TERS is a COVID-19 relief measure introduced by government which provides employers with cashflow to continue to pay employees. You can find a more in-depth recap on TERS on our blog here.
Adding the TERS payment to a payslip
The employer acts as the conduit for these payments and therefore the payments should not attract PAYE, UIF or SDL. They are also not reported on IRP5s / IT3(a)s. To save you time and to minimise any potential stress associated with setting the payslip item up incorrectly, we have created a system item for these payments.
To add the system item to an individual employee’s payslip:
- Go to the employee’s profile
- Click on Add next to Payslip Inputs
- Select TERS Payout under Other
- Enter the amount that needs to be paid to the employee
- Click Save
To bulk add the system item to the payslips of employees:
- Go to Employees > Bulk Actions > Payslip Inputs
- Use the filters to select the relevant pay frequency, payslip date and pay point
- Then use the filters to select TERS Payout under Other
- Click on the checkbox next to an employee’s name to add the item to their payslip*
- Enter the amount for each employee*
- Then click Save under the filters to save your changes.
*Remember, you can click on the dropdown arrow next to the heading and then select Copy first value down to apply the first employee’s entry to all employees in a faster manner.
Additional payments by employers (top ups)
Employers may not make additional payments to employees after receiving their TERS benefit payouts.
When submitting the TERS application, employers are expected to complete the Leave income during shutdown field with the amount anticipated to be paid to each employee by the company, over and above the TERS payout. This is taken into consideration in calculating the payout per employee – employers who are able to pay their employees a portion of usual income should do so and will then likely get lower payouts than those employers with zero cash flow.
Failing to accurately declare these amounts and / or subsequently paying additional amounts to employees, could result in employers / employees receiving an “overpayment” from TERS, which in turn amounts to fraud. This opens employers up to potential penalties and legal action.
The South African Institute for Chartered Accountants (SAICA) has released a very helpful publication which provides additional information and clarity on the above.