Employer filing season starts on 01 April 2014

Important date to remember!   The employer filing season for EMP501 submission starts on 01 April 2014 and will run until 30 May 2014.  SimplePay has done the updates to comply with the new [email protected] layout.  Changes you need to know:

– The new SIC (standard industrial classification) codes have been implemented.  You can now setup your company with your specific industry information.

How to do this setup:

In your payroll, go to settings and select the ‘Employer filing details’ option.  You will be required to fill in the company information required by SARS, as well as the new industry classification codes.  Important, your SIC code needs to be 5 digits!  But don’t worry, SimplePay has already done most of the work, you just need to select the correct options!

If you would like more assistance in setting up your SIC codes, and also a help guide to do your annual reconciliation and submission, follow the below link to visit the help section.

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

Employment Tax Incentive Functionality

We’re proud to announce we’ve now incorporated support for ETI (Employment Tax Incentive, a.k.a. Youth Wage Subsidy) in the system.  You can (and should) read more about it in the Employment Tax Incentive section of our online help.

If you’ve already submitted your EMP201 for January but have employees that qualify for ETI, we’d suggest submitting an amended EMP201.  If you’ve finalised the January EMP201, you should see a newer draft version on the Submissions tab, but only if the system calculated ETI for Jan.

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.

Interim PAYE Reconciliation Closes in One Week!

Just a reminder that the current bi-annual recon season closes in a week, on Monday 31 October. You should submit all your tax certificates to SARS by then. SimplePay has an [email protected] export function that makes this easy.

You also need to do an EMP501 recon. SimplePay also has a report to help you with this.

If you haven’t completed your recon yet, start now to avoid the deadline rush.

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.

SimplePay is ready for the 2010 / 2011 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 2010 / 2011 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:

  • New tax rates are implemented. All employees receive some tax relief in the coming tax year. Some examples:
    • Those earning R 80,000 a year will save R 504.
    • Those earning R 250,000 a year will save R 1614.
    • Those earning R 750,000 a year will save R 3534.
  • Travel allowances are taxed at 80% instead of 60%.
  • Medical aid tax deduction increased:
    • R 670 per person for the employee and the first dependant (was R 625).
    • R 410 per person for each additional dependant (was R 380).
  • Tax free portion of subsistence allowance was increased:
    • R 276 per day for meals and incidental costs (was R 260).
    • R85 per day for incidental costs only (was R 80).

We’ll keep you updated on other changes, such as the new EMP 201 format and process.