That results in a new monthly limit of R14,872 and a weekly limit of R3,432.

Employees who have always earned less than the old limit (monthly R12,478), will not see any difference, they will still have the 1% deduction + 1% company contribution. However, those earnings more than the limit will see theirs increase from R124.78 per month to as much as R148.72 per month.

Tax tables and other info loaded for the 2011/2012 tax year

We’re pleased to announce that our clients and their employees can now see how their payroll will change in the new tax year. Payslips that fall in the 2012 / 2013 tax year will automatically meet the new legal requirements, while your payslips for the current tax year will still be calculated according to the current tax year’s rules, as you’d expect.

Here are the changes:

  • The biggest change: Medical Aid Tax Credits implemented. This replaces the old medical aid taxable income deductions.
    • R 230 per person for the employee and the first dependent.
    • R 154 per person for each additional dependent.
  • Tax free portion of subsistence allowance was increased:
    • R 303 per day for meals and incidental costs (was R 286).
    • R 93 per day for incidental costs only (was R 88).
  • New tax tables, with the usual slight tax relief.