TERS Refund Details and Possible Extension

In store today we have the first TERS post since our coverage of the two extended periods. If you made a refund for a period we’ll explain the reporting requirements for you to remain compliant, in addition to signposting a further extension to TERS due to adjusted alert level 4.

TERS Refund Details

If for any reason you refunded any amount of TERS payments, the UIF requires you to complete a breakdown of the amounts repaid by each of your employees, as opposed to the lump sum. If you did not do this when you refunded a TERS payment, the UIF requests that you correct this.

In their email to all employers on 6 July 2021, the UIF stated that they needed an individual breakdown of refunds to reconcile TERS payments on a per employee basis to allow them to reflect these amounts on the portal.

If you’ve made a TERS refund but did not submit a breakdown of repayments, you’re required to complete the spreadsheet attached to the 6 July email and send it to [email protected] with subject line “TERS REFUND per EMPLOYEE”.

Further TERS Extension

On 11 July 2021, President Ramaphosa announced in his speech that the UIF had entered into discussions with its social partners and agreed that TERS should be extended for businesses affected by the adjusted level 4 lockdown (in force from 28 June 2021). 

There has been no further information released since the speech, but we are keeping our eyes peeled for any developments. We’ll release a further blog post on extended TERS as and when more information becomes available, so watch this space!

We hope that this information has proved helpful to you. If you have any questions for the team you can contact us at [email protected]

Not yet a client of SimplePay but would like to be? Why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe 

Team SimplePay

COVID-19 TERS Phase 2 Claim Process

Update 19 March 2021: The UIF has released a Frequently Asked Questions Document on the two extended periods. To view it, click here.

Today’s blog post highlights the salient points from the UIF’s correspondence with employers on 3 March 2021 regarding the two new extension periods for Covid-19 TERS: 16 October to 31 December 2020, and 1 January to 31 March 2021. 

Who Can Claim?

Subject to falling within one of the relevant claim codes, the TERS benefit for the extended periods is available for any employees who are registered with the UIF as a contributor and who have not been able to work normally. Each of these elements are broken down below:

Registered with the UIF

This requirement stipulates that only employees who are registered to contribute to UIF are eligible for Covid-19 TERS payments. 

Have not been able to work normally

To be able to claim the benefits for the two extended periods, employees need to fall into one of the following four categories:

CategoryDescription
Claim Code 1Employees (on temporary lay-off or reduced working time) within those sectors that have not been able to operate due to regulatory restrictions as per directives issued. A list of these sectors is detailed in the table below – to verify your company’s eligibility, the UIF will require you to provide the relevant Sector Industry Class (SIC) for your business.
Claim Code 2Employees aged 60 and above, and who cannot be reasonably accommodated at work.
Claim Code 3Employees in isolation and quarantine to prevent the spread of Covid19.
Claim Code 4Employees with co-morbidities and who cannot be reasonably accommodated at work.

Additional Info: Eligible Sectors for Claim Code 1

A list of the eligible sectors in Claim Code 1 is provided in the UIF’s correspondence on 3 March 2021, but is tabled below for your convenience:

  • Cinemas
  • Theatres
  • Casinos
  • Museums, galleries, libraries and archives
  • Gyms and fitness centres
  • Restaurants
  • Venues hosting auctions
  • Venues hosting professional sports
  • Night clubs
  • Swimming pools
  • Bars, taverns and shebeens
  • Public parks
  • Domestic and international air travel
  • Rail, bus services and taxi services
  • E-hailing services
  • Sale, dispensing and distributions, and transportation of liquor
  • Beaches, dams, rivers and lakes
  • Passenger ships
  • Venues where social events are held
  • Venues hosting concerts and live performances
  • Hotels, lodges, bed and breakfast, timeshare facilities, resorts and guest houses
  • Conferencing, dining, entertainment and bar facilities
  • International sports, arts and cultural events
  • Professional services (cleaning and security) within regulated restricted sectors (e.g. hospitality)
  • Other services and activities within regulated restricted sectors (e.g. hospitality)

When to Apply

Applications for the 16 October to 31 December 2020 period are open for employees eligible for TERS under the first category (Claim Code 1). The UIF is still tweaking their system to accommodate applications for employees eligible for TERS under categories 2, 3 and 4; they will communicate as soon as the system is ready to accept these applications.

The UIF is not yet accepting TERS applications for the 1 January to 31 March 2021 period; the opening date for these applications will be announced in due course.

How To Claim

The application process remains the same as the first extension period.  Your applications need to be accompanied by the following documentation:

  • Signed approval / acceptance letter (i.e. the Memorandum of Agreement or application, pre-signed by and for the UIF)
  • Bank Confirmation Letter (current)
  • Proof of payment to employees for previous benefits claimed and received for the prior period (e.g. EFT, payroll report, pay recon)
  • Refund to the UIF (if applicable)
  • Letter of authority

The claim for eligible employees can be captured either on the TERS online portal itself or by completing the spreadsheet template attached to the UIF’s email (also available to download here).

Unfortunately the CSV upload facility is not currently available for these applications, so it is of utmost importance that you ensure that the relevant information is captured correctly in the online portal or spreadsheet. 

To complete the application correctly, the UIF highlights the following critical data fields in particular:

FieldImportant Notes from the UIF
Monthly SalaryThis needs to be the employee’s regular monthly salary and should not be increased in line with the full application period
Remuneration Earned for Hours Worked (Yellow Column on Spreadsheet)This amount must reflect the full lockdown period’s cumulative remuneration, i.e. the amount you have paid your employee between 16 October and 31 December 2020 for the work they’ve done across this full lockdown period but not  payment of advances, leave entitlements or gifts.

Should you have any questions on any of the above, you can contact the UIF on 0800 030 007. Greater detail can also be found in the UIF’s correspondence sent to employers. 

We hope that this information has proved useful to you. If you have any questions on how the information provided relates to SimplePay, you can contact us at [email protected] 

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

TERS Update Blog: 22 December 2020

Our blog post today draws your attention to our new FAQ, based on the UIF’s TERS update letters from 15 and 18 December 2020. As TERS draws to a close, these letters, and therefore our FAQs, provide information relevant to the 16 September to 15 October application period. They also cover information on correcting earlier periods’ applications, yet to be accepted and / or processed.

You can find our FAQs on this help site page. The FAQs are:

We hope that the FAQ proves useful. If you have any questions on how the above information relates to SimplePay, please feel free to contact us at [email protected]

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

TERS Updates for September October Applications

Update 1 December 2020: Minister Nxesi has announced that the September / October TERS period will be the last of the scheme. To read the Government Gazette, follow this link.

Hello and welcome to another TERS update blog post. Our information today is taken from the UIF’s most recent update letters, which announced a post-verification audit and highlighted an issue with some applications for the most recent application period. You can read more about the 16 September to 15 October TERS application period in this recent blog post

Post Verification Audit

The UIF has announced that audits of the TERS process will begin from 1 December 2020 and will last for an estimated period of six (6) months. The audits are to be completed by a number of named companies with expertise in this area. This is in line with the Memorandum of Agreement you signed to be able to partake in the TERS scheme.

The UIF requests that you keep at least the following information readily available in hard or electronic format in case you are contacted:

  • UIF COVID TERS application pack 
    • There should be an application pack for each period which you applied to, containing the documents which you submitted;
  • Bank statements relating to your COVID TERS application(s);
  • Each employee’s HR file;
  • *Payroll report from 1 January 2020 to July 2020;*
  • Proof of payment to your employees; and
  • Proof of any refunds to the UIF (if applicable).

*Thankfully, by using SimplePay all of your payroll information is in one centralised location! We hope that this helps you with any prospective bookkeeping which may follow.

NOTE: The information listed above contains personally sensitive information for both you and your employees. Because of this we would recommend that you verify the credentials of anyone who may contact you in this respect.

Issue with SOME September / October TERS Applications

The UIF has announced that some applications received for the 16 September to 15 October period, submitted before 10AM on Wednesday 25 November 2020 did not meet their system’s requirements. As a result, they have been rejected and if this applies to you, you will need to resubmit. The UIF won’t notify you if you fall within this set of applications, so if in any doubt you should check your application status.

This issue does not apply if you applied using SimplePay’s CSV, but if you have made applications manually, this may affect the employees for whom this was done. 

Whether you submitted via CSV or manually, we recommend you log in to your TERS profile and look for the September / October applications in the Saved Employees section. If your applications appear then your submission is deemed to be correct and you don’t need to resubmit. 

If you cannot find your applications for the September / October period, you must resubmit for your employees to receive TERS benefits for this period.

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

TERS Application Period for September / October Open

We are happy to start the blog today with news that applications for TERS benefits for the period of 16 September to 15 October are now open. We mentioned this previously in our blog post on the President’s national address, but we can now provide you with more details.

The application period opened yesterday, 23 November and runs until 31 December 2020. The eligibility criteria remain the same as for the 16 August to 15 September period, with more information available on this here. As always, you need to make the claim via the TERS portal and upload the relevant documents along with your application.

First Time Applicants

It is still possible for you to apply for TERS for the first time, but it should be noted that you will only be able to apply for the 16 September to 15 October period. If you wish to claim, you’ll need to activate your profile online as soon as possible on the TERS portal, following the instructions to sign the Memorandum of Association and Letter of Undertaking.

If you experience any difficulty you can call the UIF on 0800 030 007. They will provide you with a reference number, which can be used as evidence of your efforts to comply if your submission is late. 

Bank Verification

Our last blog post on TERS covered in detail many of the problems that have arisen through the bank verification steps. If you are continuing to experience any issues with bank verification, that post may provide a useful port of call. 

As the bank verification process is fully automated, the details you provide have to exactly match those that the bank has. If in any doubt, please contact your bank to make sure that the details you input are correct.

Digital UI-19

The UIF has stated that It is ceasing to process manual UI-19 submissions. In its place, the UIF has introduced an online equivalent called Digital UI19. The aim of this is to streamline their operations and reduce the amount of manual inputting on their side.

SimplePay users, no need to be alarmed! With the exception of foreign employees, who have to be submitted separately for TERS, if you are a part of SimplePay we enable you to generate and send  your UIF submissions from the SimplePay site. Easy, we know. This in turn means you don’t have to manually input data and can avoid the dreaded typo!

Because of this, you can read the following explanation on Digital UI19 safe in the knowledge that you don’t have to get to grips with new software. 

So… Digital UI19, what is it?

Digital UI19 provides a way for employers to fill in an online spreadsheet with the relevant information, download it and then send it to the UIF, where it will be automatically processed. To us this sounds like a lot of extra typing. You could nonetheless do this and brush up on your touch typing (yawn)…

… or you could start / continue using SimplePay, make payroll a breeze and treat yourself with all that time you’ve saved!

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected] 

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

COVID-19 TERS Update

Hello and welcome to another TERS update blog 🙂 The UIF released another TERS update on 6 November, which addressed some of the outstanding issues still being experienced by TERS applicants. You can read our summary of their previous update letter from 19 October in this blog post.

Please note that if you aren’t currently experiencing issues with TERS, you don’t need to change anything on your current TERS profile or applications. However, we still encourage you to read this post in case it covers actions you need to take in the future.

Bank Verification Issues

If your TERS profile is showing that your bank verification has been unsuccessful, the UIF has released advice for certain situations.

If your company bank account was:

  1. Opened in the name of an individual – rather than using the “Trade Name” bank verification, you should use the individual’s RSA ID number to verify the account.
  2. Opened by a partnership / dual account holders – Use the “Trade Name” verification and insert the exact name of the bank account profile.

N.B. The above advice should be read alongside that provided in our previous blog post, linked here for ease of reference.

You should only make changes to your verification details if your bank account verification status registers as failed. Trade Name verification can take a number of days to be verified by your bank, so if you made the change recently, this might still be being processed.

Refunds

If you have refunded a sum to the UIF for any TERS overpayments and want a receipt for this refund, you can get this by completing the following steps:

  1. Log in to the TERS portal.
  2. On the red banner, click “Employer Details”, then Refunds to UIF.
  3. Enter your UIF reference number and Click Proceed.
  4. A table will appear with the refunds you’ve made, their amounts and the date of each refund.

Letter of Authority

If you have assigned the TERS application process to a member of staff or outsourced it, the individual needs a letter of authority in order to act on behalf of your company. Having logged on to the TERS portal, there will be a box titled “Applicant Information”. If under “Applicant Type” you select ORGANISATION STAFF or EMPLOYER REPRESENTATIVE, it is necessary to upload a letter of Authority.

The letter of authority needs to be on your company letterhead and must provide the details of your employee or employer representative. It must also state that they have had consent from the company to act for the full or the full relevant period – please confirm the dates with the UIF if you’re unsure.

UI-19s For Undeclared Employees

SimplePay cuts through admin by generating the necessary employee UI-19 forms for TERS and UIF claims for you (see our help site).

If for any reason some of your employees have not been declared to the UIF, they can’t receive TERS benefits. From 11 November 2020,  you will be able to declare these employees to the UIF by downloading and completing a Microsoft Excel template from the TERS portal. 

The Excel containing the information of any undeclared employees should then be sent to [email protected].

Switching from TERS to UIF Benefits

If your employees are no longer able to receive TERS benefits, you may wish to switch them onto claiming UIF benefits. If you do this, you must ensure that the date of termination on their UI 19 does not overlap with the last period that they had the TERS benefit claimed.

For example, if the last period for which your employees were eligible for TERS was the June period (1 to 30 June 2020), the termination date on your UI 19 needs to be 1 July 2020. If instead you selected 30 June 2020, The UIF’s system would flag this, as on 30 June your employee would receive both UIF and TERS benefits. If you submit a UI 19 form with overlapping dates there are safeguards in place to stop dual payment, but doing this will likely delay your employees’ applications.

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

TERS: Updates and Clarifications

The blog post today is aimed at trying to provide some much needed clarity on the TERS process. These changes, as outlined in a recent UIF update letter, were first introduced in our blog post from 5 October. The content of this blog post is taken from and summarises the UIF’s official update letter dated 14 October, sent to all employers.

Our post today covers:

  1.  how to determine salary and remuneration paid on applications;
  2.  the finer details of the bank verification step;
  3.  an update on foreign national applications; and
  4.  a reminder of how to end service on SimplePay.

1.a – How to Determine the Correct Monthly Salary to Declare

The monthly salary column of your TERS CSV, should reflect the aggregate of the wage and fringe benefits you pay to each of your employees. As SimplePay pre-populates this column, provided your employee’s salary information is correct, there’s nothing further to worry about. It is worth noting that if this value is not accurate, the UIF has introduced a new verification step.

The UIF is cross referencing the “taxable earnings” value for your employees’ March 2020 uFiling submission, in order to ensure that salaries are not inflated. If the values differ, the lower value will be used for the calculation of TERS benefits.

This is not a retrospective change, meaning it will only be applied to applications that have been processed from 3 September onwards. The change will though apply to all applications past this date, regardless of the lockdown period to which they relate. Unfortunately, even if you had legitimate reasons for increasing an employee’s salary, there is no way to apply to receive the higher sum that this would yield. 

1.b – What is the Correct Value for Remuneration?

To answer this question, it helps to take one step back. An employee is entitled to TERS benefits where he or she earns a reduced salary due to:

  • business closure;
  • comorbidities (an illness which puts the employee at an increased risk);
  • reduced working hours; or
  • having to take a temporary reduction of salary due to operational requirements.

Any of your employees satisfying the above can receive TERS benefits. Importantly though, where your employees receive remuneration in addition to TERS benefits for any given period, this needs to be recorded. This is because the aggregate of the TERS payment, plus the reduced remuneration paid by you cannot be greater than the amount the employee would ordinarily earn. Because of this, it’s important you know what falls under remuneration.

The UIF has clarified that all amounts / payslip components that would normally count as remuneration are included, except for loans, advances and payments related to leave taken.

2. Bank Verification

As part of the improvements to the TERS process, bank verification steps have been introduced. To help avoid delays it is important that you provide correct banking information. 

Some of the most common reasons for the failure of bank verification include:

  • The incorrect Personal ID number is used. This should be that of the bank account holder. If it is a joint account, you should ensure that it is the primary holder’s ID used.
  • If the bank account is held in a trade name, it is important that it matches the bank account’s name. 
    • If the bank account includes special characters, these should be used
    • Do not include any “t/a” sections of the bank account information
    • If the account’s name is in Afrikaans, this is how it should appear

Single Bank Account for Several UIF Entities

If you have several companies that pay into one bank account and you wish to claim TERS benefits to all the employees of the different companies, you will need to use the “Trade Name Verification” option to verify these UIF entities.

On the TERS portal, you will need to change all of your companies’ names to match the company name stated on the bank account. This will mean that you will have more than one UIF entity with the same name on the TERS portal, but also allows you to apply for benefits for all employees.

If you are at all unsure about this we would encourage you to get in touch with the UIF on 0800 030 007.

3. Foreign Nationals Update

The UIF has said that it’s currently working with the Department of Home Affairs to verify the foreign nationals. No payments will be made until the UIF has verified individuals’ identities, but it hopes it will manage this within the next fortnight.

Foreign nationals must be declared via uFiling, regardless of whether you submitted their declarations to the UIF using SimplePay.

How To Change Existing Applications

If you now realise that there’s an issue with one or more of your applications, this can be done using the UIF’s discrepancy function. Corrections can only be made once per employee, per application period so it’s crucial that you make the amendments carefully and accurately.

The discrepancy functionality is open for claims made up to and including the July / August application period, and will open in due course for the later lockdown periods.

How To End Service on SimplePay

It is important to correctly reflect your employees’ current working status on SimplePay for several reasons. Having this information allows:

  • SimplePay to provide you with accurate auto filled TERS CSVs;
  • you to make correct submissions to SARS;
  • Your employees to claim UIF where necessary; and 
  • Reduces your monthly charge to the number of active employees

To allow for SimplePay to provide you with accurate auto filled TERS CSVs, make correct submissions to SARS and reduce your monthly premium to an appropriate amount, it is important to correctly reflect your employees’ current status on SimplePay.

For a reminder of how to end an employee’s service on SimplePay, you can read this previous blog post.

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected] 

Equally, if you are not yet a client of SimplePay but would like to be, why not try out our service free? You can sign up for your free 30-day trial here, get to grips with our user-friendly service by reading our getting started page, or try our free online course. Concerned about cost? Don’t be; we’ve simplified that too – check out our pricing page. Alternatively, you can request a formal quote if you need one here.

Keep well and stay safe.

Team SimplePay

TERS Update and September Recap

Another month has passed by meaning that it is time to reflect on September’s events, as well as see what October has to offer. September has been an eventful month, with the country entering level 1 of lockdown and so triggering a number of changes. This is a good thing, providing more freedom for businesses to reopen and recover. 

In our blog today we will be giving you updates on some of  the changes brought about by level 1 of lockdown, as well as updates on the TERS process after its recent rehaul.

TERS Update

Update 5 October: Due to a water leak, the office running TERS operations is experiencing some downtime. They expect the issue to be resolved by the end of today.

Since our last blog covering the TERS process on 15 September, the UIF has significantly updated its safeguards. The process had to be halted in order for the UIF, now headed by acting commissioner Marsha Bronkhurst, to address the findings of the auditor general. 

On 21 September, after a two week pause, the UIF restarted its newer and better constituted TERS process. A key change is better bank verification, where you can opt to use your company’s CIPC / CK number, RSA ID number or the trade name which is linked to the account. 

You should be careful to ensure that the information you enter exactly matches the bank’s records. The UIF has advised that the verification steps won’t take place till you’re next due to receive payment, meaning that unless instructed otherwise by a notification on your TERS profile, any amendments you’ve made are either still to be checked or are correct.

Applications for 16 August to 15 September

Applications for TERS benefits between 16 August and 15 September opened last Thursday (1 October 2020). Before applying you must ensure that your employees were still eligible for TERS benefits during this period, i.e. 16 August to 15 September.

For more information on the application period and eligibility requirements, you can read this Department of Employment and Labour media statement.

Duration of the TERS scheme

The COVID-19 TERS Direction from 7 September 2020 gave us some clarity on how long this support will last. In summary, based off this Direction, TERS will come to a conclusion either:

  • When South Africa is no longer under a national state of disaster (currently due to end on 15 October); or
  • When the Minister announces its conclusion on an earlier date.

Level 1 – Effect on Businesses

The key effect of level 1 is that it allows almost all normal commercial activity to resume. Below we have summarised some of the key changes that affect economic activity.

Gatherings

Provided that the safety measures are followed, gatherings are now permitted up to 50% of a venue’s capacity. This is up to a maximum of 250 people for an indoor venue, or 500 people for an outdoor venue. 

An owner or operator of a venue where gatherings are held must display a certificate of occupancy, listing the maximum number of people permitted. The certificates are provided by your local municipality, meaning that you should be able to find out how to get one from their website.

Travel

Level 1 brings extremely positive news if you operate in the hospitality and travel industries. From 1 October, international travel is permitted, both into and from South Africa for business and leisure. We hope that this will provide a boost in business after what must have been an extremely trying time.

For travel by air, this is subject to the travellers country of origin not being on the red list, in addition to other safety measures such as the traveller providing a negative test upon arrival which is less than 72 hours old.

All 18 land borders are now open, subject to safety requirements and border post limitations. All docks are now also open, but passenger liners for luxury travel are still prohibited to disembark.

We hope that the timing of this change has been a good one and that October will mark a revival in your business.

You can find more information about travel restrictions on this Government page, under Alert level 1.

Economic Activity

Providing that all the relevant health protocols, social distancing measures, occupational health and safety direction and sector-specific health protocols are met, businesses can carry out economic activity. We hope that this is a positive and meaningful change for your business, that will help speed your recovery over the coming months.

Unfortunately the return to business is not universal. The  following list of activities are still not permitted at the date of writing:

  • Night vigils
  • Night clubs.
  • The 35 land borders that remain closed.
  • Initiation practices.
  • Passenger ships for international leisure purposes.
  • Attendance of any sporting event by spectators.
  • International sports events.
  • Exclusions relating to public transport services as set out in the directions issued by the Cabinet member responsible for transport.
  • Exclusions relating to education services as set out in the directions

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected] 

Equally, If you are not yet a client of SimplePay but would like to be, why not try out our service on the house? You can sign up for your free 30-day trial here. Get to grips with our user-friendly service by reading our getting started page, or trying our free online course. Concerned about cost? Don’t be; we’ve simplified that too – check out our pricing page. Alternatively, you can request a formal quote if you need one here.

Keep well and stay safe.

Team SimplePay

Filing Reminder and TERS Update

In the blog today we are writing to remind you about both the interim employer reconciliation and the individual income tax return deadlines, in addition to an update on COVID-19 TERS. Both of the filing submission periods are now open and we recommend that you complete your submissions in good time to avoid any complications.

Employer Interim Filing Season

This year the employer interim reconciliation submission period will run between 14 September and 31 October 2020. Within this period you will need to submit your EMP501 return and your employees’ IRP5 / IT3(a)s to consolidate the period between 1 March and 31 August.

As mentioned in our previous blog post, SimplePay automatically generates these forms from your previous submissions, with all the latest legislative changes taken account of. All you need to do is log onto [email protected] or eFiling and submit the required forms. It really is that easy!

Manual Individual Income Tax Return 

If you have already completed SARS new auto assessment process in August, as covered in this blog post, then you have already met your obligations and don’t need to do anything further. This reminder applies to you if you rejected or did not receive an auto assessment from SARS, but need to complete an individual income tax return.

If this is you, the submission period for individual income tax returns is between 1 September and 16 November 2020 if you are filing online. You can log into eFiling or the SARS Mobi App to complete your manual return.

COVID-19 TERS Update

The past few weeks have been challenging for the UIF with respect to COVID-19 TERS. The audit carried out showed a number of shortcomings in the validation steps for applications, which led to various misallocations of funds. As a result payments were halted on 11 September and access to the TERS portal was down over the past weekend to maintain and improve the process’s safeguards. The resumption of the payouts is yet to be announced, but we shall endeavour to let you know when this happens.

An additional point of note is that for those that meet the application requirements, TERS benefits have been extended to 15 September. The application deadline for this period is 30 October, after which no new applications will be accepted.

For all other application periods i.e. March to 15 August, the deadline for new applications is 17 September.

Update 16 September: The closing dates for new have been changed  as follows:

 New applications for March to end of May the deadline is now 25 September 2020. 

New applications for June the deadline is now 15 October 2020.

New Applications for July to 15 September the deadline is now 30 October 2020.

The media statements on the audit findings can be found here and the announcement of an extension to COVID-19 TERS can be found here.

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]

Equally, If you are not yet a client of SimplePay but would like to be, why not try out our service on the house? You can sign up for your free 30-day trial here. Get to grips with our user-friendly service by reading our getting started page, or trying our free online course. Concerned about cost? Don’t be; we’ve simplified that too – check out our pricing page. Alternatively, you can request a formal quote if you need one here.

Keep well and stay safe.

Team SimplePay

End of Week Blog: 14 August

As we approach the halfway point for the month of August, today’s blog post will be looking at recent  COVID-19 TERS announcements, updates from SARS and a recap of some of our recent blog posts.

TERS Update

On 12 August, the Department of Employment and Labour announced that the opening of TERS applications for July / August will be on Monday, 17 August. This followed the Minister signing a Directive on the application of TERS for these months.

The Directive states that for the July / August period, applications can be made for employees whose employers are:

  1. not permitted to commence operations under the Disaster Management Regulations; 
  2. unable to make alternative arrangements for vulnerable works, (e.g. working from home or taking special measures); or are
  3. unable to make use of their employees’ services, due to restrictions to the permitted active workforce, caused by compliance with Directions and Regulations, such as staggered working.

The application process should be the same as for the previous months, with proof of disbursements to employees being required if you are selected to act as a conduit, in addition to the bank verification process.

To read the Directive, its explanatory memorandum, or an updated set of FAQ’s for the upcoming application process, you can visit this Department of Labour webpage

Reminder: Employer Interim Reconciliation Submission

The interim employer reconciliation period which runs between March and August ends this month, meaning that you will need to submit your EMP 501 and IRP5s / IT3(a)s next month. The submission period opens on 15 September and concludes on 31 October.

[email protected] BETA Testing

SARS is currently running final tests on the latest version of [email protected] in time for Employer Interim Reconciliation in mid-September.

Enhancements will include:

  • New source codes on the IRP5 to incorporate the legislative changes 
  • New letters regarding Remittance of Penalties and Interest, Notice of Non-Compliance Penalty 
  • Amended letters regarding excessive liability changes on the Employer Reconciliation, Employment Tax Validation, Notice of Assessment 
  • Amendment of PAYE dashboard 
  • Upgrade of the BETA Testing site 
  • Resubmission of rejected EMP501 reconciliation 
  • Time out while downloading a new version of [email protected] Employer 
  • New summary report of all certificates included in the EMP501 Reconciliation 
  • Synchronisation of eFiling and [email protected] Employer logons 

We are incorporating all the new codes and tax rules to our system, meaning that come September you can automatically generate the IRP5s / IT3(a)s and EMP501 needed, and submit them to SARS. Easy as that!

NEW FEATURES AND UPDATES

PAYE vs Income Tax

We have changed the labelling of Pay As You Earn (PAYE) on payslips from “Tax” to “Tax (PAYE)”. If you’d like to know more about our reasons for us doing this and the differences between the various forms of income tax, take a read through our blog.

Family Responsibility Leave

We have updated the name of Compassionate Leave to Family Responsibility Leave on SimplePay, to align our site more strongly with the Basic Conditions of Employment Act. You can read more about this in our blog post.

Self-Service Employee Claim Request

We’ve expanded our self-service features to allow employees to claim expenses, travel allowances and custom items of various input types.

If you’d like to opt-in for these new and expanded features, you can find out how and read more about them here.

Employee Filtering Revamp

Having had requests to switch up how you’d like to be able to filter employees on SimplePay, we’ve listened and made some changes. You can read about our newly introduced and adapted filters in our blog post from 4 August.

RECAP

Easing of Tourism Restrictions

On 30 July, we updated you on the new rules for the tourism industry under level 3 of lockdown. You can read more about these relaxations here.

Business Turnaround and Recovery Programme

The Business Turnaround and Recovery Programme is aimed at intervening to help companies in distress or decline to re-strategise and put their business back on to a profitable trajectory.

If this sounds an interesting prospect, you can read more about the eligibility criteria and how to apply in our blog post.

We hope that you have found the above information useful. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]  

Equally, if you are not yet a client of SimplePay but would like to be, or if you’d like to know how we can take the effort out of filing and calculating payroll, get in contact with us or visit our website.

Keep well and stay safe.

Team SimplePay