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.

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.