The 2019 Employer Annual Reconciliation filing season will soon be opening on 17 April 2019 (it is usually 1 April but has been delayed due to system upgrades at SARS). You have until 31 May 2019 to submit your Annual Reconciliation Declaration (EMP501) for the period 1 March 2018 – 28 February 2019 to SARS.
SimplePay automatically generates the IRP5s / IT3(a)s and EMP501 needed for year-end filing with SARS and these are available under the Filing section of the menu. Submissions of your EMP501 can be done via eFiling or the [email protected] application. You may need to update your [email protected] application to the latest version, 6.9.4. This can be done here. Please remember to back up your current information on your computer before installing a new version of [email protected]
For more information about the bi-annual filing process, refer to this help page. We also have a useful guide to take you through it step by step. The guide contains an important checklist which will help you eliminate unnecessary validation errors when trying to upload files to [email protected]
As always, please feel free to contact us at [email protected] if you have any questions.
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:
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.
ETI is aimed at reducing youth unemployment by providing a tax incentive to employers who hire young workers aged 18 to 29. It was meant to end on 28 February 2019, with no further tax credits being granted. However, towards the end of 2018 it was confirmed that, due to the success of ETI, it would be extended until 2029.
As of 1 March 2019, the ETI remuneration brackets have also been amended to account for inflation. Employers must still pay employees who work 160 hours per month a minimum of R2 000 in order to claim ETI. However, the maximum that employees can earn and still qualify for ETI has now increased to R6 500 (from R6 000). As a result of this increase, the R2 001 – R4 000 bracket has also been amended. Employers can claim a R1 000 tax credit per month for the first 12 months for employees earning R2 000 to R4 500.
The new remuneration brackets are as follows:
ETI monthly tax credit in first 12 months of employment
ETI monthly tax credit in second 12 months of employment
You were onto something! Thanks to your suggestions on ways of making SimplePay even greater, we are happy to announce our newest feature! While we have built our system on simplicity and compliance, we understand that sometimes you have unique needs. Our new feature therefore gives you the ability to add your own fields to an employee’s Basic Info screen.
Want to capture an employee’s nickname or cellphone number? Add a custom “Text” field.
Want to record the date that employees completed their orientation training? Add a custom “Date” field.
Want to record an employee’s marital status? Add a custom “Dropdown” field with options to select from.
You can now capture the information that you want, with added features coming soon!
To learn more about how this functionality works, head over to our help page here.
We’d love to hear from you if this feature enhances your payroll experience. In addition, if you have any trouble with this new feature or would like some further guidance, please reach out to our friendly support team who would be happy to help.
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)
The Minister of Labour announced in Government Gazette No. 42092 that there would be an increase in the OID earnings threshold under Section 83 (8) of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act no. 130 of 1993).
As from 1 March 2019, the maximum amount on which an assessment of an employer shall be calculated on will be R458 520.
This change has been made effective in your OID report on SimplePay. To access this report, go to Filing > OID (Workman’s Comp) Return.
When downloading the report for the tax year ending 28-02-2019, the threshold of R430 944 for 2018/2019 will be displayed as the 2019 tax year cap, while the new threshold of R458 520 will be displayed under the 2020 tax year cap.
When downloading the report for the tax year ending 28-02-2020, both caps will be displayed as R458 520, as the cap for 2020/2021 has not yet been announced.
In an effort to address wage inequality and stimulate economic growth, president Cyril Ramaphosa signed the national minimum wage bill into law last month.
The National Minimum Wage Act stipulates that the minimum wage is to be administered on an hourly basis and is set at R20 per hour. This minimum wage will be effective from 1 January 2019.
This means that the hourly rate will need to be changed for employees who are currently earning a wage lower than R20 per hour. To review or edit the hourly rate for employees, go to Employees > Bulk Actions > Regular Inputs and select “Basic Salary” and “Hourly Paid” under Filters.
Remember that a change in the ordinary hourly wage will also impact the rate for Sunday pay and public holiday pay. For more information on these, refer to our help page here.
Impact on ETI
The ETI Act states that when there is no “wage regulating measure”, the minimum wage to qualify for ETI is R2 000 per month. SARS has confirmed that the national minimum wage does not count as a wage regulating measure and the R2 000 minimum stands. However, the national minimum wage should ensure that employees will meet this minimum anyway.
Proposals have been made by professional bodies to amend the ETI Act to clarify this and to replace the R2 000 minimum on ETI with a use of the national minimum wage, but this potential change has not yet been approved.
If you have any further queries regarding the impact of this Act on your payroll and on the system, please do not hesitate to contact us.
Today we’d like to highlight a useful feature on the system that many users are not aware of. The Copy first value down feature makes capturing repetitive data for employees much faster. The following example explains how it works:
Bob has 7 employees who are hourly paid. All employees work the same number of hours each month, but the number of hours worked differ from month to month.
To capture these hours quickly for a particular month, Bob can:
Go to Employees > Bulk Actions > Payslip Inputs.
Use the filters to locate the fields that he wishes to capture information for.
Enter the hours for the first employee.
Click on the arrow next to the column name and select Copy First Value Down.
All hours have been copied down. If Bob is happy with this, he can click Save. If one employee did not work the same amount of hours as the rest, he can change it just for that employee.
It’s as simple as that!
Found this article useful? Let us know in the comments section below and we will be sure to highlight more features like this in the future.
We have officially launched our new user interface design!
We hope that you like our new look, which is designed to make it easier and quicker for you to find what you are looking for. The new user interface has a fresh and modern look and feel, with more user-friendly navigation. Of course, we haven’t lost sight of your needs and all the usual features and functions that you have come to expect with SimplePay are still there.
Take a moment to explore the new user interface design. You will discover:
The tabs that were previously at the top of the screen have been moved to a menu on the left-hand side.
No more overlooking the actions on the right of the screen, as these now appear on the top of the screen when clicking on a menu item.
Shortened and more relevant terminology:
Submissions is now called Filing, and Payment Runs has been changed to Pay Runs.
Payment Frequencies has also been shortened to Pay Frequencies.
The top-right hand corner of the screen has 2 new icons: the Help icon and the Profile icon.
The Help icon has the following options:
Help for this page: see help pages specifically for the screen you are on (if available),
General Help: navigate to our help site, where you can browse various topics.
Support: Contact the Support team or grant them view-only access from this screen.
The Profile icon has the following options:
Companies: This allows you to add, delete and switch between companies.
Billing: This shows you all your billing information.
User Profile: You can change your password here, or switch between roles if you have more than one role.
Manage Users: This allows you to add, deactivate and manage the users in SimplePay for your company, including changing their permission settings or role.
Logout: Keep your information secure by logging out of SimplePay when you’re done.
Improved payroll screen:
The payroll screen is divided into 3 columns, making it easier to do payroll.
Adding a regular item is now done by clicking on Add next to Regular Inputs.
Clicking on Add next toPayslip Inputs lets you add a once-off item to this payslip only.
To view a previous payslip, add a payslip or change payslip dates, click on the date dropdown field next toPayslipin the last column.
The new user interface also has improved mobile responsiveness. This will be developed further in the upcoming weeks.
Mobile responsiveness means that SimplePay is more compatible with mobile phones and tablets, allowing you to process payslips on the move.
Employees can more easily use their phones to access their payslips and make leave requests, without needing to download any apps.
We hope that you are excited about the new user interface. If you have any questions, please do not hesitate to contact us. Please also let us know what you think of our new look – all comments and feedback are welcome. We would also love to hear suggestions for new information or topics for our help site or blog.