Customise System Items

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:
    • Commission
    • Once-off Commission
    • Employer Loans
    • Garnishees
    • Maintenance Orders
    • Savings
  • 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.

2017 UIF Increase: The Facts

Updated on 7 July 2017 with information about uFiling issues

You might have heard about an increase regarding the Unemployment Insurance Fund (UIF). We would like to provide some clarity on this issue, which seems to have been creating some confusion.

There has, in fact, been an increase. However, this increase has been to the limit that must be used by the UIF to calculate benefit amounts – not contributions. With effect from 1 April 2017, the monthly limit for calculating benefits has been increased from R14,872 to R17,712, as per the Minister of Labour’s notice in the Government Gazette (of 17 March 2017). The corresponding new annual and weekly limits for calculating benefits are R212,539 and R4,087, respectively.

As far as the monthly limit for contributions goes, it has not been changed yet. Therefore, SimplePay must still apply a monthly limit of R14,872 to UIF contributions calculated on the system. As a result, the maximum monthly contributions remain R148.72 for the employee and the employer. This is in line with information received from SARS and opinions expressed by well-known tax experts.

Before any changes can be made to the system, the Minister of Finance has to announce an increase to the limit that must be used when calculating contributions. Currently, there is no indication of when such an announcement will be made, and until such time that an announcement is made, the limits for calculating benefits and contributions will remain out of sync. As soon as an increase to the contribution limit is announced, the system will be updated to ensure that you remain compliant.

Even though SARS and SimplePay are correctly using the existing monthly contribution limit of R14,872, it has come to our attention that uFiling is applying an erroneously updated limit of R17,712. This has already been reported to the UIF Commissioner, and they are busy investigating and working on fixing this issue.

SimplePay users can use our direct submission function, which sends an electronic file to the UIF that bypasses the incorrect calculations being performed by uFiling. More information can be found here.

If you have any questions, you are welcome to email us at [email protected] to assist you.

The SimplePay Team

POPI – We’ve Got You Covered

With rumours circulating of an effective date towards the end of the year, there’s been a lot of fuss lately around the Protection of Personal Information Act, otherwise known as POPI.

The basic idea behind POPI is the regulation of the processing of personal information. Personal information, broadly speaking, refers to any information regarding an identifiable natural or legal person, for example contact details, demographic information and private correspondence. Processing simply means anything done with personal information, including, but not limited to collection, storage, dissemination or destruction.

So what does this mean for you in terms of your payroll data?

As an employer, you will need to ensure that your employees’ personal information is processed in a manner consistent with the spirit and purport of POPI, meaning that it must be

  • processed with the employee’s knowledge and permission;
  • linked to a reasonable purpose – such as complying with tax and labour laws; and
  • carefully managed

At SimplePay, this was the case long before POPI, as the security of your sensitive payroll data has always been one of our greatest priorities. That’s why we have taken all of the steps reasonably possible to ensure that your and your employee’s data is securely stored and only accessed when necessary by those with the required permission to do so. This is done by means of SSL encryption, regular backups to two separate off-site locations and off-site data storage in an access controlled data centre.

For more detail on how we keep your data safe and your business POPI compliant, check out our Privacy Policy and Security Statement.

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