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.

Loads of New Features!

As usual, we’ve been hard at work adding new features to the system over the past few months, but haven’t gotten around to telling you about all of them yet. So, without further ado:

  • Improved Maternity Leave Function: A subtle improvement. Now, the employee can be re-instated without losing the historic status indicators on the UIF declarations. And the payslip date will automatically be moved forward to the first available date after returning to work.
  • Payroll admins can now approve leave requests: Previously, only another employee could approve leave. However, since in many companies the employee responsible for approving leave is also a payroll admin, this makes sense.
  • Better handling of paying out leave for weekly workers: After paying out multiple weeks of leave for a weekly worker (which is accomplished by overriding the end date of the payslip), the system will now default to the correct next payslip period corresponding to when the employee returns from leave.
  • Added Nedbank CSV EFT Format: Depending on how your internet banking is set up, this may be the preferred format for you to use.
  • Option to print residential address on payslips: Some clients asked for this so that employees can use payslips for proof of residence. This may or may not be acceptable depending on the institution requiring the proof.
  • Option to print pay point on payslip
  • Xero: Assigning pay points to Xero tracking categories
  • Custom deductions / contributions can now be calculated as a % of income

Please keep the suggestions coming. And as always, please contact us if you have any questions.

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.

Interest Rate Change and New Features

Due to the recent drop in interest rates by the reserve bank, the fringe benefit interest rate on low or interest free loans will now be 6% instead of 6.5%.

Once again there are some features that have been released but not announced yet:

  • Vastly improved reinstatement: If an employee has left your company, possibly works for someone else, but later returns, you longer have to capture them as a new employee as with most payroll systems. Just re-instate them and the system will start a new service period for them.
  • Skills & Equity: You can now enter demographic info used for EE and Skills reporting. The reports are coming soon, but at least you can get started on getting the data ready.

New Features: Bulk input for recurring items and pay-point permissions

We’ve added 2 new features that you may find useful. The first is bulk input of recurring items, such as basic salary / hourly rates, which was previously only available for periodic items such as hours worked.

The second is the ability to grant other users access to administrate only certain pay-points within a company – previously you could only grant another user access at the global or company level.

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.

Self-Service and Full Take-On Released

We’ve recently released two frequently requested features. The first being employee self-service, which allows your employees to log in and access their current and historic payslips online. You can also have the system e-mail them when their latest payslips are ready. This is version 1.0 of self-service and future versions will include more advanced features such as leave requests and updating of the employee’s particulars.

The second is the full take-on of IRP5 balances for existing employees. This is particularly important as we prepare for the new bi-annual reconciliation which starts with the period ending August 2010. It also allows for automatically adjusting the tax calculation to take into account the period before using SimplePay.

Thanks to everyone who’s taken the time to let us know which features they would most like to see in SimplePay. More will be coming soon.