Updates in SimplePay for the 2017/2018 Tax Year

As we’ve entered a 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 2017, your payroll will automatically meet all the requirements for the 2017/2018 period, as announced in the 2017 Budget Speech on 22 February 2017. If you are still processing payroll for the 2016/2017 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:

As expected, the tax tables have changed with inflation. The major change is the introduction of an additional, 45% tax bracket, for taxpayers earning R1 500 001 and above.

  • 2017/2018 Tax Rates:
Taxable Income (R) Rate of Tax (R)
0 – 189 880 18% of taxable income
189 881 – 296 540 34 178 + 26% of taxable income above 189 880
296 541 – 410 460 61 910 + 31% of taxable income above 296 540
410 461 – 555 600 97 225 + 36% of taxable income above 410 460
555 601 – 708 310 149 475 + 39% of taxable income above 555 600
708 311 – 1 500 000 209 032 + 41% of taxable income above 708 310
1 500 001 and above 533 625 + 45% of taxable income above 1 500 000

The tax threshold has also increased from R75 000 to R75 750 because the primary rebate has increased from R13 500 to R13 635.

The medical aid tax credit has increased as follows:

  • The tax credit for the main member and first dependant has increased from R286.00 to R303.00 per month.
  • For every additional dependant, the tax credit has increased from R192.00 to R204.00 per month.

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

  • The allowance for incidental costs within South Africa has changed from R115.00 to R122.00.
  • The allowance for meals and incidental costs within South Africa has changed from R372.00 to R397.00.

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

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

Updates in SimplePay for the 2016/2017 Tax Year

We are pleased to announce that SimplePay clients are once again some of the first to be informed of the relevant changes for the new tax year.   As from 01 March 2016, your payroll will automatically meet all the requirements for the 2016/2017 period, as announced in the 2016 Budget Speech on 24 February 2016.

Here are some of the most important changes that you will see in your payroll for the coming year:

2016/2017 Tax Rates:

Taxable Income (R) Rate of Tax (R)
0 – 188 000 18% of taxable income
188 001 – 293 600 33 840 + 26% of taxable income above 188 000
293 601 – 406 400 61 296 + 31% of taxable income above 293 600
406 401 – 550 100 96 264 + 36% of taxable income above 406 400
550 101 – 701 300 147 996 + 39% of taxable income above 550 100
701 301 and above 206 964 + 41% of taxable income above 701 300

The primary rebate has increased from R13 257 to R13 500.

The tax threshold has also increased from R73 650 to R75 000

The medical aid tax credit has increased as follows:

  • The tax credit for the main member plus first dependent has increased from R270.00 to R286.00 per month.
  • For every additional dependent, the tax credit has increased from R181.00 to R192.00 per month.

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

  • The allowance for incidental costs within South Africa has changed from R109.00 to R115.00.
  • The allowance for meals and incidental costs within South Africa has changed from R353.00 to R372.00.

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

If you have any questions relating to the above changes, you are welcome to contact SimplePay support to assist you with these queries.

The SimplePay Team

Updates in SimplePay for the 2015/2016 Tax Year

We are pleased to announce that SimplePay clients are once again some of the first to be informed of the relevant changes for the new tax year.   As from 01 March 2015, your payroll will automatically meet all the requirements for the 2015/2016 period, as announced in the 2015 Budget Speech on 25 February 2015.

Here are some of the most important changes that you will see in your payroll for the coming year:

As expected, that tax tables have changed with inflation, with tax rates increasing by 1 percentage point for individuals earning R181 901 and above.

  • 2015/2016 Tax Rates:
Taxable Income (R) Rate of Tax (R)
0 – 181 900 18% of taxable income
181 901 – 284 100 32 742 + 26% of taxable income above 181 900
284 101 – 393 200 59 314 + 31% of taxable income above 284 100
393 201 – 550 100 93 135 + 36% of taxable income above 393 200
550 101 – 701 300 149 619 + 39% of taxable income above 550 100
701 301 and above 208 587 + 41% of taxable income above 701 300

The primary rebate has increased from R12 726 to R13 257.

The tax threshold has also increased from R70 700 to R73 650

The medical aid tax credit has increased as follows:

  • The tax credit for the main member plus first dependent has increased from R257.00 to R270.00 per month.
  • For every additional dependent, the tax credit has increased from R172.00 to R181.00 per month.

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

  • The allowance for incidental costs within South Africa has changed from R103.00 to R109.00.
  • The allowance for meals and incidental costs within South Africa has changed from R335.00 to R353.00.

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

If you have any questions relating to the above changes, you are welcome to contact SimplePay support to assist you with these queries.

The SimplePay Team

Changes in SimplePay for the 2014/2015 tax year

We are pleased to announce that all SimplePay clients can now see what the changes are that have been made to SimplePay for the 2014/2015 financial year.  As from 01 March 2014, your payroll will automatically meet all the legislative requirements, as announced by Pravin Gordhan, the Finance Minister in South Africa.

Here are some of the most important changes that you will see in your new payroll:

– As expected, that tax tables have changed with inflation, and below you will see the tax table for the year ending 28 February 2015:

Taxable Income (R) Rate of Tax (R)
0-174 550 18% of taxable income
174 551 – 272 700 31 419 + 25% of taxable income above 174 550
272 701 – 377 450 55 957 + 30% of taxable income above 272 700
377 451 – 528 000 87 382 + 35% of taxable income above 377 450
528 001 – 673 100 140 074 + 38% of taxable income above 528 000
673 101 and above 195 212 + 40% of taxable income above 673 100

 

– The tax threshold has changed from R67 111-00 to R70 700-00.

– The medical aid tax credit has increased as follows:
* The tax credit for the main member plus first dependent has increased from R242-00 to R257-00 per month.
* For every additional dependent, the tax credit has increased from R162-00 to R172-00 per month.
It is important to note that employees 65 years and older will now also receive a tax credit on their medical aid. The medical tax credits amounts for employees who are 65 or older will be exactly the same as the tax credits for employees who are younger than 65.

– The ‘tax free’ portion for subsistence allowance has increased as follows:
* The allowance for incidental costs within South Africa has changed from R98-00 to R103-00.
* The allowance for meals and incidental costs within South Africa has changed from R319-00 to R335-00.
It is important to note that the subsistence allowance is only a guideline as provided by SARS, and is not enforced as per legislation.

– The OID limit has increased to R312 480-00 for the 2013/2014 year, and the 2014/2015 OID limit has been increased to R332 479-00.

If you have any questions to the changes that were made in legislation, you are welcome to contact SimplePay support to assist you with these queries.

The SimplePay Team