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How does SimplePay calculate the Cost to Company in the Transaction History Report?

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 a Cost to Company (CTC) figure, SimplePay gives you the freedom to decide for yourself. This CTC figure can be displayed as part of the Transaction History Report (THR).

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.

To set up the configuration of the CTC figure in the THR:

  1. Go to Settings > Payroll Calculations > Cost to Company.

  2. Select all the income, allowance, benefit, and employer contribution items – system and custom – that you want to include.

    Selecting items

    By default, a number of items will already be checked, i.e. the ones that form part of SimplePay's recommended calculation (see below). Instead of unchecking the ones you don't want to include, you have the option to click None, and then checking only the ones that you want to include.

  3. When you are happy with your selection of items, click Save.

Reset to default

If you click the Reset to default button, you will see a message informing you of the implications, i.e. "Resetting will remove all customisations your users have made to the Cost to Company configuration. The configuration will revert to SimplePay's default selection of System Items."

Click Confirm if you want to return to the default selection of system items, and then Save.

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.

  • 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)