New Process for Company Transfers

At SimplePay, the protection of your data and privacy is of utmost importance to us. With that in mind, we’re changing the way that we do company transfers. Our new 4-step process makes company transfers even more secure and gives you greater control over the process. 

Company transfers involve moving a company from one SimplePay profile to another. Transferring the company will change which profile owns the company on SimplePay and consequently which profile gets billed for the company.

It is important to note the following, which often causes confusion:

  • Ownership of a company on SimplePay is not necessarily related to the actual ownership of a business. When a new company is added to SimplePay, it belongs to the profile that the user was logged into when creating it. For example, a small business may be owned by an entrepreneur, but the company’s payroll is managed by an accounting firm. If the company was added to the accounting firm’s profile, the accounting firm is the owner of the company on SimplePay, even though they are not the owners of the registered business.
  • The need for company transfers must not be confused with the need for different users. If you need to give or revoke an individual’s access to a company, this can be done by adding or removing the individuals as users. (The exception being that you cannot remove the account owner i.e. the user with the email address used to create the profile that owns the company).

The following examples illustrate when company transfers are necessary:

  • A business’s payroll is managed by an accounting firm and the business now wishes to process their own payroll. The company on SimplePay would be transferred from the accounting firm’s profile to the business’s profile.
  • A business is sold. The previous owners should no longer have ownership of the company on SimplePay. The company on SimplePay would need to be transferred from the prior owner’s profile to the new owner’s profile.

If you have determined that a company transfer is necessary, you will need to follow our 4-step process for company transfers, which is outlined in the following help article:

Can I transfer a company to a different profile?

Not a SimplePay client but want to enjoy the benefits of secure payroll? Unfortunately our payroll system is only available to clients. 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. Come and experience the joy of stress-free payroll.

Team SimplePay

Repo Rate and Employer Loans Interest Rate Cut

Update 29 July 2020: We have updated the system to reflect the changes to employer loans benefit calculations. All employer loans on payslips dated from 1 August 2020 will make use of the new interest rate. As our system is built to be intuitive, any payslips dated before 1 August 2020 will make use of the previous interest rate.

In a historic, yet somewhat expected announcement, the Monetary Policy Committee has cut the repurchase rate (repo rate) by 25 basis points. This brings the repo rate to an all-time low of 3.50% per annum, effective as from tomorrow (24 July 2020).

The official interest rate, which is used to calculate employer loan benefits, is set at 1% above the repo rate. The new official interest rate will therefore be 4.5% per annum, effective 1 August 2020. Although the change in the repo rate is effective tomorrow, income tax legislation prescribes that changes in the official interest rate only occur at the start of a new month.

Being a SimplePay client means that you’ll benefit from updates to the system without having to install these updates or make any manual changes to your settings. You simply process payroll as normal and our system will use the correct official interest rate for the period of the payslip. Our development team are busy making the necessary system updates for the latest interest rate change and we’ll let you know as soon as they’re ready. This means that you should not yet finalise payslips for August for those employees with outstanding employer loans.

For more information on employer loans, head to our help page.

Not yet a SimplePay client but want to experience seamless payroll no matter what changes in legislation or policy occur? 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. Come and experience the joy of stress-free payroll.

Team SimplePay

New Feature: EMP201 Breakdowns and Variances

If you’re managing a business or department, you know the importance of tracking variances and maintaining an audit trail. Similarly, if you manage the submissions to SARS, it is important to be able to track any changes to your payroll which impact your submission and resubmit if necessary. What if there was a way to make these easier? Well now there is! Introducing the expanded EMP201 web view.

In a previous blog post, we introduced the ETI breakdown, accessible from the EMP201 web view. We have now applied the same concept to other areas of the EMP201, with breakdowns available for PAYE, SDL and UIF. 

Each breakdown shows a list of your employees and the total PAYE, SDL or UIF calculated for each employee. 

Remember, you can view the PAYE, SDL and UIF trace for each employee by going to their profile (announced in this blog post).

We have also created a variance feature for months where more than one EMP201 has been generated. Remember, if you make changes to your payslips after your EMP201 is finalised, a new EMP201 is generated so that you have a clear audit trail for resubmitting to SARS if needed. The breakdowns for any updated EMP201s now also show the differences between the PAYE, SDL, UIF and SDL in the updated EMP201 compared to the previous EMP201. The differences are shown per employee and the total difference is shown at the bottom of the breakdown.

We hope you love this new functionality and the benefits that it provides.

Need more information? The following help articles may be useful:

Not a SimplePay client? The EMP201 form and all functionality covered in this blog post and on our help site are only available to SimplePay clients. 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. Come and experience the joy of stress-free payroll.

Team SimplePay

New Feature: End Service Checklist

You asked us for a way to help you remember to capture the necessary payslip items associated with employee terminations, and we’ve been listening. Introducing our newest feature: the End Service Checklist.

When ending an employee’s service on the system, there will now be a pop up if the employee:

  • has a positive leave balance that you need to pay out
  • has a savings balance that you need to pay out 
  • has a loan balance that still needs to be paid

If you are capturing the termination and the employee only has the last payslip as a draft (i.e. prior payslips have been finalised), you can click on each item in the checklist to open the system item where action is needed.

More information on these topics can be found in the following help articles:

Please note: Expansion of this feature is in our pipeline. At this stage, this new checklist only works for:

  • employees terminated individually, not in bulk.
  • positive balances (i.e. if an employee’s leave balance is a negative, then it will not appear on the checklist).

We hope this new feature is everything that you imagined it would be, and more!

If you need assistance with any of these payslip items, please contact us.

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

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

COVID-19 Lockdown – 27 March to 16 April 2020

Update 21 April: The Department of Employment and Labour has opened a dedicated UIF toll free hotline, running 8am – 10pm Monday to Friday. The number is 0800 030 007.

Please note: The information provided in this blog is correct at the time of writing, but as this is an unprecedented and ever-changing situation, we will do our best to ensure we keep ourselves and our clients up to date. Please check back regularly for updates – we will also notify you of these by email and system notifications.

Should you have any queries over the content or processes to follow within this blog, please contact our support team via [email protected]

A Note on UIF Forms: Our existing functionality allows you to submit the monthly consolidated UI-19 for all employees each month directly to the UIF from the SimplePay website. We’re glad to inform you that the new functionality providing UI-19 forms for individuals is now live. This is needed for employees to claim.

Queries about UIF payments being delayed should be directed to the UIF. Unfortunately we won’t be able to provide much insight or assistance with this. Contact details for the UIF processing centre can be found in this the Easy Aid Guide for Employers.

7 April 2020: Closure of the labour offices for in person applications. Rechannelling  of applications to interactive methods.

30 March 2020: Information on the option for employers to complete the UIF application on behalf of their employees. Further UIF code 10 is unpacked, related to employees who fall ill.

27 March 2020: 

  • Greater detail on the process required to submit both types of UIF applications has been added, including who is responsible for each part of the process.
  • More information on what is required when handling employees with reduced hours, to enable them to claim a benefit.
  • Clarification on the different codes required when ending your employee’s service in different situations.
  • Brief update on the progress of TERS at the foot of the blog.

26 March 2020: Updated the requirements for form UI 2.8 to be accompanied by a bank statement, stamped by the bank.

On Monday 23 March, President Ramaphosa announced a 21 day lockdown from 23:59 on Thursday 26 March. Many South Africans welcomed this but are also uncertain as to what this means for their employees and businesses. Over the past few days, the respective Governmental Departments have released information regarding plans to support companies and their employees through the COVID-19 pandemic. 

The aim of this blog is to provide guidance to employers on the options available to them around paying employees, putting them on paid and unpaid leave and UIF benefits.

Earlier in the week we let you know that our team has gone fully remote and are pleased to be able to support our clients and employees in this way. In some sectors, this mode of working can be adopted relatively easily and many have already done so; however, for a lot of sectors and employees this is unfortunately not an option. For those employers who have to scale back or suspend regular activities, the following options exist:

Options for Healthy Employees Impacted by Reduced Hours or Temporary Closure 

Where employees are healthy and able to work, but are prevented from doing so due to the lockdown, employers and employees can agree that annual leave be used to cover some or all of the lockdown period on full pay. You are also always able to extend extra paid leave days to all employees should you so wish.

Where none of the paid leave types are an option, employees can be put on unpaid leave. Employees impacted in this way are able to claim Unemployment Insurance Fund (UIF) benefits as a result of either reduced hours or closure. To do this on SimplePay, you will need to provide a code when ending your employee’s service. Please use code 17 for temporary closure or reduced hours, i.e use this code if employees are expected to return to work on 17 April 2020. It is important to note that you must end the employee’s service on SimplePay. If you simply record unpaid leave on the calendar, UIF will not be claimable by employees.

The government intends to extend UIF benefits for these employees for up to three months. Employees who receive no income will be entitled to full UIF benefits.

If you’re paying your employees reduced pay, a partial UIF benefit will be available. For this benefit to be available, there must be an agreement between the employer and their employees to reduce hours as an alternative to retrenchment.

Procedure for Healthy Employees Impacted by Reduced Hours or Temporary Closure to Claim UIF benefits

To claim UIF for a reduction in hours or temporary closure, the following must be completed:

  1. Contact and inform the relevant provincial department representative of your temporary closure/reduction in hours. The contact details for each of the offices can be found on page 3 of the Easy Aid Guide for Employers.
  2. The following forms and documents need to be completed for each employee:
    1. UI 2.1 (application form)
    2. UI19 (Submitted monthly by the employer) and UI 2.7 (completed by Employer)
    3. UI 2.8 (accompanied by a bank statement, stamped by the bank)
    4. A letter from the Employer confirming company shutdown or employee’s “temporary lay-off” ( or reduced work time ) is due to the Corona Virus 
    5. Copy of Employee’s ID document
  3. Once completed, these forms need to be submitted to the UIF. Claims can be done online once the employee has registered, or via email or fax, details listed on page 7 of the Easy Aid Guide. The UIF processing centres are now closed over lockdown and cannot be used. If an employer wishes to do this on behalf of their employee, provided they have all the necessary information, this is possible by emailing the relevant processing centre with the required documents. ( n.b. Form UI2.8 could prove difficult for the employer to obtain now that lockdown is in force).
  4. To ensure the employee can claim, the must ensure they have:
    • A copy of 13-digit bar-coded identity document
    • A copy of your last six payslips
    • UI-19 supplied by your employer
    • A service certificate from the employer (point 2.4, provided by the employer)
    • Proof of registration as a work seeker
    • A fully completed registration form

This may appear a daunting number of forms, but it is worth noting that the provincial departments, listed in the Easy Aid Guide, will provide the necessary assistance with the application and payment of this benefit type. SimplePay is also in the process of making these forms available through our system, lessening the burden on you and reducing the chance of human error.

Additionally, if your business employs 50 or more employees, who may be subject to temporary lay offs, rapid response teams have been formed to aid you with this process. In respect to this you need to get into contact with your provincial office, as listed in the Easy Aid Guide.

Options for Employees who are suspected or diagnosed with COVID-19

The requirement that an employee suspected of, or is diagnosed with COVID-19, must self isolate for 14 days remains in place. This period can be covered using an employee’s sick leave as with any other instance of illness. If the employee has no sick leave, you can agree to have them use annual leave otherwise they may be placed on unpaid leave. As above, the option to grant additional paid leave is also available. For all of these, record leave on SimplePay as usual.

Where the employee has had to be placed on unpaid leave as a result of contracting COVID-19, the following options to receive some income exist:

  1. Apply for an illness benefit through UIF 
    1. This covers the 14 day isolation and requires several documents, including a letter of agreement signed by employer and employee. 
    2. This period can be extended if required. 
    3. Full details on documents required and the application process can be found at the end of this post.
  2. Apply for compensation for Occupationally Acquired COVID-19 Disease, through the recently amended Compensation for Occupational Injuries and Diseases Act (COIDA)
    1. This is available if the employee contracted COVID-19 in their place of work or on a business trip to another country or area.
    2. More details can be found in this Government Notice and the process to claim is outlined at the end of this post.

Procedure for Employees who are Suspected or Diagnosed with COVID-19 to Claim UIF benefits

To claim UIF for an illness benefit, the following must be completed:

  1. Fill in the following forms:
    1. A confirmation letter from both the employer and employee, stating that they have agreed to 14 days of “special leave”, due to COVID-19.
    2. UI 2.2 (medical portion to be ignored, as this is substituted by the above letter. This is because the employee will already be in quarantine).
    3. UI 19 (which can be completed through SimplePay) and UI 2.7 (completed by Employer)
    4. UI 2.8 (accompanied by a bank statement, stamped by the bank)
    5. Copy of employee’s ID document.
  2. On SimplePay, when completing the employee’s End Service, please use UIF code 10 – Illness leave.
  3. Once completed, these forms need to be submitted to lodge the claim. An application can be lodged in one of the following ways:
    1. Online at www.ufiling.co.za 
    2. Email or fax the nearest UIF processing centre. (information found on page 7 of this link). If an employer wishes to do this on behalf of their employee, provided they have all the necessary information, this is possible by emailing the relevant processing centre with the required documents. ( n.b. Form UI2.8 could prove difficult for the employer to obtain now that lockdown is in force).
  4. To ensure the employee can claim, alongside the other documents they must ensure they have:
    • A copy of 13-digit bar-coded identity document
    • A copy of your last six payslips
    • A service certificate from the employer
    • A fully completed registration form

Unlike temporary closure, there is no bespoke assistance for the filing of this application. It is likely though that there are fewer employees that qualify for this benefit, lessening the administrative load. If you do experience any difficulties, we would encourage you to touch base with your nearest UIF processing centre for guidance.

At the end of the 14 day period a UI3 form needs to be completed, for the payment to be executed into the employee’s bank account. This should either be done on the ufiling website, or by emailing or faxing your closest UIF Processing centre, as listed in the aid guide. If the employee remains ill beyond the 14 day period, they must obtain a medical certificate from a medical practitioner and submit a further UI3 in order to be able to continue to claim the benefit.

Options for Healthy Employees Impacted by a Permanent Closure  of Business

Unfortunately, in some cases the strains on your business may be too great, resulting in your company ceasing to operate permanently. If this is true for yourself, you should use code 14, denoting permanent closures, i.e use this code if, upon the completion of the 21-day lockdown, the employee shall not continue their employment. Same as for the temporary closure process above, you must end the employee’s service on SimplePay in order for the employee to be able to claim UIF.

In this scenario, the normal process for claiming UIF will likely need to be followed. Therefore, the 3 months extended period of UIF benefit will probably not be applicable.

Procedure for Claiming under COIDA

There are a few key components to being able to claim under this system. The following are required elements:

  • The employee must test positive for the COVID-19 virus (as defined in COIDA).
  • The contraction of the virus must arise out of and happen in the course of employment.
  • There must be a realistic and logical explanation for the exposure to COVID-19, which occurred in the course of employment.

If the above statements apply to an employee, they could be entitled to claim under COIDA. More detail on the requirements can be found here

WATCH THIS SPACE: Temporary Employer Relief Scheme (TERS) and other Relief Measures for Employers

In an effort to avoid retrenchment, the Government is also in consultation to pay wages of employees in struggling companies through the Temporary Employer-Employee Relief Scheme. To gain an insight into the sheme, the process required to participate and to see some templates of the required forms, please send an email to “[email protected]”. You will receive an automated response with all this information. We will also be providing more information on this and other relief measures in our next blog post next week.

As always, we’re here to help where we can. Please feel free to get in touch if you need help with any of the above on SimplePay.

Team SimplePay

Should you have any queries over the content or processes to follow within this blog, please contact our support team via [email protected]


National Minimum Wage Increase

The national minimum wage rates, as specified in the National Minimum Wage Act, will increase by 3.8% from R20 per hour to R20,76 for employees. This minimum wage increase will be effective from 1 March 2020.

This means that the hourly rate will need to be changed for employees who are currently earning a wage lower than R20,76 per hour. To review or edit the hourly rate for employees, go to Employees > Bulk Actions > Regular Inputs and select “Basic Salary” and “Hourly Paid” under Filters.

This increase in the hourly rate will also mean an increase in the leave pay for hourly-paid workers as they will be paid extra when paid leave is taken. More information on leave pay can be found on our help site here.

Remember that a change in the ordinary hourly wage will also impact the rate for Sunday pay and public holiday pay. For more information on these, refer to our help page here.

Specific groups of workers will also have an increase in their national minimum wage of 3.8%, as shown below:

  • Farm workers: R18,68 per hour
  • Domestic workers: R15,57 per hour
  • Public works program: R11,42 per hour

Additionally, certain sectors are also covered by the rates contained in the Schedules to this Gazette

Learnership Allowances

The learnership allowances per week for learners specified in Schedule 2 of the National Minimum Wage Act have also increased and come into effect on 1 March 2020. Please refer to page 2 of the Government Gazette linked above for the allowances.

If you have any further queries regarding the impact of this Act on your payroll and on the system, please do not hesitate to contact us.

Team SimplePay

Parental, Adoption and Commissioning Parental Leave

South Africa’s new parental, adoption and commissioning parental leave have officially been signed into law effective 1 January 2020. These new leave types, considered by many as a historic victory for parents, children and families, cater for new parents who do not qualify for maternity leave. This includes fathers, adopting parents and those undergoing surrogacy.

Parental Leave

New parents, other than the mothers giving birth, are entitled to 10 consecutive days of unpaid parental leave once per year when their children are born. If they are a contributor to UIF, they will also have a right to claim for parental leave. They will no longer be allowed to take Family Responsibility Leave for the birth of a child.

Adoption Leave

Adoption leave applies to those adopting a child under the age of two. One parent will be entitled to 10 consecutive weeks of unpaid Adoption Leave, while the other parent will be entitled to Parental Leave (as discussed above).

Commissioning Parental Leave

This leave applies to parents using a surrogate. The primary caregiver will qualify for 10 consecutive weeks’ of unpaid Commissioning Parental Leave, while the other parent will be entitled to Parental Leave (as discussed above).

There are currently no UIF benefits for Adoption and Commissioning Parental leave. These will only come into effect 1 April 2020.

Capturing on SimplePay

To capture this correctly on SimplePay, terminate the employee by ending their service on the system and use an appropriate UIF Code. The following UIF codes have been added for these new leave types:

  • UIF Code 18: Commissioning Parental
  • UIF Code 19: Parental Leave

For additional information and assistance, consult the following help pages:

Team SimplePay