As of 1 March 2019, all contributions made by employers to funds provided by Bargaining Councils should be treated as a fringe benefit and are therefore subject to tax. These funds include, but are not limited to sick and holiday funds for employees that belong to the Bargaining Council. Note that if the fund administered by the Bargaining Council is a retirement fund, the taxation rules for retirement funds that are effective from 1 March 2016 (and that provide for a tax deduction to reduce the taxable benefit value) are applied.
In some instances, both you (the employer) and the employee contribute to the fund. The taxable fringe benefit is equal to your contribution and should now be reported on the IRP5/IT3(a) under the following new codes:
4584: Employer contributions to a Bargaining Council Fund
3833: Taxable benefit iro Employer contributions to a Bargaining Council Fund
Employee-paid contributions do not impact PAYE (they are not tax deductible) and therefore are not reported.
What action do you need to take?
If you set up these contributions using a Custom Employer Contribution item, you need to update this custom item on your payroll or Bargaining Council template to a Custom Benefit item. This will ensure that the contribution is treated as a taxable fringe benefit.
A new checkbox has been added which allows you to indicate that the Custom Benefit item is a Bargaining Council Item. This ensures that the new tax codes are applied to the custom item.
If you have many companies and need to automate this process, please get in touch with our Support team to discuss possible solutions.
If you have any further queries, please do not hesitate to contact us.
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.
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.
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.