Recap for June

Welcome to the second half of 2020! The year so far has been a bumpy ride and while we realise that the journey is not yet over, we’d like to take a moment to acknowledge and thank you for your support during these first six months. Over this period we have strived for continued excellence in meeting your payroll needs despite the challenge of ever-changing regulations and processes, and thank you for your patience and understanding during periods of high support queries.

As we move forward into the latter half of 2020, here’s a quick recap of the new features and pertinent information from the last month:

NEW FEATURES

Amongst other smaller or less visible improvements and updates, our fantastic development team managed to introduce the following new features in June:

Web View for Payslips

The web view for payslips allows you to see the payslip items that do not impact nett pay directly without having to open the PDF version of the payslip. This view also gives you access to additional traces, such as UIF. Read more.

UIF, SDL, and Retirement Deduction Traces

The web view for a payslip now allows you to see traces for how UIF, SDL and retirement deductions are calculated. Read more.

ETI Breakdown and ETI Trace

A new web view for EMP201s was introduced, with an ETI breakdown and ETI trace, allowing you to see exactly how the ETI on an EMP201 is calculated. Read more.

Download UIF Files and Responses

The introduction of TERS lead to an increased importance being placed on the UIF DecIaration and its timely, monthly submission. In response, we expanded our functionality to include downloads of the actual file submitted to the UIF, as the responses for the UIF submission. Read more.

Deleting Leave Requests

We expanded our functionality for deleting leave to provide a breakdown of leave that cannot be deleted as they are part of a finalised payslip. We also allow the option of deleting leave requests superficially or its entirety. Read more.

End Service Checklist

The End Service Checklist reminds you about positive leave balances, savings and employer loans when ending an employee’s service from their profile. Read more.

Wow! All of that in one month! Pretty cool, right? 

Besides cool features, we also brought you important information updates. This is covered in the next section. 

IMPORTANT INFORMATION

Additional COVID-19 ETI

The rules for the additional ETI as a relief measure were amended by the government. Our system has been updated to factor these new rules in, so that it’s one less thing for you to worry about. Read more

Advance TERS Payments

We clarified how to deal with situations where you wish to provide advances to employees for TERS payments that are delayed or still being processed by the UIF. Read more.

TERS May and June Applications

The June applications for TERS opened and then subsequently were halted due to technical issues. They are likely to reopen over the weekend or early next week. The May application remains open. Read more..

POPI

The Protection of Personal Information Act came into force and became law on 1 July. Due to our stringent security measures, SimplePay has been compliant with these regulations long before they even came into effect. Read more.

We hope that the second half of the year marks a turning point and sees things improving and normalising. Whatever the coming months hold, we’ll continue to be here to support you and remain committed to providing you with high quality support, informational updates and maybe even a few more features.

If you require assistance, please head over to our extensive help site, which we are regularly updating. If your query cannot be answered using the help site, please reach out to our support team.

Not a SimplePay client but interested in the functionality mentioned in this blog post? 

The good news is that we offer a 30 day free trial and sign up is a breeze! You can find out more and sign up for a trial here. Join now and experience the joy of stress free payroll and SARS filing for years to come 🙂

Team SimplePay

New Feature: UIF, SDL and Retirement Deduction Traces

In our blog post on 5 June, we announced a new ETI trace, which shows the ETI calculation for each employee. Today, we are happy to announce that we have also created traces for the UIF, SDL and Retirement Deduction calculations.

To view these traces, go to an employee’s profile, click on More  next to Preview to  open the web view of the payslip that you are on.

Click on any of the following to open the trace for that payslip item:

  • UIF – employee (new)
  • UIF – employer (new)
  • SDL – employer* (new)
  • Retirement deduction (new)
  • Tax (existing)

When you open the UIF trace, you will then be able to click on Income Subject to UIF to view how the income used in the UIF calculation was determined.

Similarly, when you open the SDL trace, you will be able to click on Income Subject to SDL.

*Reminder: the government has provided an SDL holiday until the end of August. The SDL trace will therefore only be available for payslips after August.

We hope these new features help you to answer some of the questions that you may have on how these payslip items are calculated, so that you can more easily check your payroll and also answer questions that employees may have.

If you need any assistance with these new features, please reach out to our support team.

Team SimplePay

New Feature: ETI Breakdown and ETI Trace

Despite the craziness of the COVID-19 pandemic, we continue our commitment to giving you the best payroll experience. Our team have been hard at work to bring you a web view of EMP201, an ETI breakdown and an ETI trace:

You can now see the information contained in the monthly EMP201s without opening the PDF version of the document. To do this, go to Filing > Monthly Submissions and click on Web in the EMP201 section.

The EMP201 for the month will be opened, showing you a breakdown of the EMP201 figures. You can now see more details for ETI by clicking on the amount next to ETI Calculated.

This will give you a breakdown of the ETI calculated for each employee:

You can then click on the amount next to an employee’s name to see a the ETI Trace, which shows how the ETI for that employee is calculated.

If there is no ETI calculated for the employee, the ETI trace will also show you if the employee has not been enabled for ETI, if they do not meet certain criteria, or if their earnings fell above the ETI threshold.

Pretty cool, right? We hope you love these new features.

If you have any queries regarding the new feature or the information that it contains, reach out to our Support team.

Team SimplePay

New Feature: Show More Payslip Info

When capturing payroll from an employee’s profile, our approach has always been to display only the payslip items that impact nett pay directly. This makes it easier to view exactly what impact (if any) the payslip item has on the salary or wage that the employee actually receives.

To view other payslip items, like statutory employer contributions or fringe benefits, you can click on the Preview link to view the employee’s payslip. We are now delighted to introduce a new feature that allows you view these other payslip items without opening the payslip. Clicking on More next to the Preview link will display all the payslip items from the payslip on the screen.

On the left hand side of the screen, you will see all the items that appear in the payslip section that are used to calculate nett pay. On the right hand side, you will see the other payslip items that do not impact nett pay directly (i.e. they are not directly added or subtracted to get the nett pay – however, they could impact the nett pay indirectly by influencing the tax calculation, which impacts nett pay).

We hope this new feature for viewing payslips faster makes payroll even simpler.

Team SimplePay

Additional COVID-19 ETI Changes

In a previous blog post, we informed you of additional ETI as a COVID-19 relief measure. The revised Disaster Management Tax Relief bills have given rise to some changes:

  • The ETI claimable for those in the R0 – R1 999.99 bracket has changed, retrospectively effective from 1 April 2020.
  • Employees with an appointment date before 1 October 2013 are now eligible for the Additional ETI, retrospectively effective from 1 April 2020.
  • As with normal ETI, remuneration should be grossed up and additional ETI for April should be grossed down proportionately if an employee is employed for less than 160 hours per month. This grossing up of remuneration and grossing down of ETI no longer applies, effective 1 May 2020.
*The ETI amount changed for this bracket
** The employee’s wage must not be less than the higher of the minimum wage specified by a wage regulating measure and by the National Minimum Wage Act. This will need to be configured under Settings > Payroll Calculations > ETI.

SimplePay has implemented these changes to the system and automatically applied it to all payslips for April (even finalised ones). Therefore, all you need to do is:

  • Finalise the new EMP201 that is automatically generated by the system
  • Submit the new EMP201 information to SARS

Please also note:

  • The additional ETI is applicable until 31 July 2020
  • To qualify for the additional ETI, the employer must have been registered for PAYE after 25 March 2020
  • Employers that are not subject to a wage regulating measure AND that are exempt from the National Minimum Wage Act are not eligible from the additional ETI benefits for May – July 2020.

For more information, head to our help pages:

If you need further assistance, please contact our support team.

Team SimplePay

New: Foreign Employees Notification

In our blog post on 27 May 2020 we informed you that the Department of Labour and UIF now recommend that declarations for foreign employees be captured on uFiling. SimplePay has now introduced a new notification for foreign employees. When clicking on Submit for a finalised UIF Declaration, the confirmation screen will include an alert for the number of foreign employees included in the UIF Declaration being submitted. You can then log into uFiling and complete the declaration for those foreign employees.

For more information on UIF Declarations, head to our help page here.

If you require further assistance, feel free to contact us.

Team SimplePay

Interest Rate Change for Employer Loans

In an effort to manage the effects of the COVID-19 lockdown on the economy, the Reserve Bank has announced a further historic cut to the repurchase rate (repo rate). The repo rate will be cut by 50 basis points, from 4.25% to 3.75%, effective 22 May 2020.

The change in repo rate impacts the “official rate” used to calculate the fringe benefit on employer loans. The official rate is set at an interest rate of 100 basis points above the repo rate and any changes in the repo rate will only affect the official rate from the beginning of the next month. The official interest rate for employer loans will therefore change from 5.25% to 4.75% effective 1 June.

As always, you do not need to take any action to implement the new interest rate. We have already updated the system to reflect these changes. All employer loans on payslips dated from 1 June 2020 will make use of the new interest rate. As our system is built to be intuitive, any payslips dated before 1 June 2020 will make use of the previous interest rate.

You can find more information on employer loans on our help page here.

If you have any questions, please do not hesitate to contact our support team.

Team SimplePay

Submitted Files of UIF Declaration Now Available

One of the benefits of being a SimplePay user is that you can submit your UIF Declarations (UI-19 forms) directly to the Department of Labour with the click of a button. This allows you to completely bypass uFiling, making the filing process more convenient and less time consuming.

The data in the UIF Declaration is submitted to the Department of Labour in the required file format. For readability and user-friendliness purposes, SimplePay provides you with PDF and Excel versions of these UIF Declarations. We have now expanded our UIF functionality for successful submissions to include a download of the submitted file. While the format of these files may not be as useful for payroll administration, they do serve as a record of the actual file submitted, should there be any queries or disputes with the Department of Labour.

To download this file:

  1. Go to Filing
  2. Navigate to the relevant month
  3. Under the Electronic Status heading in the UIF Declaration section, the status should be “confirmed” (Note: the file is only available for successful submissions)
  4. Click on the icon next to “confirmed” to download the file

Please note: Should you need to open these files, you will need to rename the file to include “.csv” at the end (and remove the abbreviation for the current file format). This will allow you to view the file in Excel, Google Sheets or another spreadsheet application.

For more information about monthly submissions, head to our help page here.

If you require any assistance regarding this functionality, please do not hesitate to contact our support team.

Team SimplePay

New SARS Code and System Item for Disaster Relief Funds

There are several organisations outside of government, such as the South African Future Trust (SAFT), providing COVID-19 relief funds for employers to keep paying their employees. The relief is usually offered in the form of a loan to employers and is paid directly to employees. To assist with the special tax treatment and reporting requirements for these payments (see below), SimplePay has created a new system item: COVID-19 Disaster Relief.

Tax Treatment

As outlined by the Disaster Tax Relief Bill, these payments are not included in remuneration for PAYE, SDL and UIF and therefore are not subject to tax. Although these payments are not included in remuneration for PAYE, SDL and UIF, they are included in remuneration for the purposes of calculating ETI.

Reporting on Tax Certificates

SARS has created a new tax code, 3724, for reporting these payments on IRP5s/IT3(a)s. This is outlined on the SARS website here.

Using the COVID-19 Disaster Relief System Item

To make use of the new system item created by SimplePay:

  1. Go to an employee’s profile
  2. Click on Add next to Payslip Inputs
  3. Under Other, select COVID-19 Disaster Relief
  4. Enter the Amount of the relief paid to the employee
  5. Click Save

You will notice that the payment is listed on the payslip as a Benefit and does not impact the Nett pay payable to employees. This is because the relief payments are made directly to employees by the organisation. The system item is simply used for satisfying the tax and reporting requirements and not to facilitate payments.

These details are also outlined in our help page here.

Should you need further assistance, please contact our support team.

Team SimplePay

Form UI-2.7 for Employees Terminated with Codes 9, 10, 17, 18 or 19

We recently introduced the functionality to download pre-populated individual UI-19 forms for employees so that you do not need to manually complete these. We have now expanded this functionality to generate UI-2.7 forms alongside individual UI-19 forms. These are applicable to employees that remain employed with the company, but are terminated on the system using the following UIF status codes:

  • 9 – Maternity
  • 9 – Adoption 
  • 10 – Long-term leave due to illness
  • 17 – Reduced Working Time
  • 18 – Commissioning Parental
  • 19 – Parental

When selecting one of these codes, two additional fields will appear:

Expected return date: This is the date that you expect the employee to return to work. It is imperative that this is completed correctly, as it is used to generate the UI-2.7 form. If the employee’s date of return is later extended, you will need to update it here in order to update the UI-2.7 form.

Paid During Temporary Absence: If you select this checkbox, the system will still generate payslips during the employee’s period of absence, and no UI-2.7 form will be available. If you do not select this checkbox, no payslips will be generated for the employee during their period of absence and a UI-2.7 form will be generated for the employee. 

To download the UI-2.7 form generated by SimplePay:

  • Go to the employee’s profile after ending their service.
  • Click on Manage End of Service.
  • Click on the PDF icon under Service Period History.

The first page of the PDF document will be your UI-19 form and the second page is the UI-2.7 form.

For more information on ending an employee’s service, visit our help site here.

Team SimplePay