How does SimplePay calculate Cost to Company figures?
Cost to Company is a new feature; please feel free to provide feedback by clicking on the NEW label.
Since there are no regulations regarding what should be included in Cost to Company (CTC) figures, SimplePay gives you the freedom to decide for yourself. These CTC figures can be displayed as part of the Transaction History Report (THR) and/or on employees' payslips.
Information in the THR
This report is based on the information from finalised payslips. Therefore, ensure that you have finalised all the relevant payslips before generating the report.
If you do not want to use SimplePay's default selection of payroll items (see below), you can change the configuration. More information is available here:
SimplePay's Default Selection¶
SimplePay's default CTC configuration includes all income, allowance, and employer contribution system items, as well as all benefit system items that have an effect on accounting (i.e. all benefit items that are included in the accounting report of a pay run). However, please note that the following payslip items are excluded:
- Company Car Benefit*
- Termination Lump Sums (gratuities / severance benefits)
- Medical Aid Benefit Paid Out
- Retirement Annuity Benefit Paid Out
- Employer Loan – Balance Increase
- Savings Payout
*Since the company car benefit is not included in the accounting report, it is not included in SimplePay’s default CTC, nor can it be added following the steps above.
Custom Items Based on System Items¶
If a custom item is based on a system item, it is not currently possible to include such custom item in the CTC figure.
Items Added via Take-On Balances¶
Amounts for the following items can be added on the Take-On Balances screen. However, since such take-on balances are not included in finalised payslips, they will not appear in the THR and, therefore, not be included in the CTC figure in the THR (nor in the CTC figure on payslips).
- 3601 – Income (Subject to PAYE)
- 3602 – Income (Non-taxable)
- 3605 – Annual payment (Subject to PAYE)
- 3713 – Other allowances (Subject to PAYE)
- 3714 – Other allowances (Non-taxable)