Customise System Items

SimplePay is all about you, our users. So when you asked for more power to customise the system to suit your payroll needs, we listened. We’re delighted to announce our latest feature – the ability to create custom items that follow the same tax and payroll rules as system items.

This new feature allows you to:

  • Create multiple items of a certain type:
    • Commission
    • Once-off Commission
    • Employer Loans
    • Garnishees
    • Maintenance Orders
    • Savings
  • Customise the names of these items. For example, you may want to differentiate between different types of commissions.
  • Map different versions of a specific type of item to different Xero accounts. For example, you may want to give an annual bonus to two different employees but you want one of them to be mapped to an account in Xero called “Director’s Costs” and the other to an account in Xero called “Employee Costs”. You can add the bonus to the payslips as two different items.

How does it work?

When creating a custom item (Settings > Custom Items > Add), there is now an option to select create a copy of an existing system item. Select the system item that you wish to use and give it a custom name. You can then add it to your payslips in the same way you would the system item of that type (Regular Inputs or Payslip Inputs).

Read our help page here for more information on creating custom items.

August 2017 Employer Interim Reconciliation Filing Season

The August 2017 Employer Interim Reconciliation filing season is now open and you have until 31 October 2017 to submit your Employer Reconciliation Declarations (EMP501s) for the period from 1 March 2017 to 31 August 2017, in respect of the Monthly Employer Declarations (EMP201s) submitted, payments made, Employee Income Tax Certificates [IRP5s / IT3(a)s] and ETI, if applicable.

You can refer to the SARS website for news about this.

Remember that we have a help page about the bi-annual filing process, as well as a guide – to take you through it step by step.

Please pay particular attention to the checklist in the guide, which will help you eliminate unnecessary validation errors when trying to upload files to [email protected]

An updated version of [email protected] is already available, and it is very important that you use the latest version: 6.8.1. Please remember to make a backup of your current information on your computer before installing a new version of [email protected]

We are happy to inform you that we have already made all the necessary updates to the system that were required because of the changes SARS made for this filing season. You will now, once again, be able to generate an export file of your tax certificates on the Submissions tab and upload this file onto [email protected]

One notable change introduced by SARS is the increased reporting requirements for ETI, which include new and amended ETI source codes. Another consequence of the requirement for increased reporting on ETI is a slight change in the way tax take-on balances are captured – and some action might be required on your side.

When you do the pre-validation on our system (as described in the guide linked to above), you might get some IRP5 code errors – especially if you started using SimplePay after 1 March 2017 and if you already had employees who had qualified for ETI when you entered take-on balances.

Many of these IRP5 code errors should be resolved when you enter the additional ETI take-on information that SARS now requires. This should be done individually for all employees mentioned in the IRP5 code errors as follows:

  1. Go to the employee’s profile.
  2. Click on Take-On Balances under Actions on the right.
  3. Click on Edit Balances.
  4. Enter the monthly ETI Wage and ETI Hours information for the same months for which you had previously entered ETI Claimed and Remuneration information.
    • More information about ETI Wage is available here. Please note the distinction between remuneration and wage.
    • More information about ETI Hours is available here.
  5. Re-do the pre-validation and check that the IRP5 code errors related to ETI take-on information have been resolved.

As always, please feel free to contact us at [email protected] if you have any questions or need assistance in resolving the IRP5 code errors.

The SimplePay Team

2017 Employer Annual Reconciliation Filing Season

SARS has announced the dates of the 2017 Employer Annual Reconciliation filing season. This year it will run from 18 April to 31 May 2017.

Please note that this is slightly different from other years, where the filing season started on 1 April.

You will have until 31 May 2017 to submit your Annual Reconciliation Declarations (EMP501s) for the period 1 March 2016 to 28 February 2017, in respect of the Monthly Employer Declarations (EMP201s) submitted, payments made, Employee Income Tax Certificates [IRP5s / IT3(a)s] and ETI, if applicable.

An updated version of [email protected] should be available from 18 April 2017, so it is not advisable to attempt to do your filing before then. Please remember to backup your current information on your computer before installing a new version of [email protected]

Remember that we have a help page about this bi-annual filing process, as well as a guide – to take you through it step by step.

Please pay particular attention to the checklist in the guide, which will help you eliminate unnecessary validation errors when trying to upload files to [email protected]

You can also refer to the SARS website for news about this.

As always, please feel free to contact us at [email protected] if you have any questions.

The SimplePay Team

2016 Payroll Changes – Additional Medical Tax Credit

With the start of the new financial year looming ahead of us, lawmakers have been hard at work drafting legislative changes that will require Payroll administrators to keep their wits about them if they want to keep up.

To make your life easier, we make it our business to keep abreast of any and all changes that could effect how you process your payroll. In the coming weeks, we will be posting some of the most interesting changes that you should be taking note of, so be sure to check back regularly.

One of the most significant changes taking place in the upcoming financial year, is the introduction of the Additional Medical Tax Credit (AMTC).

This credit serves to give tax relief to employees who are over the age of 65, in the form of an increased Medical Tax Credit for each month.

As of 1st March 2016, employees aged 65 and up will be eligible to receive an additional reduction to the monthly amount of PAYE withheld to the value of 33.3% of the excess total contribution paid to the medical scheme that exceeds three times the regular Medical Tax Credit value. This Additional Medical Tax Credit will be reported separately from the Medical Tax Credit on the tax certificate.

For example:

An employee makes a monthly contribution of R1500 to his medical aid and has no dependents. The Medical Tax Credit in this case would be R270.

To calculate the Additional Medical Tax Credit, we first need to determine difference between 3 x R270 and the contribution. In this case the calculation would be as follows:

R270 x 3 = R810

R1500 – R810 = R690

R690 x 33.3% = R229.77 Additional Medical Tax Credit

This employee would then receive a total tax credit tax credit to the value of:

R270 (Medical Tax Credit)
+ R229.77 (Additional Tax Credit)
= R499.77 (Total Medical Tax Credit)

You’ll be glad to know, that our development team has been hard at work in order to ensure that this feature will be ready to go from the first of of March, with absolutely no additional input required from your side.

As always, if you have any comments or concerns, feel free to get hold of us in the comments or through our super helpful support team 🙂

Updates in SimplePay for the 2015/2016 Tax Year

We are pleased to announce that SimplePay clients are once again some of the first to be informed of the relevant changes for the new tax year.   As from 01 March 2015, your payroll will automatically meet all the requirements for the 2015/2016 period, as announced in the 2015 Budget Speech on 25 February 2015.

Here are some of the most important changes that you will see in your payroll for the coming year:

As expected, that tax tables have changed with inflation, with tax rates increasing by 1 percentage point for individuals earning R181 901 and above.

  • 2015/2016 Tax Rates:
Taxable Income (R) Rate of Tax (R)
0 – 181 900 18% of taxable income
181 901 – 284 100 32 742 + 26% of taxable income above 181 900
284 101 – 393 200 59 314 + 31% of taxable income above 284 100
393 201 – 550 100 93 135 + 36% of taxable income above 393 200
550 101 – 701 300 149 619 + 39% of taxable income above 550 100
701 301 and above 208 587 + 41% of taxable income above 701 300

The primary rebate has increased from R12 726 to R13 257.

The tax threshold has also increased from R70 700 to R73 650

The medical aid tax credit has increased as follows:

  • The tax credit for the main member plus first dependent has increased from R257.00 to R270.00 per month.
  • For every additional dependent, the tax credit has increased from R172.00 to R181.00 per month.

The ‘tax free’ portion for subsistence allowance** has increased as follows:

  • The allowance for incidental costs within South Africa has changed from R103.00 to R109.00.
  • The allowance for meals and incidental costs within South Africa has changed from R335.00 to R353.00.

**It is important to note that the subsistence allowance is only a guideline provided by SARS and is not legislated.

If you have any questions relating to the above changes, you are welcome to contact SimplePay support to assist you with these queries.

The SimplePay Team

Changes in SimplePay for the 2014/2015 tax year

We are pleased to announce that all SimplePay clients can now see what the changes are that have been made to SimplePay for the 2014/2015 financial year.  As from 01 March 2014, your payroll will automatically meet all the legislative requirements, as announced by Pravin Gordhan, the Finance Minister in South Africa.

Here are some of the most important changes that you will see in your new payroll:

– As expected, that tax tables have changed with inflation, and below you will see the tax table for the year ending 28 February 2015:

Taxable Income (R) Rate of Tax (R)
0-174 550 18% of taxable income
174 551 – 272 700 31 419 + 25% of taxable income above 174 550
272 701 – 377 450 55 957 + 30% of taxable income above 272 700
377 451 – 528 000 87 382 + 35% of taxable income above 377 450
528 001 – 673 100 140 074 + 38% of taxable income above 528 000
673 101 and above 195 212 + 40% of taxable income above 673 100

 

– The tax threshold has changed from R67 111-00 to R70 700-00.

– The medical aid tax credit has increased as follows:
* The tax credit for the main member plus first dependent has increased from R242-00 to R257-00 per month.
* For every additional dependent, the tax credit has increased from R162-00 to R172-00 per month.
It is important to note that employees 65 years and older will now also receive a tax credit on their medical aid. The medical tax credits amounts for employees who are 65 or older will be exactly the same as the tax credits for employees who are younger than 65.

– The ‘tax free’ portion for subsistence allowance has increased as follows:
* The allowance for incidental costs within South Africa has changed from R98-00 to R103-00.
* The allowance for meals and incidental costs within South Africa has changed from R319-00 to R335-00.
It is important to note that the subsistence allowance is only a guideline as provided by SARS, and is not enforced as per legislation.

– The OID limit has increased to R312 480-00 for the 2013/2014 year, and the 2014/2015 OID limit has been increased to R332 479-00.

If you have any questions to the changes that were made in legislation, you are welcome to contact SimplePay support to assist you with these queries.

The SimplePay Team

UIF Limit Increased

From 1 Oct. 20012, the annual limit for income subject to UIF contributions has increased from R149,736 to R178,464. That results in a new monthly limit of R14,872 and a weekly limit of R3,432.

Employees who have always earned less than the old limit (monthly R12,478), will not see any difference, they will still have the 1% deduction + 1% company contribution. However, those earnings more than the limit will see theirs increase from R124.78 per month to as much as R148.72 per month.

Tax tables and other info loaded for the 2011/2012 tax year

We’re pleased to announce that our clients and their employees can now see how their payroll will change in the new tax year. Payslips that fall in the 2012 / 2013 tax year will automatically meet the new legal requirements, while your payslips for the current tax year will still be calculated according to the current tax year’s rules, as you’d expect.

Here are the changes:

  • The biggest change: Medical Aid Tax Credits implemented. This replaces the old medical aid taxable income deductions.
    • R 230 per person for the employee and the first dependent.
    • R 154 per person for each additional dependent.
  • Tax free portion of subsistence allowance was increased:
    • R 303 per day for meals and incidental costs (was R 286).
    • R 93 per day for incidental costs only (was R 88).
  • New tax tables, with the usual slight tax relief.