release notes 48a - sage south africamailers.sagesouthafrica.co.za/.../releasenotes48a.pdf · 3.1...

Release Notes 4.8a

Premier and Classic March 2017

Release Notes 4.8a of 81

1.0 RSA: Employee Tax Incentive - Explanation of

Amendments and Calculations 5

1.1 Wage Qualifying Test 5

1.1.1 Summary of the legislation for the wage qualifying

test from March 2017: 6

1.1.2 ‘Employed and Remunerated’ Hours 7

1.1.3 Actual Wage 8

1.2 Remuneration 12

1.2.1 Application of ‘employed and remunerated’ hours in

terms of remuneration 13

1.3 Calculation of the ETI Amount 15

1.4 Roll-Over and Reimbursement 17

2.0 RSA: Employment Tax Incentive (ETI)

Amendments in the System (Classic/Premier) 18

2.1 Important Notice 18

2.2 ETI Setup 18

2.2.1 Guidelines 19

2.2.2 ETI Company Setup 19

2.2.3 Check Employee Wage Regulating Measure 23

2.3 Employee Tax Incentive Tab 23

2.3.1 ETI Engagement Date 24

2.3.2 Wage Regulating Measure 25

2.3.3 Employed and Remunerated Hours (Rem) 25

2.3.4 Employed and Remunerated Hours (Wage) 25

2.3.5 ‘Number of days worked in this Month’ Message 26

2.4 Employee ETI History Screen 27

2.4.1 Summary Tab 27

2.4.2 Detail Tab 27

2.5 Global Activation of Wage Regulating Measure 30

2.6 ETI Employed and Remunerated Hours Import 30

2.6.1 Import 30

2.6.2 Export 31

2.7 ETI History Export 33

2.7.1 Export 33

2.7.2 Import 35

2.8 ETI Validation Report (Real Number 767) 35

2.8.1 Checklist Control 36

3.0 RSA: Statutory Changes (Classic/Premier) 37

3.1 Tax Table Changes 2017-2018 37

3.2 Other Tax Changes Affecting Payroll 38

3.2.1 Directors’ Deemed Remuneration 38

3.2.2 Retirement Funding Income (RFI) Definition 38

3.3 Other Tax Changes Not Affecting Payroll 39

3.3.1 Subsistence Allowances and Advances 39

3.3.2 Table for Calculation of Rate per km\Travel

Allowance 40

3.3.3 Remuneration Proxy 40

Table of Contents


3.3.4 Employer Provided Bursaries 41

3.3.5 Reimbursive Travel Allowance 41

3.3.6 Certain Dividends Included in Remuneration 42

3.3.7 Value of ‘B’ in the Residential Accommodation Fringe

Benefit Calculation 42

4.0 Africa: Ghana – Change to SSNIT Tier 1 (Premier) 43

5.0 Africa: Kenya Tax Tables (Premier) 44

6.0 Africa: Nigeria Social Insurance Trust Fund

(Premier) 45

6.1 Payroll Changes 46

6.1.1 Add Regular Earnings to the Calculation of NSITF 46

6.1.2 Amend Report Setup 46

7.0 Africa: Zambia Statutory Changes (Premier) 47

7.1 Skills Development Levy 47

7.2 NAPSA Ceiling Increase 48

7.3 New PAYE Tax Tables 48

8.0 Budget Module- mSCOA (Premier) 49

8.1 Increase of Budget Information per Job 49

8.2 Global Budget Increase 50

9.0 Income Verification (Classic/Premier) 53

9.1 How it Works 53

9.2 Benefits to Employer and Employee? 53

9.3 Income Verification Setup Process 53

9.4 Access Control 55

9.5 Uploading of Payslips 55

10.0 Work Address Code (Classic/Premier) 56

10.1 Work Address System Description Code 56

10.1.1 Conversion 56

10.1.2 Adding Work Address Codes 57

10.2 Employee Address Details Tab 57

11.0 Reporting: Swaziland - Country Specific Reports

(Classic/Premier) 58

11.1 Reports Menu 58

11.2 Reports in Excel 61

11.3 Audit Log File 61

11.4 Windows Regional Settings 62

11.5 Swaziland Reports 63

11.5.1 SNPF Report – Electronic NPF200 Form 63

11.5.2 PAYE Monthly Declaration Return 64

11.5.3 PAYE 16 Reconciliation of Tax Deductions Made and

of Stock of Certificates on Hand 65

11.5.4 PAYE 15 Annual Return of Salaries 67


11.5.5 PAYE 05 Employee Tax Certificate 68

11.5.6 IRP5 Electronic Submission File 69

12.0 Reporting: Africa – New and Changed Reports

(Premier) 71

12.1 Tanzania Form LAPF 10 Report 71

12.2 Other Report Changes (Premier / Classic in some

instances) 71

13.0 Reporting: RSA - UIF Submission Report (Real

Number 651) (Classic/Premier) 73

14.0 Reports and Report Writer Codes


14.1 Instructions to Import Reports 74

14.1.1 Batch Imports 74

14.1.2 Export/Import Reports Option 74

14.2 New Standard Reports 75

14.2.1 RSA Users (Classic/Premier) 75

14.3 Changed Standard Reports (Classic/Premier) 75

14.3.1 All Users (Classic/Premier) 75

14.4 RG Codes 76

14.4.1 All Users (Classic/Premier) 76

15.0 Support Lifeline (Classic/Premier) 77

16.0 Items Resolved / Requests Implented


17.0 Items Included from Previous System

Enhancements (Classic/Premier) 81


The Taxation Laws Amendment Act, 2016, promulgated on 19 January 2017 in Government

Gazette 40562, extends ETI for another 2 years, ending on 28 February 2019. The Act also

contains a number of changes that we have made provision for in the Payroll System.

You will find an explanation of the ETI amendments and calculations and the changes made

to ETI in the Taxation Laws Amendment Act in this section, followed by the changes we have

made to the system to accommodate these changes in the next section.

1.1 Wage Qualifying Test

In order for an employee to qualify for ETI, he/she must pass the wage qualifying test. This is

one of the qualifying criteria to establish if an employee is a qualifying employee. Other

qualifying criteria includes; employed on or after 1 October 2013, 18 to 29 years old, valid

RSA ID / Asylum Seeker Permit / Refugee ID Number, not a domestic worker, not a

connected person to the employer and monthly remuneration must be less than R6 000.

‘Wage’ refers to the cash amount paid for ordinary hours of work. This is typically basic

salary or basic wage of the employee, excludes elements such as overtime, commission,

bonus etc., and includes any leave pay (such as pay for annual leave, sick leave, family

leave etc.). The ‘wage’ the employee earns should be at least the minimum wage according

to the wage regulating measure (collective agreement, bargaining council or sectoral

determination) or R2 000 for a full month, which is at least 160 hours, if there is no wage

regulating measure.

Before March 2017

If a wage regulating measure was applicable, then the monthly wage was compared to

the minimum monthly wage (it was understood that a rate per hour comparison was

allowed as this was effectively the same as grossing-up the wage).

If no wage regulating measure was applicable the monthly wage was calculated in the

following way:

– If the employee was employed for less than 160 hours per month, then a gross-up of

the wage was performed to see how much the wage would have been for 160 hours.

– If the employee was employed for 160 hours or more, no gross-up of the wage was

required.

Hours employed referred to:

Contractual normal hours (no overtime hours), in the case of a ‘permanent’ employee for

ETI purposes (those employees who work in terms of an employment contract that

specifies a contractual predictability of regular work in the future. In other words, an

employee with a standard amount of hours to work in a month.

Actual total hours worked in the case of a ‘temporary’ employee for ETI purposes

(employee without a standard amount of hours to work in a month or an employee who

works an irregular amount of hours, such as temps or casual workers).

Actual normal hours employed for new and terminated employees.

1.0 RSA: Employee Tax Incentive - Explanation of

Amendments and Calculations


Please Note: The definitions for ‘permanent’ and for ‘temporary’ are not legal terms, but

our own definitions we used to explain the legislation.

To simplify the calculation, from March 2015 the test was not based on the wage rate per

month, but by applying a rate per hour comparison:

The minimum wage rate per hour applied if there was a wage regulating measure, or

If there was no wage regulating measure, an employee qualified if the wage rate per hour

of the employee was equal to or more than R12.50 (R2 000/160 hours).

From March 2017

The legislation was amended to change the word from ‘employed’ to ‘employed and paid

remuneration’ in order to clarify the applicable hours worked in the grossing up/grossing

down calculation.

The term ‘employed’ has a different meaning to ‘employed and paid remuneration’ and

therefore some of the calculations are changing.

1.1.1 Summary of the legislation for the wage qualifying test from March 2017:

If a wage regulating measure is applicable:

The wage paid should be compared to the minimum wage of the wage regulating

measure in respect of that month, it is understood that a rate per hour comparison is

allowed as this is effectively the same as grossing-up the wage.

If no wage regulating measure is applicable:

If an employee is ‘employed and paid remuneration’ for less than 160 hours in a month,

then gross-up the wage to 160 hours to determine if the monthly wage is R2 000 or more.

If an employee is ‘employed and paid remuneration’ for at least 160 hours in a month, no

gross-up of the wage is required to determine whether the monthly wage is R2 000 or

more.

The amended legislation allows for a rate per hour/week/month comparison for employees

with a wage regulating measure. However, the amended legislation does not provide for a

gross-up calculation if a wage regulating measure is applicable. Therefore, our system will

still perform a rate per hour comparison for employees with a wage regulating measure to

apply the wage qualifying test.

The wording of the legislation in respect of employees without a wage regulating measure

has changed to indicate that a gross-up calculation should be done based on all hours

‘employed and remunerated’. Therefore, we will not be performing a rate per hour

comparison on employees without a wage regulating measure. The wage qualifying test

must be applied strictly on a monthly basis (R2000 for a full month, which is at least 160

‘employed and remunerated’ hours).


From March 2017

The following wage qualifying tests will be applied:

Wage regulating measure (no change)

Check if contractual/actual wage rate per hour of the employee is equal or more than the

minimum wage rate per hour (according to the wage regulating measure) of the employee.

No wage regulating measure

If ‘employed and remunerated’ hours are less than 160 hours a gross-up calculation will be

done using the actual monthly wage to apply the wage qualifying test.

Actual monthly wage / ‘employed and remunerated’ hours x 160

If the ‘employed and remunerated’ hours are 160 or more the actual monthly wage will be

used to apply the wage qualifying test.

If the actual monthly wage or grossed-up monthly wage for a full month (at least 160 hours)

is R2000 or more, the employee will pass the wage qualifying test.

If the actual monthly wage / grossed-up monthly wage for a full month (at least 160 hours) is

less than R2000, the employee will fail the wage qualifying test and no ETI will calculate.

In order to apply this test, the system must know the following:

‘Employed and remunerated’ hours

Actual wage for the month

1.1.2 ‘Employed and Remunerated’ Hours

‘Employed and remunerated’ hours are all actual hours the employee was ‘employed and

remunerated’ for. In other words, it should be the ordinary hours less any unpaid hours (such

as unpaid leave hours, no work-no pay hours, strikes etc.) plus any additional hours (such as

overtime hours, public holiday worked hours, hours worked on a Sunday etc.).

Before March 2017 we distinguished between permanent employees (employees with a

standard amount of hours to work in a month) and temporary employees (employees without

a standard amount of hours to work in a month or employees who work an irregular amount

of hours) in order to apply the ‘employed’ hours. We used the ‘employed’ hours to determine

whether a gross-up of the wage should have been done.

For explanatory purposes we will still distinguish between permanent, temporary, new and

terminated employees.

Permanent employees – contractual/ordinary hours (average working hours per month

according to the BCEA, calculated on a 4.3333 week or according to the employment

contract) less any unpaid hours (such as unpaid leave hours, no work-no pay hours) plus

any additional hours (such as overtime hours, public holiday worked hours, hours worked

on a Sunday etc.).


Temporary employees – actual number of hours worked in the month (the calculation of

hours will include ordinary hours plus additional hours of work, unpaid hours will

automatically not be counted).

New and terminated employees – actual number of hours worked if employed after the

first day of the month or terminated before the last day of the month (the calculation of

hours will include ordinary hours plus additional hours less unpaid hours).

Please Note: It is our opinion that ordinary/contractual (average working hours per month)

less unpaid hours plus additional hours can be used for permanent employees as this

refers to the number of hours ‘employed and remunerated’ during the month.

Example 1 – permanent monthly paid employee:

The employment contract states that the employee’s ordinary hours of work is 8 hours a day,

5 days a week (Monday to Friday) which is 173.3333 average working hours per month (in

line with the BCEA).

In the month of April, the employee took 30 hours unpaid leave (unpaid hours) and worked 3

hours overtime (additional hours).

‘Employed and remunerated’ hours for the month:

Contractual/ordinary hours – unpaid hours + additional hours

= 173.3333 – 30 + 3

= 146.3333 hours

Example 2 – permanent weekly paid employee:


5 days a week (Monday to Friday) which is 40 hours per week.

The month of April has 4 weeks in the month.

In the month of April, the employee took 30 hours unpaid leave (unpaid hours) and worked 3

hours overtime (additional hours).

‘Employed and remuneration’ hours for the month:


= (40 x 4) – 30 + 3

= 133 hours

1.1.3 Actual Wage

According to the Basic Conditions of Employment Act, actual wage will include the basic

wage or salary (excluding fringe benefits and company contributions) paid to the employee

for the month and excludes elements such as overtime, commission, bonus etc. Actual wage

includes leave pay (such as annual leave, sick leave, family leave etc.). It is important that

earning lines/components which form part of the employee’s wage are separate from other

earnings on the payroll.


Diagram to Illustrate the Wage Qualifying Test for Employees Without a Wage

Regulating Measure

*Hours refer to ‘employed and remunerated’ hours.


*Hours less than 160

Gross-up calculation:

Actual monthly wage / *hours x 160

Grossed-up wage is R2000 or more

Employee passes the wage qualifying test

Grossed-up wage is less than R2000

Employee fails the wage qualifying test, no ETI is calculated

*Hours are 160 or more

Actual monthly wage

Actual wage is R2000 or more

Employee passes the wage qualifying test

Actual wage is less than R2000

Employee fails the wage qualifying test, no ETI is calculated


Wage Qualifying Test: Wage Regulating Measure vs. No Wage Regulating Measure

Please Note: It is the user’s responsibility to process the correct ‘employed and

remunerated’ hours in order to correctly calculate and claim ETI.

From March 2017, the wage qualifying test remains the same for employees with a wage

regulating measure (rate per hour comparison – actual ‘wage’ rate per hour must be equal

to or more than the minimum wage rate per hour according to the wage regulating

measure). The wage qualifying test is only changing for employees without a wage

regulating measure.

Example 1 – permanent monthly paid employee with no wage regulating measure




Employee A was appointed on 1 April 2017. Employee A meets all other qualifying criteria in

terms of ETI. In the month of April employee A took 30 hours unpaid leave (unpaid hours)

and worked 3 hours overtime (additional hours).

Wage qualifying test

Wage regulating measure

The actual wage rate per hour must be equal to or more than the minimum wage rate per

hour specified according to the wage regulating measure for the employee to pass

the wage qualifying test.


Indicate/establish if the 'employed and remunerated' hours are less than 160. If the hours are 160 or more, actual monthly wage will be used. If the hours are less than 160, a gross-up calculation will be done on actual

monthly wage.

If the monthly actual / grossed-up wage is R2000 or more, the employee will pass the wage qualifying

test.


Payslip:

Earnings Amount

Salary R2 100.00

Overtime R 560 .00

Unpaid Leave R 220.00

Commission R1 800.00

Total R4 240.00

Wage qualifying test: Receives at least R2000 wage for a full month (160 hours).

‘Employed and remunerated’ hours:


= 173.3333 – 30 + 3

= 146.3333 hours

Monthly wage for 160 hours:

Actual wage / ‘employed and remunerated’ hours x 160

= (Salary – unpaid leave) / 146.3333 x 160

= R2 100 – R220.00 / 146.3333 x 160

= R2056.00

Pass wage qualifying test as the wage for a full month is equal to or more than R2 000.

Example 2 – permanent weekly paid employee with a wage regulating measure

The collective agreement states that the employee should be paid a minimum rate of R22.50

and that his ordinary hours of work is 45 hours a week. April has 5 weeks in the month.


terms of ETI. In the month of April employee A took 18 hours unpaid leave and worked 8

overtime hours (additional hours).

The employer pays the employee R23.50 per hour.


Payslip:

Earnings Amount

Wage R4 230.00

Overtime R 282 .00

Unpaid Leave R 432.00

Sick Leave R 634.00

Total R4 714.00

Wage qualifying test:

Actual rate per hour equal to or more than the minimum rate per hour according to the wage

regulating measure.

=R23.50 is more than R22.50

Pass wage qualifying test as employee A’s actual rate per hour is equal to or more than the

minimum rate per hour according to the wage regulating measure.

1.2 Remuneration

Monthly remuneration (taxable earnings, taxable perks and taxable company contributions) is

used to calculate the employment tax incentive amount.

Before March 2017

A gross-up of remuneration was performed if the employee was employed for less than 160

hours a month. In other words, if the person was employed for less than 160 hours then a

‘gross-up’ of remuneration was done to calculate what the person would have earned for a

full month (a full month is seen as 160 hours). A full month’s remuneration was used to

calculate the ETI value.

Gross-up calculation: Remuneration earned / hours employed x 160.

Hours employed referred to:

Contractual normal hours (no overtime hours) in the case of a ‘permanent’ employee for

ETI purposes (those employees who work in terms of an employment contract that

specifies a contractual predictability of regular work in the future. In other words, an

employee with a standard amount of hours to work in a month.).

Actual total hours worked in the case of a ‘temporary’ employee for ETI purposes

(employee without a standard amount of hours to work in a month or an employee who

works an irregular amount of hours, such as temps or casual workers).

Actual normal hours employed for new and terminated employees.

Please Note: The definitions for ‘permanent’ and for ‘temporary’ are not legal terms, but

our own definitions we used to explain the legislation.


From March 2017

A gross-up of remuneration should be performed if the employee is ‘employed and paid

remuneration’ for less than 160 hours a month (for employees with and without wage

regulating measure):

If an employee is ‘employed and paid remuneration’ for 160 hours or more in a month,

then the actual amount of remuneration paid to the employee in a month (no gross-up

calculation) is used.

If an employee is ‘employed and paid remuneration’ for less than 160 hours in a month

the monthly remuneration is calculated as follows:

Remuneration earned in the month / ‘employed and remunerated’ hours x 160.

‘Employed and Remunerated’ Hours

‘Employed and remunerated’ hours are all actual hours the employee was ‘employed and

remunerated’ for. In other words, it should be the ordinary hours less any unpaid hours (such

as unpaid leave hours, no work-no pay hours, strikes etc.) plus any additional hours (such as

overtime hours, public holidays worked hours, hours worked on a Sunday.).

Before March 2017 we distinguished between permanent employees (employees with a

standard amount of hours to work in a month) and temporary employees (employees without

a standard amount of hours to work in a month or employees who work an irregular amount

of hours) in order to apply the ‘employed’ hours. We used the ‘employed’ hours to determine

whether a gross-up of the wage should have been done.

For explanatory purposes we will still distinguish between permanent, temporary, new and

terminated employees.

Permanent employees – contractual/ordinary hours (average working hours per month

according to the BCEA, calculated on a 4.3333 week or according to the employment

contract) less any unpaid hours (such as unpaid leave hours, no work-no pay hours) plus

any additional hours (such as overtime hours, public holiday worked hours, hours worked

on a Sunday.).

Temporary employees – actual number of hours worked in the month (the calculation of

hours will include ordinary hours plus additional hours of work, unpaid hours will

automatically not be counted).

New and terminated employees – actual number of hours worked if employed after the

first day of the month or terminated before the last day of the month (the calculation of

hours will include ordinary hours plus additional hours less unpaid hours).

Please Note: It is our opinion that ordinary/contractual (average working hours per month),

less unpaid hours plus additional hours can be used for permanent employees as this

refers to the number of hours ‘employed and remunerated’ during the month.

1.2.1 Application of ‘employed and remunerated’ hours in terms of remuneration

If the ‘employed and remunerated’ hours are less than 160, the system will do a gross-up

calculation of the remuneration:

Actual remuneration / ‘employed and remunerated’ hours x 160


If the ‘employed and remuneration hours’ are 160 or more, the system will use actual

remuneration.

The actual/grossed-up remuneration for the full month has to be less than R6000 for the

employee to qualify. If the remuneration for the full month is R6000 or more, the

employee will not qualify and no ETI amount will calculate.

Diagram to Illustrate the Calculation of Remuneration for All Employees (With and

Without a Wage Regulating Measure)

*Hours refer to ‘employed and remunerated’ hours.

'Employed and remunerated' hours

*Hours less than 160

Gross-up calculation:

Actual monthly remuneration / *hours

x 160

Grossed-up remuneration is R6000 or more

No ETI amount is calculated

Grossed-up remuneration is less

than R6000

Continue to calculate ETI amount

*Hours are 160 or more

Actual monthly remuneration

Actual remuneration is R6000 or more

No ETI amount is calculated

Actual remuneration is less than R6000

Continue to calculate ETI amount


1.3 Calculation of the ETI Amount

Before March 2017

The ETI amount was grossed-down (pro-rated) if the ‘employed’ hours were less than 160

hours:

Full monthly ETI amount / 160 hours x ‘employed’ hours.

If the ‘employed’ hours were 160 hours or more, the full monthly ETI amount was calculated.

From March 2017

The ETI amount will be grossed-down (pro-rated) if the ‘employed and remunerated’ hours

(previously referred to as ‘employed’ hours) are less than 160 hours:

Full monthly ETI amount / 160 x ‘employed and remunerated’ hours.

If the ‘employed and remunerated’ hours are 160 hours or more the full monthly ETI amount

will calculate.

Example 1 – permanent monthly paid employee with no wage regulating measure





terms of ETI. In the month of April employee A took 30 hours unpaid leave (unpaid hours)

and worked 3 hours overtime (additional hours).

Employee A’s actual wage for April is R1 900.00.

Employee A’s actual remuneration for April is R3 700.00.

‘Employed and remunerated’ hours: Ordinary hours – unpaid hours + additional hours

= 173.3333 – 30 + 3

= 146.3333

Wage qualifying test: Receives at least R2000 wage for a full month (160 hours).

Actual wage / ‘employed and remunerated’ hours x 160

= R1 900.00 / 146.3333 x 160

= R2 076.80

Pass the wage qualifying test as the wage for a full month is equal to or more than R2 000.

Remuneration: Remuneration for the full month (160 hours) less than R6 000.00.

Actual remuneration / ‘employed and remunerated’ hours x 160

= R3 700 / 146.3333 x 160

= R4044.80


Continue to calculate the ETI amount as the remuneration for a full month is less than

R6 000.

Calculation of ETI amount:

= R1 000 – [0.5 x (monthly remuneration – R4 000)] / 160 x 146.3333

= R1 000 – [0.5 x (R4044.80 – R4 000)] / 160 x 146.3333

Pro-rata (gross-down) ETI amount (‘employed and remunerated’ hours less than 160

hours):

ETI amount / 160 x ‘employed and remunerated’ hours

= R977.60 / 160 x 146.3333

=R894.10 >>> Final ETI amount for the month of April.

Example 2 – temporary weekly paid employee with a wage regulating measure

The collective agreement states that the employee should be paid a minimum rate of R22.50


terms of ETI. In the month of April employee A worked 158 ordinary hours and 5 overtime

hours (additional hours).

The employer pays the employee R23.50 per hour.

Employee A’s actual wage for April is R3 713.00.

Employee A’s actual remuneration for April is R4 528.00.

‘Employed and remunerated’ hours: Ordinary hours + additional hours

= 158 + 5

= 163

Wage qualifying test: actual rate per hour equal to or more than the minimum rate per hour

according to the wage regulating measure.

= R23.50 is more than R22.50

Pass wage qualifying test as employee A’s actual rate per hour is equal to or more than the

minimum rate per hour according to the wage regulating measure.

Remuneration: Remuneration for the full month (160 hours) less than R6 000.

= R4 528.00

Continue to calculate the ETI amount as the remuneration for a full month is less than

R6 000.


Calculation of ETI amount

= R1 000 – [0.5 x (monthly remuneration – R4 000)]

= R1 000 – [0.5 x (R4 528 – R4 000)]

= R736.00 >>> Final ETI amount for the month of April, the ETI amount will not be pro-rated (grossed-down) as the ‘employed and remunerated’ hours are 160 or more.

1.4 Roll-Over and Reimbursement

Before March 2017

If the employer was tax compliant, the ETI due to the employer (after the 6 month cycle)

would have been reimbursed at some stage during the next 6 month cycle. An ETI refund

would only be paid if an employer was tax compliant. This means that all tax returns must

have been submitted and there should have been no outstanding tax debt when the

employer’s reconciliation documents (EMP501 and IRP5/IT3(a)s) were received and

processed by SARS. If the employer was not tax compliant, the excess amount would have

been reimbursed when the employer became tax compliant. If the employer failed to be tax

compliant within the next six months, the excess amount would have been permanently lost.

From 2017 onwards this is still applicable.

From March 2017

If the employer does not claim the ETI amount they are entitled to within the 6 month cycle

(for example they forgot to or any other case), then the ETI will be nil (0.00) after the 6 month

cycle and the employer will not receive ETI as a refund and cannot back-date the ETI claims

if the 6 month cycle has elapsed. This is only applicable when the employer did not claim the

ETI amount they are entitled to.

If the employer does not claim the ETI amount due to the fact that the ETI amount exceeds

the employees’ tax due for the month or due to the fact that the employer is not tax

compliant, then the ETI brought forward amount will still be 0.00 in the months following the 6

month cycle (March and September) but the employer will still be eligible to claim the excess

ETI amount as a refund after the 6 month cycle (only if the employer is compliant).

Please Note: It is our understanding that this is what is implied with the amendments in

the legislation. We are in the process of confirming whether our interpretation is in line with

SARS’s.


2.1 Important Notice

When you access any RSA Tax Country after converting to Release 4.8a, the following

Important Notice will be displayed (irrespective of the processing period):

The <Print> button allows you to print this screen for easy reference. This message will

continue to appear until you tick that you have acknowledged the message. This action will

be recorded on the Audit Trail.

This message points you to the ETI Setup Screen and you can click on the <Guidelines>

button for more information on the steps to follow to review your Company’s current ETI

setup.

2.2 ETI Setup

Once your company is in March 2017, a new Menu option is available to give you easy

access to amend the ETI setup after conversion:

Main Menu > Company > ETI Setup

2.0 RSA: Employment Tax Incentive (ETI)

Amendments in the System (Classic/Premier)


Access Control

Access Control to this screen is determined by:

Company > Access Control > Advanced Access Control > Advanced Page 1 > Basic

Company Information:

View Access:

None of the options on the ETI Company Setup (tick boxes, radio buttons, table

selections) can be changed, all can be viewed.

The Check Wage Regulating Measurement can be accessed and be Exported.

2.2.1 Guidelines

Please click on the <Guidelines> button for more details.

2.2.2 ETI Company Setup

When you click on this button you will be taken to the Employee Tax Incentive Tab, also

found from Main Menu > Basic Company Information > Employee Tax Incentive Tab.


Irrespective of which pay period the company is in, the Leave Pay option is no longer

displaying, because it is irrelevant.

Guidelines

Click on the <Guidelines> button for more information.

Step 1: Indicate where the Rate per Hour is stored for Employees with a Wage

Regulating Measure

This will either be on the Increase or on the Calculation Screen.

Increase Screen: Selecting this option will use the Rate per Hour from the Increase

Screen.

Calculation Fields: Selecting this option will use the value from the flagged lines on the

Calculation Screen table below. Select ‘Actual Rate per Hour’ which will reflect as a ‘Y’.

Removed


Step 2: Define the Wage Components

The Wage Components will be defined on the Earnings and/or Calculation Screen.

Earnings: Select ‘Yes’ in the ‘Incl Wage’ column

Calculation Screen: Select ‘Wage Component’ that will reflect as a ‘W’.

Step 3: Indicate where the Employed and Remunerated Hours for ETI Employees are

stored in this company

The Employed and Remunerated Hours must be completed for Wage Regulating and for

Non-Wage Regulating Employees.

Actual Monthly Hours Worked

According to the ETI Act a full month is at least 160 hours. To establish whether a Gross-

up calculation should be done, we need to establish whether the employee worked at least

160 hours for the full month or part of the month.

Permanent Employees: Contractual Hours will be used if the Employee is paid for the full

month. However, if the employee is paid for less than the contractual hours (this can be

due to unpaid leave, no work, shift workers, etc.) then the contractual hours must be

reduced by the unpaid hours (i.e. actual monthly wage paid hours).

Temporary Employees: Employee are typically ticked for ‘Employee Works Irregular

Hours’. The calculated hours entered here will be Ordinary Hours plus Additional Hours of

work with Unpaid Hours excluded. However, you can also simply use the Define or Import

options in this section for these Employees.


Terminated and New Employees that do not work a full Month: The Days Worked for

the Month, which have been entered, are multiplied by the Hours per Day on the Increase

Screen to determine the Actual Monthly Hours Worked.

The Employed and Remunerated Hours can be stored in one of these ways:

Use the Increase Screen Working Hours per Month/Period: The Increase Screen Working

Hours per Month/Period will be used for the Ordinary Hours.

– These hours will be reduced with any Unpaid Days or Hours as indicated on the

Calculation or Hours Screen tables.

– These hours will be increased with any Additional Hours or Days as indicated on the

Calculation or Hours Screen tables.

Define Hours on the Hours and/or Calculation Screen table: Define where Ordinary,

Additional and Unpaid Hours or Days are saved:

– Additional Days (will reflect as “B”)

– Additional Hours (will reflect as “A”)

– Ordinary days of work (will reflect as “D”)

– Ordinary hours of work (will reflect as “H”)

– Not Linked (will reflect as “N”)

– Unpaid Days (will reflect as “V”)

– Unpaid Hours (will reflect as “U”)

Please Note: Additional, Ordinary or Unpaid Days will be multiplied by the number of

Hours per Day on the Increase Screen. The hours will be used in calculations.

Import Hours to the Employee ETI Screen: When this option is selected, any selections

made under Hours will be ignored.

A new menu option is available under Interfaces > Import Data > ETI Hours Import (see

Import ETI Hours below) to import the Employed and Remunerated Hours.

Audit Trail

All selections made on this screen are recorded on the Audit Logger File.


2.2.3 Check Employee Wage Regulating Measure

When you click on this button you will be taken to a list of all the employees in the company,

indicating all the employees currently flagged for Wage Regulating Measure on the

Employee ETI Screen. This is so that you can check that the conversion did the allocation

correctly.

You can print this list or export it to Excel to simplify sorting. If there are any errors you can

use the Global Activation (discussed further down) to correct it.

2.3 Employee Tax Incentive Tab

A number of new fields have been added to the Employee Tax Incentive Tab to cater for the

amendments.


2.3.1 ETI Engagement Date

The ETI Engagement Date field has been added to cater for cases where a company

employs an employee who used to work at an affiliated company. In this instance the ETI

Period Count and Set should also be transferred.

The ETI Engagement Date will be displayed in any Pay Period once Release 4.8a has been

installed.

When adding a new Employee, this field will automatically default to the Date

Engaged. However, it can be changed to be a date prior to the Date Engaged.

When the Date Engaged of an existing Employee is modified, a warning message will

display, reminding you to check the ETI Engagement Date on the ETI Tab.

Changes made to this field will be recorded on the Audit Logger File.

The date cannot be:

After the Period End Date

Later than the Termination Date of an Employee

The ETI Engagement Date will also be displayed on the Employee ETI History Screen.

Please Note: This field can also be imported via the Flexi Fixed Information Utility.


2.3.2 Wage Regulating Measure

Once the Company is in the 2017/2018 Tax Year, the Wage Regulating Measure field will be displayed.

If this option is ticked, it indicates that the employee works in an industry or is doing a job that is regulated by Wage Measures.

Conversion

At conversion, if the Employee is not linked to a Minimum Wage Code or if the Employee

is linked to the VIP Standard #001 Code, the Wage Regulating Measure will not be

ticked.

At conversion, if the Employee is linked to a Minimum Wage Code, the Wage Regulating

Measure will be ticked.

In both these instances, you can tick or untick the default Wage Regulating Measure or

amend it globally (See Global Activation further down).

Changes made to this field will be recorded on the Audit Logger File.

2.3.3 Employed and Remunerated Hours (Rem)

The Employed and Remunerated Hours (Rem) will display in any Pay Period once Release

4.8a has been installed.

If the Import Hours option has been selected on the ETI Setup Tab (as from 2017/2018 Tax

Year), then this field will be enabled.

The Actual Remunerated Hours, as defined on the ETI Setup Tab, will display in this field.

Remuneration Hours will be used for the Gross-up Calculation of Remuneration for ETI

calculation purposes.

If the Employee is ticked for Irregular Hours, the Employed and Remunerated Hours (Rem)

field will not be displayed, and the Irregular Hours Setup will be used for Remuneration

Hours.

If the Employee is New or Terminated and is not employed for the full month, then you can

enter the Days Worked in this Month at the bottom left hand side of the screen. If Days are

entered, then the Hours as setup on ETI Setup Screen will be ignored for the current month.

2.3.4 Employed and Remunerated Hours (Wage)

The Employed and Remunerated Hours (Wage) will display in any Pay Period once Release

4.8a has been installed.

If the Import Hours option has been selected on the ETI Setup Tab (as from 2017/2018 Tax

Year), then this field will be enabled.

The Actual Wage Hours, as defined on the ETI Setup Tab, will display in this field.

Wage Hours will be used in the Gross-up Calculation for the Wage Qualifying Test.


If the Employee is ticked for Irregular Hours, the Employed and Remunerated Hours (Wage)

field will not be displayed, and the Irregular Hours Setup will be used for Wage Hours.

If the Employee is New or Terminated and is not employed for the full month, then you can

enter the Days Worked in this Month at the bottom left hand side of the screen. If Days are

entered, then the Hours as setup on ETI Setup Screen will be ignored for the current month.

2.3.5 ‘Number of days worked in this Month’ Message

We have added a message to remind you to enter the pro-rata days for Employees who

have not worked a full month, due to being a New or Terminated Employee.

Please Note: This field can also be imported via the Flexi Fixed Information Utility.

If you add an Employee with a Date Engaged that starts after the Month Start Date, when

you are on the Employee ETI Tab, the following message will be displayed:

If you select <Yes> the cursor will go straight to the ‘Number of days worked in this Month’

entry field. You will not be forced to enter days.

If you terminate an Employee with a Termination Date earlier than the Month End Date, we

have added the same message. If you select <Yes> the ‘Number of days worked in this

Month’ entry field, will be displayed, from the Employee ETI Tab, for easy entry:

Please Note: It is the DAYS worked in the MONTH that must be entered here. The days

will be multiplied by the Working Hours per Day on the Increase Screen to calculate a pro-

rata ETI value for the period.


2.4 Employee ETI History Screen

The Employee ETI History Screen is accessed from the Payslip Screen by clicking on the

<ETI> button on the top ribbon.

2.4.1 Summary Tab

The Monthly Incentive Table has been adjusted by a cent in all three the brackets.

2.4.2 Detail Tab

The new fields added to the Employee ETI Screen have also been added to the History

Screen:

ETI Engagement Date

Wage Regulating Measure

Employed and Remunerated Hours

Min. Wage and ETI Actual Wage (Non-wage Regulating Measure Employees will now

display the wage instead of the Rate)

or

Min. Rate and ETI Actual Rate (Wage Regulating Measure Employee remains

unchanged)


Employee ETI History Screen for Wage Regulating Measure Employee:

Employee ETI History Screen for Non-Wage Regulating Measure Employee:


Wage Qualifying Test

The calculation for Employees with a Wage Regulating Measure have remained

unchanged: the Minimum Wage Rate is compared to their Wage Rate. If their Wage Rate is

equal to or more than the Minimum Wage Rate = they pass the Wage Qualifying Test.

Please Note: If the Employee is being paid an adjusted Rate per Hour in any month, it is

important to adjust the Rate accordingly in the field as specified on the ETI Setup Screen,

to ensure the Wage Qualifying Test is done correctly.

The calculation for Non-Wage Regulating Measure Employees has changed:

Calculate Total of Wage Components as defined on the ETI Setup Screen.

Compare Total of Wage Components with R2000.

If the Total Wage Components are R2000 or more, then the Employee passes the Wage Qualifying Test.

If the Total Wage Components are less than R2000, calculate the Total Actual Hours

worked, according to:

– New or Terminated Days Worked for the Month (multiplied by Working Hours per Day

on the Increase Screen), or

– As defined for Irregular Hours, or

– As defined on the ETI Setup Screen

Divide by 160 (expected Hours worked in a month) to calculate a Factor.

If the Factor is 1 or more, then the Employee fails the Wage Qualifying Test

If the Factor is less than 1, then use the Factor to do a Gross-up calculation

Gross-up calculation = Actual Wage / ETI Factor

If the answer is R2000 or more, then the Employee qualifies for ETI

If the answer is less than R2000 then the Employee fails the Wage Qualifying Test

ETI Remuneration Calculation

The value for ETI Remuneration is still determined according to the ETI Definitions Set-up Screen (Main Menu > Payroll > Definitions > ETI Definitions).

Calculate the Total ETI Remuneration

Apply the Factor used in the Wage Qualifying Test to calculate the ETI Remuneration

If the ETI Remuneration is R6000 or more, no ETI is calculated

If the ETI Remuneration is less than R6000, refer to the ETI Monthly table to calculate the

ETI Tax Incentive value

Please Note: If an Employee has no Actual Wage but receives Remuneration (Other

Taxable Earnings + Taxable Company Contributions + Fringe Benefits) for the month (e.g.

Employees on Maternity Leave, or Commission only earners), then the Employee fails the

Wage Qualifying Test and no ETI Tax Incentive will be calculated.


2.5 Global Activation of Wage Regulating Measure

You are able to activate or deactivate the Wage Regulating Measure Tick globally.

Payroll > Global Activation > ETI > Wage Regulating Measure

You can select to apply the change to all Employees or to Employees linked to a specific

Wage Code.

2.6 ETI Employed and Remunerated Hours Import

If you have selected ‘Step 3: Import Hours to the ETI Screen’ on the ETI Setup Screen, this

menu option becomes enabled:

Main Menu > Interfaces > Import Data > ETI Hours

This feature allows you to Import or Export the Wage and Remunerated Hours for the

Current Pay Period, using an Excel Spreadsheet.

2.6.1 Import

Access Control

Company > Access Control > Advanced Access Control > Advanced Page 3 > Batch Entry / Import (Full Access) or Company > Access Control > Basic Access > Employee > Salary Information.

When you click on ‘Import’ the following screen is displayed:


Please read the <Guidelines> to ensure the import file is compiled correctly (the import and

export file should be in the same format.

The default file name is IMP-ETI.CSV.

Please Note: Hours cannot be imported for Employees set up for Irregular Hours nor for

New or Terminated Employees where Days have been captured. If there are any such

Employees in the import file, they will be listed on an Exception Report.

2.6.2 Export

Access Control

There is no Access Control for the Export of ETI Hours.

When you click on ‘Export’ the following screen is displayed:


Destination for export file: Defaults to the current payroll directory.

Export file: Provide a name for the export file with the extension .CSV.

Range of Employees: You can export for All Employees or for specific Analysis Codes.

Export Employees: You can export for All Employees or for a specific Employment Status.

Sort Sequence: You can sort according to the following options:


Once the file has exported successfully, a message will display indicating the number of

records exported.

The CSV file, as defined, is saved to the specified destination and the following message is

displayed:

If you select <No>, you will be taken back to the Main Menu and the CSV file is saved in the

specified directory.

If you select <Yes>, Excel will open and you will need to browse for the exported CSV file.

2.7 ETI History Export

Up until now, importing ETI History for take-on purposes has been a tedious task.

To simplify this process we have created an ETI History Utility Export.

2.7.1 Export

You can access the ETI History Export in two ways:

Main Menu > Interfaces > Import Data > Utility Imports > ETI Take-On

An additional selection screen has been inserted here: Select Export


Main Menu > Interfaces > Export Data > ETI History

Export Year: Select the year for which information must be exported.

Destination for export file: Defaults to the current payroll directory.

Export file: Provide a name for the export file with the extension .CSV.

Range of Employees: You can export for All Employees or for specific Analysis Codes.

Export Employees: You can export for All Employees or for a specific Employment

Status.

Sort Sequence: You can sort according to the following options:


Once the file has exported successfully, a message will display indicating the number of

records exported.

The CSV file, as defined, is saved to the specified destination and the following message is

displayed:

If you select <No>, you will be taken back to the Main Menu and the CSV file is saved in the

specified directory.

If you select <Yes>, Excel will open and you will need to browse for the exported CSV file.

All the ETI History information for the selected year will be exported in the correct format.

2.7.2 Import

You can now modify the data, as required, save it as a CSV file and import the amended

data into the payroll system.

Please Note: If you create an import file, from the export, you can save the CSV file with

headings. The import will ignore the headings and counts the position of the data instead.

The Import has been amended to cater for the new fields that are now displayed on the ETI

History Screen:

ETI Engagement Date

Wage Regulating Measure

Employed and Remunerated Hours (Remuneration Hours)

Employed and Remunerated Hours (Wage Hours)

Please Note: Refer to the Guidelines for more details.

2.8 ETI Validation Report (Real Number 767)

The ETI Validation Report will print employees who have an ETI Comment on their ETI

History Screen, due to them having no ETI Incentive calculated for the month.


You can print the report for a specific Range of Analysis Codes or Employee Codes.

The types of Employees without ETI that can be printed are:

Print ALL Employees (without ETI)

Print ACTIVE Employees (without ETI)

Print TERMINATED Employees (without ETI)

Print NEW / TERMINATED in the Current Period Employees (without ETI)

2.8.1 Checklist Control

This report has been added to the Checklist Control, found under the Company menu option

on the Main Menu, during conversion. If you have selected to enable the Checklist Process,

the ETI Validation Report will need to be printed.


The Taxation Laws Amendment Act, 2016 and the Tax Administration Amendment Act, 2016

were promulgated on 19 January 2017 in Government Gazette 40562 and 40563. It contains

the following changes as of March 2017, except where mentioned otherwise. Another source

of information is the National Budget Speech, 22 February 2017.

3.1 Tax Table Changes 2017-2018

When you installed Release 4.8a, the new Tax Rates were applied retrospectively to

1 March 2017. This means that if the update was loaded after the first pay period to which

the new Tax Rates apply, the Tax would be recalculated as from the first pay period in March

2017, and the change has been applied in the period in which you installed the Release.

Taxable Income (R) Fixed Amount Rate of Tax (R)

0 – 189 880 0 18% of taxable income

189 881 – 296 540 34 178 + 26% of taxable income above 189 880




708 311 – 1 500 000 209 032 + 41% of taxable income above 708 310

1 500 001 and above 533 625 45% of taxable income above 1 500 000

Tax Rebates

Primary 13 635

Secondary (Persons 65 and Older) 7 479

Tertiary (Persons 75 and Older) 2 493

Age Tax Thresholds

Below age 65 75 750

Age 65 to below 75 117 300

Age 75 and over 131 150

Personal Service Providers - Companies 28%

Personal Service Providers – Trusts 45%

Medical Aid Tax Credit

3.0 RSA: Statutory Changes (Classic/Premier)


Main Member 303

First Dependant 303

Additional Dependants 204

You can view the Statutory Rates of Tax by clicking on the <TXB> button on any Employee’s

Tax Screen.

The new Tax Deduction Tables will also be applied to R.S.A. Dormant Companies that are in

the 2017 - 2018 Tax Year.

3.2 Other Tax Changes Affecting Payroll

3.2.1 Directors’ Deemed Remuneration

Before March 2017

Directors of private companies (and members of closed corporations) were taxed on the

greater of actual or deemed remuneration.

Deemed remuneration was calculated as the:

previous year’s remuneration, or if not available -

the year prior to the previous year’s remuneration plus 20%, or if not available -

an amount acquired by applying for a SARS directive.

From March 2017

Deemed remuneration will be repealed and directors of private companies (and members of

closed corporations) will only be taxed on their actual remuneration.

3.2.2 Retirement Funding Income (RFI) Definition

Currently employer contributions towards a defined benefit or hybrid fund on behalf of the

employee results in:

a fringe benefit amount calculated using the formula: X = (A X B) – C, where:

– A is the fund member category factor (indicated on the Contribution Certificate)

– B is the employee’s RFI amount, and

– C is total employee contribution amount (excluding voluntary/additional and buy-

back/arrears contributions).

Before March 2017

RFI (retirement funding income) referred to remuneration as defined in the Fourth Schedule

(which included only the taxable % of a travel allowance, company car and a public office

allowance) on which the employer contribution towards the pension/provident fund was

based on. Therefore RFI only included the 20%/80% or 100% of a travel allowance or

company car and 50% of a public office allowance.

Remuneration can be different from employee to employee, depending on the taxable % of

travel allowance which resulted in a situation where two members of the same fund (defined

benefit or hybrid) with the same contribution values had a different RFI value and therefore a

different fringe benefit value.


From March 2017

RFI will be defined as income (taxable earnings + taxable perks + taxable company

contributions), however it will include the full value of a travel allowance, company car and a

public office allowance on which the employer or pension fund or provident fund contribution

towards the pension/provident fund is based on.

To clarify the new proposed legislation:

RFI will include 100% of a travel allowance or use of a motor vehicle perk and 100% of a

public office allowance and not only the taxable value anymore.

To ensure RFI is calculated when the fund itself contributes the retirement fund

contribution on behalf of the members/employees to the fund. This means there will also

be a fringe benefit amount even though it is the fund that actually contributes.

Example of RFI before and from March 2017:

Example: Pension CC is based on Salary and Travel (80% taxable)

Description Total earnings

of employee

RFI (before March

2017)

RFI (from March

2017)

Salary R20 000 R20 000 R20 000

Travel (80%

taxable)

R2 000 R1 600 R2 000

Bonus R50 000

Total R72 000 R21 600 R22 000

3.3 Other Tax Changes Not Affecting Payroll

3.3.1 Subsistence Allowances and Advances

Where the recipient is obliged to spend at least one night away from his/her usual place of

residence on business and the accommodation to which that allowance or advance is

granted to pay for:

meals and incidental costs, an amount of R397 per day is deemed to have been

expended;

incidental costs only, an amount of R122 for each day.

The rate for foreign travel will be gazetted soon and can be found on www.sars.gov.za under

the Legal and Policy tab.

http://www.sars.gov.za/


3.3.2 Table for Calculation of Rate per km\Travel Allowance

Value of the Vehicle

(Including VAT)

(R)

Fixed Cost

(R p.a.)

Fuel Cost

(c/km)

Maintenance Cost (c/km)

0 – 85 000 28 492 91.2 32.9

85 001 – 170 000 50 924 101.8 41.2

170 001 – 255 000 73 427 110.6 45.4

255 001 – 340 000 93 267 118.9 49.6

340 001 – 425 000 113 179 127.2 58.2

425 001 – 510 000 134 035 146.0 68.4

510 001 – 595 000 154 879 150.9 84.9

Exceeding 595 000 154 879 150.9 84.9

Prescribed Rate for Re-imbursive Kilometres

The SARS prescribed rate per kilometre increased from R3.29 to R3.55.

3.3.3 Remuneration Proxy

Currently the ‘remuneration proxy’ is used in 3 areas of employment tax:

The tax exemption rules for bursaries granted to a relative of an employee by an

employer.

The acquisition of immovable property.

The residential accommodation fringe benefit value.

Before March 2017

‘Remuneration proxy’ was defined as Fourth Schedule remuneration but excluding the

residential accommodation fringe benefit value.

From March 2017

‘Remuneration proxy’ will be remuneration defined in paragraph 1 of the Fourth Schedule

and will only exclude the residential accommodation fringe benefit value when calculating the

residential accommodation fringe benefit.

‘Remuneration proxy’ will include the residential accommodation fringe benefit value when

calculating:

the tax exemption for bursaries granted to a relative of an employee by an employer and

the acquisition of immovable property.


3.3.4 Employer Provided Bursaries

A scholarship or bursary granted by the employer (or associated institution in relation to the

employer) to a relative of an employee was subject to the following conditions:

The scholarship or bursary was not exempt if the remuneration proxy exceeded

R250 000

If the remuneration proxy did not exceed R250 000, then the first R10 000 of a

scholarship or bursary in respect of grade R to grade twelve or a qualification to which an

NQF level from 1 up to and including 4 has been allocated was exempt from normal tax.

If the remuneration proxy did not exceed R250 000, then the first R30 000 of a

scholarship or bursary in respect of a qualification to which an NQF level from 5 up to and

including 10 has been allocated was exempt from normal tax.

Change:

Backdated to March 2016, the exemption thresholds for bursaries granted by the employer

(or associated institution in relation to the employer) to a relative of an employee have

increased to the following amounts:

The scholarship or bursary is not exempt if the remuneration proxy exceeds R400 000.

If the remuneration proxy does not exceed R400 000, then the first R15 000 of a

scholarship or bursary in respect of grade R to grade twelve or a qualification to which an

NQF level from 1 up to and including 4 has been allocated is exempt from normal tax.

If the remuneration proxy does not exceed R400 000, then the first R40 000 of a

scholarship or bursary in respect of a qualification to which an NQF level from 5 up to and

including 10 has been allocated is exempt from normal tax.

Please Note: The new thresholds must be backdated to March 2016.

3.3.5 Reimbursive Travel Allowance

From March 2017

The simplified method for business kilometres travelled in the application of section 8(1)(b)(ii)

of the Income Tax Act is as follows:

Report the reimbursive travel allowance on the tax certificate against code 3703 if:

the rate of reimbursement is less than the prescribed rate, and

less than 12 000 business kilometres (previously 8 000 business kilometres) are

reimbursed in the tax year, and

no travel allowance is paid in addition to the reimbursed amount.

Report the reimbursive travel allowance on the tax certificate against code 3702 if:

the rate of reimbursement exceeds the prescribed rate, or

more than 12 000 business kilometres (previously 8 000 business kilometres) are

reimbursed in the tax year, or

a travel allowance is paid in addition to the reimbursed amount.


3.3.6 Certain Dividends Included in Remuneration

From March 2017

The definition of remuneration is expanded to include certain dividends from restricted equity

instruments (section 8C shares).

PAYE should be deducted from dividends as specified in paragraph (dd), (ii) and (jj) of the

proviso of section 10(1)(k)(i).

Currently it is unclear if the employer should also apply for a directive, but we assume the

PAYE amount will be acquired by applying for a directive, the same manner in which the

employer should currently apply for a section 8C share amount when vesting and/or on any

return of capital. We will, however, communicate the information once we have final

confirmation.

There is also a possibility that SARS will create a new IRP5 code/s for these dividends. Once

SARS has released the new PAYE Business Requirement Specifications document, we will

be able to confirm this.

Please note that this amount will be included in the SDL, UIF, ETI remuneration and

remuneration for the purpose of calculating the tax benefit for contributions towards

retirement funds.

Please Note: We advise employers to consult their auditor or a tax consultant to confirm

whether the dividends from restricted equity instruments are exempt or included in

remuneration.

3.3.7 Value of ‘B’ in the Residential Accommodation Fringe Benefit Calculation

Please note that the value of ‘B’ for the purpose of calculating the fringe benefit value for free

or cheap residential accommodation was not mentioned in the 2017 budget speech.

However, R75 750 is the new tax threshold and is usually the value of ‘B’ in the calculation.

Please Note: This value has not yet been promulgated.


The maximum Basic Salary on which the SSNIT Tier1 contribution is based has increased

from GHC 20 000 to GHC 25 000, effective 1 January 2017.

An amendment has been made to the Ghana Tax Tables to incorporate the new maximum

value and the revised Tax Tables were sent to all our Ghana clients in January.

However, if you did not install this file (Ghanatax.zip) the changes are also part of this

release and will then be applied as from the pay period in which you installed this release.

Please Note: If you have any queries concerning backdating this information, please

contact your Africa Support Consultant.

4.0 Africa: Ghana – Change to SSNIT Tier 1

(Premier)


Statutory changes effective 1 January 2017 have been published in the Kenya Gazette

Supplement, Acts, 2016. (No. 159, Acts No.38). These changes have been sent to all our

Kenya clients in January.

However, if you did not install this file (AfrTax_R47a_210703.zip) the changes are also part

of this release and will then be applied as from the pay period in which you installed this

release.



The change listed below affects payroll processing:

The Resident Personal Relief increased from KShs1 162 per month to KShs1 280 per

month.

The maximum deduction for Owner Occupied Interest Paid increased from KShs150 000

to KShs300 000 per year.

The Annual Tax Rates has changed.

Annual Tax Table – effective January 2017

Income Band (KShs) Rate

First 134 164 10%

Next 126 403 15%

Next 126 403 20%

Next 126 403 25%

Over 513 373 30%

5.0 Africa: Kenya Tax Tables (Premier)


In January we sent out a notification to all our Nigeria clients concerning changes that they

need to make to their Company setup. However, if you did not apply these changes yet, then

they need to be implemented as from the pay period in which you installed this release.



The Nigerian Employers’ Consultative Association (NECA) and the NSITF have signed a

Memorandum of Understanding that gives, among other things, an acceptable definition of

payroll.

According to the Employee Compensation Act of 2010, the NSITF Contribution is 1% of total

monthly payroll.

Current Payroll Setup

Payroll is not defined in the Act. However, there is a definition of remuneration.

In 2011, the NSITF and NECA agreed that the NSITF Contributions should be based on 1%

of Total Emoluments. According to the agreement the Total Emoluments was defined as the

sum of Salary, Transport and Housing Allowances.

The New Agreement

The NSITF Contribution is still 1% of payroll. The definition of remuneration provided in the

Act will be applied in the place of “payroll”.

‘Remuneration’ means Basic Wages, Salaries or Earnings designated or calculated, capable

of being expressed in terms of money and fixed by mutual agreement or by law which are

payable by an employer to an employee for work done or to be done or services rendered or

to be rendered: and Allowances which include Rental, Transport, Meals and Utility or other

allowances as may be determined by the Board, from time to time.

It was agreed upon that the definition of remuneration provided above excludes the following

income:

Pension Contributions Bonuses – performance related payments Overtime payments Irregular once off payments

Our interpretation of the above is that the NSITF contribution is based on the fixed/regular

earnings of the employee. Fringe Benefits, Employer Contributions and Statutory

Contributions are not considered remuneration.

Please Note: If your Employees do not receive any other fixed/regular earnings in addition

to the Basic Salary, Housing and Transport Allowances, then you do not need to make any

changes to the system or reports.

6.0 Africa: Nigeria Social Insurance Trust Fund

(Premier)


6.1 Payroll Changes

6.1.1 Add Regular Earnings to the Calculation of NSITF

Now that the NSITF is no longer based on just Basic Salary, Housing and Transport

Allowances, the definition screens have to be updated and the Reports Setup Screen for the

NSITF Report needs to be adjusted to reflect all the earnings which the NSITF Contribution

is based on.

From the Main Menu click on Payroll > Definitions > Earning Definitions

Click on the <Change Mode> button in the bottom left hand corner

In the NSITF column select ‘Y’ for all the additional earnings you would like to add

Please Note: Only Earnings of a regular nature will be included in this calculation. Fringe

Benefits, Employer Contributions and Statutory Contributions are not considered

Remuneration. Specifically excluded is Pension Contributions, Bonuses, Overtime and

Irregular/Once-off payments.

6.1.2 Amend Report Setup

After the definition screen has been updated you need to update the NSITF Contribution Report Definitions

From the Main Menu click on Reports > Nigeria Reports > NSITF (Actuals and Budget) >

Report Setup

Add the additional earnings you flagged for NSITF on the Earning Definitions Screen


Zambia’s 2017 National Budget was delivered to the National Assembly by the new Minister

of Finance, Honorable Felix Mutati, MP on Friday 11 November 2016.

These changes have been sent to all Zambia clients in January 2017. However, if you did not

implement this yet, these changes are also part of this release and will then be applied as

from the pay period in which you installed this release.



7.1 Skills Development Levy

The Skills Development Levy Act, 2016, was assented by the President of Zambia on the

27th of December 2016; and it shall come into operation from 1st of January, 2017. This Act

introduces a new Statutory Contribution for employers in Zambia.

Contributions

Contribution is 0.5% of the Gross Emoluments payable to an Employee including a Casual

Employee. This is only paid by the Employer and contributions are made on a monthly basis.

Basis of the Contributions

“Emoluments” means any Salary, Wage, Overtime or Leave Pay, Commission, Fee, Bonus,

Gratuity, Benefit, Advantage (whether or not that advantage is capable of being turned into

money or money’s worth), Allowance, including Inducement Allowance, Pension or Annuity,

paid, or granted in respect of any employment or office, whether engaged in or held.

Please Note: According to the SDL Act, Emoluments exclude any amount paid to an

Employee by way of Pension Benefit. Pension Benefit includes any Pension,

Compensation, Gratuity, Severance Pay, Repatriation and other similar Allowances

received in respect of a person’s services at cessation of employment or expiry of contract.

Exemptions

The levy is not payable by:

An employer in the public service or a local authority

An employer whose annual turnover is below K800 000; and

A public benefit organization (PBO) approved as such under the Income Tax Act (ITA)

Administration and Payment of Contributions

The due date for payment and return filing of SDL is the 10th of the month following the

month in which the SDL becomes due.

The SDL will be paid into the Technical Education, Vocational and Entrepreneurship Training

Authority Fund. However, the SDL remittance shall be collected by the ZRA.

7.0 Africa: Zambia Statutory Changes (Premier)


SDL will be administered under the ITA. Penalties under the ITA will be applicable for non-

compliance. Late return filing and payment of SDL would attract penalties and interest as

provided for under the Income Tax Act.

Please Note: The SDL Definition Line and the Method of Calculation needs to be added

manually. Please call your Africa Support Consultant for assistance.

7.2 NAPSA Ceiling Increase

As from 1 January 2017, the new NAPSA ceiling is K17 892.20. The maximum an Employee

or Employer will contribute per month at 5% this year is K894.61.

Please Note: The adjustment to your NAPSA Method of Calculation to align with the new

ceiling needs to be done manually.

7.3 New PAYE Tax Tables

The Minister proposed an increase to the exempt threshold for Pay As You Earn (PAYE)

from K3 000 to K3 300 per month; as well as an increase to the top marginal tax rate from

35% to 37.5%.

2017

Annual Income

Tax Rate

From (K) To(K)

0.00 39,600.00 0%

39,600.01 49,200.00 25%

49,200.01 74,400.00 30%

74 400.01 and above 37.50%

2016

Annual Income

Tax Rate

From (K) To(K)

0.00 36,000.00 0%

36,000.01 45,600.00 25%

45,600.01 70,800.00 30%

70 800.01 and above 35%


The following section will only apply to you if you are licensed for Job Management and

Extended GL and the Extended Flexi General Ledger and Cost Screen must be selected

on the Company Miscellaneous Screen. This feature is specifically used by the Municipalities

in RSA, but is available to everyone.

The minimum requirements of the mSCOA Budget Module has been published. We

reviewed the current Budget Module in the light of the new requirements and realised that we

need to make a few amendments.

We also received some feedback on the module after implementation at one of our

Municipalities and realised that we need to cater for Global Increases on Budget Values.

8.1 Increase of Budget Information per Job

Up until now the options on the screen allow you to create a Budget for a new year by

copying the values of the current Budget Year to the Next Budget Year and then applying an

Increase Percentage.

To access the Budget Screen:

Main Menu > Personnel > Job Management > Change Job Code Definitions

The following enhancements have been made:

8.0 Budget Module- mSCOA (Premier)


The Budget Value can be increased from a specific calendar month onwards, e.g. the

Financial Year runs from July to June, but we give increases in January, Calendar Month

one. Therefore, I only want to increase salary values from January to June.

You can create Budget Values for multiple years by selecting a ‘From Fin Year’ and a ‘To

Fin Year’.

If the ‘From Fin Year’ is equal to the ‘To Fin Year’ then the values already loaded on the

Budget should be increased with the percentage selected.

If the ‘From Fin Year’ is unequal to the ‘To Fin Year’ then the values from the ‘From Fin

Year’ will be copied to the ‘To Fin Year’ and an increase percentage will be applied from

the Calendar Month as specified.

A Fin Year can be copied to another Fin Year with 0% increase as well.

Please Note: You have to click in the ‘% Increase’ field for the increase process to start.

When you click in the ‘% Increase’ field, a message will prompt you concerning what to

do next:

You will only be able to copy the Current Tab, i.e. Earnings or Deductions or Company

Contributions at a time.

You can either select Specific lines or All lines to be increased.

Please Note: The Budget Years can only be increased one by one, multiple years cannot

be increased simultaneously.

8.2 Global Budget Increase

The Global Budget Increase will assist you to simplify the setup of Budgets and to increase

values without accessing every individual Job.

Global Budget Increase is found under a new menu option:

Main Menu > Personnel > Job Management > Global Budget Increase


All the available Jobs in the company are listed.

Select Job Codes and Definition Lines

You can select the applicable Jobs by changing the ‘N’ flag to a ‘Y’ flag in the ‘Include’

column.

Alternatively, you can tick or untick ‘Select All Job Codes’.

You can filter the Jobs you want displayed to simplify the selection list.

Select either Earnings, Deductions or Company Contributions to be changed.

All the defined lines for the Definition set you selected will be listed.

You can select the applicable Descriptions by changing the ‘N’ flag to a ‘Y’ flag in the

‘Include’ column.

Alternatively, you can tick or untick ‘Select All Lines’.

Select Increase Percentage and Period

Enter the Increase Percentage.

‘From Calendar Month’ indicates the first month within the Financial Year where the

increase should be applied. e.g. the Financial Year runs from July to June, but we give

increases in January, calendar month one. Therefore, I only want to increase salary

values from January to June.

You can create Budget Values for multiple years by selecting a ‘From Fin Year’ and a ‘To

Fin Year’.

If the ‘From Fin Year’ is equal to the ‘To Fin Year’ then the values already loaded on the

Budget should be increased with the percentage selected.


If the ‘From Fin Year’ is unequal to the ‘To Fin Year’ then the values from the ‘From Fin

Year’ will be copied to the ‘To Fin Year’ and an increase percentage will be applied from

the calendar month as specified.

If the Increase % is 0, the ‘From Fin Year’ will be copied to the ‘To Fin Year’ without any

changes.

Please Note: When All Job Codes are selected and the current Financial Year’s Budget

Values are zero, the selected Job Codes with zero values will be forced back to No and a

message will be displayed:

Please Note: When a Job Code is selected that has no Budget Record, the selection will

be forced back to No and a message will be displayed:


Income Verification enables organisations to provide their employees’ payslip information to

registered Financial Services Providers (FSP), through a secure platform managed by Sage.

Participating FSP’s can then access the necessary payslips once the individual provides

consent to the FSP during a financial application.

9.1 How it Works

Historically, when applying for finance through a Financial Service Provider (FSP), ‘John

Brown’ would have been required to provide 3 months worth of payslips as well as the other

legally required documentation (FICA, Bank Statements, ID, etc.). Going forward, if John’s

employer is participating in the Income Verification programme, then John simply has to give

the FSP consent to request the necessary payslips electronically.

9.2 Benefits to Employer and Employee?

Income Verification presents a range of benefits to both the company and the individual,

including the following:

There are no additional costs to the employer or employee.

Reduced phone calls from creditors to businesses for verification of employee income.

Reduced phone calls from creditors for verification of employment.

Stronger compliance to the POPI Act (Protection of Personal Information).

Reduces the need to supply physical documentation when applying for credit.

Supports responsible lending practices.

Reduces the time that employees spend out of the office to complete credit applications.

Applications take less time to complete and receive approval from the FSP.

Fully automated process.

Consent driven program, eliminating abuse and fraudulent requests of information.

Independent audits rated the security model of the highest standard internationally.

9.3 Income Verification Setup Process

In Non-Monthly Companies, during the Start New Period process to a new Month, and in

Monthly Companies during each Start of Period process, the following message will be

displayed:

9.0 Income Verification (Classic/Premier)


If you click on <Yes> the ‘Participate in Income Verification’ tick on the Company

Miscellaneous Screen Tab 4 is activated, the Employee Payslips will be uploaded and the

message will not be displayed again.

.

If you click on <No>, the tick is not activated and no Employee Payslips will be uploaded.

If you click on <No>, this question will be displayed again for two more Month-ends,

appearing three times in total, in each Company.

If you answered <No> for three consecutive Month-ends, the question will not be displayed

again.

Guidelines

Click on the <Guidelines> button to open a document containing information on the Income

Verification process.

You can find the same Guidelines on the Company Miscellaneous Tab 4 Screen:


Main Menu > Company Miscellaneous > Miscellaneous 4

The activation or removal of this tick will be recorded on the Audit Logger File.

9.4 Access Control

If the user doing the Start New Period does not have access to the Company Miscellaneous

Screen, then the Income Verification Message will not be displayed.

Only users with access to the Company Miscellaneous Screen will see the message during

the Start New Period process and be permitted to change the ‘Participate in Income

Verification’ tick on the Company Miscellaneous Screen Tab 4.

9.5 Uploading of Payslips

If the ‘Participate in Income Verification’ tick on ‘Company Miscellaneous Tab 4’ is on, then:

When printing Normal New PDF Payslips from the system, an indicator will be set to

indicate that the Payslips are already created.

If the client does not use PDF Payslips, then Basic PDF Payslips will be created during

the Start New Period process.

All Payslips for Employees with either an ID or a Passport or both, will be saved in a new

Data Base: SCExt.vdb4. This DB is created in C:\Users\Username\AppData\Local\Sage

Connected Services\Data

During Start New Period, the following message will be displayed, when the Payslips are

saved to the DB:

The local DB will be cleared when the Payslips are successfully uploaded to the secure cloud

platform.

The Upload of Payslips will be recorded on the Audit Logger File.


The Employee Work Address can either be entered on the Employee Address Tab or by

linking the Employee to a Work Address Code. Up until now, the Work Address Code has not

made provision for the Country Code.

This meant that once you have linked the Employee to the Work Address Code, that you

would still need to select or enter the Country Code. Clients kept forgetting to do this, which

causes errors when creating IRP5 Certificates in RSA Tax Countries, because it is a

mandatory field.

10.1 Work Address System Description Code

To access the Work Address System Description Code from the Main Menu:

Payroll > Definitions > System Description Codes > Work Address

10.1.1 Conversion

During conversion, the Country Code field will be added to all existing Work Address Codes

that are defined under System Description Codes.

The Country Code field will default the Code according to the Tax Country of the Company:

ZA - RSA

BW – Botswana

GH – Ghana

LS – Lesotho

MZ – Mozambique

10.0 Work Address Code (Classic/Premier)


NA – Namibia

NG – Nigeria

SZ - Swaziland

Please Note: In Other African Tax Country Companies, the Country Code will default

to ’ZA’, because it is not possible to default to the actual Country Code. Remember to

amend the Country Code by going into the Work Address Code, entering on the Country

Code field and selecting the applicable Country Code.

10.1.2 Adding Work Address Codes

When you add a new Work Address Code and you get to the Country Code field, the County

Code Look-up List will display and the applicable Country Code, determined by the Tax

Country of the Company, will be highlighted.

In RSA Tax Countries, the Country Code field is mandatory. In other Tax Countries, this field

is optional.

10.2 Employee Address Details Tab

If the Employee Work Address is linked to a Work Address Code, then Country Code field

will now be disabled, together with the rest of the Work Address entry fields. This is because

the Country Code will now display according to the Work Address Code to which the

Employee is linked.


The Country Specific Reports for Swaziland have been added under the Reports option on

the Main Menu.

The Statutory Reports for the Swaziland Tax Country have been run from the Reports and

Maintenance Menu until now. Swaziland customers will have the option to use either the

existing reports or the new reports as described in this document. It is advisable to start

using the new reports as the existing reports will no longer be maintained.

Basic or Advanced Access Control must be set to Report Level 5 to allow access to the

Country Specific Reports Screen.

Please Note: Only one user can access the Reports Menu for a specific Tax Country at a

time. If another user is already printing reports and you try to access the Country Specific

Reports Menu, or you select that same Company via the Multiple Company option, you will

be stopped with a message.

11.1 Reports Menu

All the Statutory Reports that are available for Swaziland Tax Country will be listed on this

screen.

11.0 Reporting: Swaziland - Country Specific

Reports (Classic/Premier)


Print-screen of Swaziland Reports Screen:

Before you are able to run a Report, the Report Setup needs to have been completed for that

Report. If you select a Report for which you have not yet completed the Setup, a message

will be displayed explaining this.

Click on the <Report Setup> button.


The Magnifying Glass Icon takes you to an explanation of what is included in each of the

components of the Report.

The groups from which you may select are pre-defined according to mandatory specifications

set up per report and could include: Earnings, Deductions, Company Contributions, Perks,

Calculations Screen, Own Screen and Hours Screen. These selections are saved when the

Report is run. The setup only needs to be done once per Company (if single reports are

exported).

Please Note: Your selections will be saved. The only time you have to access the Report

Setup Screen again is if new Payroll Definitions were added that must be included in the

Report.

If you feel that there are groups that need to be selected from for a specific report that is

currently disabled, click on the <Support Letter> button on the bottom right hand corner of

the screen. This will open a VIPSD Password Letter, which you will need to complete and

return to Sage Africa Support for further assistance. This will permit us to give you access to

the Company to enable the groups you want to access for selection purposes.

The print-screen button at the bottom of the screen will print the list of selections made.

The reports can be printed for the current Company or for multiple Companies. When

selecting multiple companies, all the Companies that are licensed for the same Tax Country

as the one you are printing from, are listed on the next screen. The “Setup Screen” as

defined in the Company from where you are printing, will be applied to all the Companies.

To print the reports for multiple Companies, the Companies to be consolidated must be in the

same processing period and have the same company structure in terms of Earnings,

Deductions, Perks and Calculation Definition lines. When consolidating reports for

Weekly/Bi-Weekly payrolls with Monthly payrolls, make sure that the Weekly/Bi-Weekly

companies are in the last period of the month.

Please Note: All reports have the option to print either all applicable employees or a range

of employees. The user can select to print per Employee or per Analysis Code.


The Reports will be saved either when the .CSV file is created in Excel or by clicking on the

<Save> button.

11.2 Reports in Excel

When clicking on the <Continue> button, Excel will automatically open. Depending on your

Excel Macro Security Settings you will then click on the <Enable Content> button, usually

found in a yellow line above the worksheet. The user will then be prompted to select the

Sage VIP directory. The report will automatically be populated with the applicable values.

Once populated you will immediately be requested to select the directory to which this report

must be saved and to confirm the report name, which may be edited at this point.

To remove the step for “click on the <Enable Content> button” you can change your Macro

Security Settings:

In Excel select the Developer Tab on toolbar

Select Macro Security

Select Macro Settings

Select the option “Enable All Macros (not recommended, potentially dangerous code can

run)

Please Note: If the report does not seem to populate correctly, please consult the section

regarding the Windows Regional Settings of your computer.

Please Note: In order to run the reports successfully the minimum requirement for

Microsoft Office Excel is Version 2007 and up. Also ensure that the latest Service Packs

and Upgrades\Updates for your Windows and Office versions are installed.

11.3 Audit Log File

The Audit Log File will record the Report that has been printed.

Please Note: Changes made to the Report Selections will not be recorded on the Audit

Log File due to the large number of changes that can be made.


11.4 Windows Regional Settings

Click on the Start Icon and go to Control Panel. Select the Regional and Language Options.

On the Format Tab, it is only important that the “Short Date” is set to “yyyy/mm/dd”.

Click on the <Additional Settings> button. On the Numbers Tab, it is only important that the

“Decimal symbol” is a full-stop and that the “List separator” is a comma.

Click on the Currency Tab. It is only important that the “Decimal symbol” is a full-stop.

Please Note: The Currency Symbol could differ from country to country, but the default

setting can be accepted.


11.5 Swaziland Reports

The following Reports are available for Swaziland:

Report Monthly Quarterly Annual

SNPF Report X

PAYE Monthly Declaration Return X

PAYE 16

X

PAYE 15

X

PAYE 05 X

IRP5 Electronic Submission File

X

11.5.1 SNPF Report – Electronic NPF200 Form

The electronic NPF200 Form is created when running this report. The report includes details

of employee’s statutory and voluntary contributions towards Swaziland National Provident

Fund. This form can be emailed in Excel format to SNPF or printed on plain paper for

manual submission to SNPF.

In addition to the initial Report Setup Screen, the report has one other Setup Screen. When

running the report you must indicate the following:

Graded Tax Number: Select from the dropdown the field used to indicate the

employee’s Graded Tax Number. The options to choose from are:

– Deduction Line Reference field

– Tax Number field

– Tax Office field

PIN Field Used: Select from the dropdown the field used to indicate the employee’s

PIN\Tax Number. The options to choose from are:



Penalty: If any penalties due in the reporting month, you can enter the value in this field.


Contact Person: Indicate the full name of the person responsible for submitting this

return.

Job Title: Indicate the job title of the person responsible for submitting this return.

Wage Limit: Do not change the default value of 2 300.00 unless the limit is increased as

per instructions from the Swaziland Revenue Authority – this value is used to apply the

maximum value for the Wage amount used in the calculation of the SNPF Statutory

Contribution.

11.5.2 PAYE Monthly Declaration Return

This form is a monthly PAYE return and can be submitted electronically if the company is

registered for e-tax, otherwise the form can be duplicated out of the payroll system and

submitted as is.

Income from Lump Sum Payments, such as Notice Pay, Severance Pay, Redundancy

Payments etc. should not be included in this return.

In addition to the initial Report Setup Selection Screen, the report has one other Setup

Screen. When running the report you must indicate the following:










Business Fax Number: Enter the fax number of the company.

Penalty: If any penalties are due, you can enter the value in this field.

Penalty Month: Select the applicable month when the penalty was due.

Interest: If any interests are due, you can enter the value in this field.

Interest Month: Select the applicable month when the interest was due.



return.

Job Title: Indicate the job title of the person responsible for submitting this return.

11.5.3 PAYE 16 Reconciliation of Tax Deductions Made and of Stock of Certificates on

Hand

This report is for the reconciliation of Tax Deductions made for the applicable Tax Year and

of stock of Tax Certificates. This report can be used to complete the PAYE 16 Form as it

must be submitted on pre-printed stationery.













return.

Work Telephone: Enter the work telephone number of the person responsible for

submitting this return.

Home Telephone: Enter the home telephone number of the person responsible for

submitting this return.

Cell Number: Enter the cell phone number of the person responsible for submitting this

return.

Your PAYE Recon Section: The following fields can be completed on this screen or on

the manual pre-printed form – this section is not mandatory:


– Receipt Number: Type in the receipt number for each month as provided by the

SRA.

– Date Paid: Select from the calendar or type in the date the payment was made to

SRA.

– Interest: If any interests are due, enter the value in the applicable month.

– Penalty: If any penalties are due, enter the value in the applicable month.

– PAYE: Type in the total PAYE paid to the SRA for each specific month. This will

include additional tax.

– Graded Tax: Type in the total Graded Tax paid to the SRA for each applicable

month.

– Total: No input required – the system calculates the total value for PAYE, Interest,

Penalties and Graded Tax.

– Reason for Difference in Annual Tax Paid and Payroll: Type in the reason if there

is a difference between the PAYE paid over to SRA and the actual value on the

payroll for the applicable tax year.

– Description for Other Amounts: This field refers to any amount not accounted for

specifically in the report, but reported in the financial statements as part of the

employee cost. An example of what should be included in this field is Lump Sum

Payments.


11.5.4 PAYE 15 Annual Return of Salaries

This report is an annual report with detail per employee of the income earned and taxes paid

for the applicable tax year.

This form can be printed out of the payroll on normal paper and submitted manually to the

Revenue Authority as is.

Any income or payments that are exempt from tax must be excluded from this report.












Business Fax Number: Enter the fax number of the company.


return.

Class: On the Employee Statutory Detail Screen you must indicate if the employee has

a Single or Multiple Sources of Income. To indicate if an employee is a Director, Part-

Time or Director then select from the dropdown the field in the payroll used to indicate in

which category the employee falls. If the ‘Not Used’ option is selected the employee will

be classified as either Single or Multiple Source of Income as per Employee Statutory

Detail Screen.


11.5.5 PAYE 05 Employee Tax Certificate

This report generates the Tax Certificates. You have the option to print to plain paper or on

official pre-printed stationery.

No Tax Certificate Numbers are stored on the payroll.












Type of Stationery: Select one of the following options to indicate on what type of

stationery the tax certificates must be printed on:

– Official Stationery

– Full Plain Paper

– PDF

Print PAYE Information for: Select if you want to print Tax Certificates for Employees

with or without PAYE for the applicable Tax Year.

Employee Status to be Printed: Select if you want to print Tax Certificates for:

– Active Employees

– Discharged Employees

– Both of the above


To Print 2 Copies per Employee of the PAYE05 Tax Certificate:

The PAYE05 Pre-Printed Stationery are packaged as two certificates per Tax Certificate

Number – the one is the original and the other a copy. When printing to the pre-printed

stationery and you have to print two copies, you have to select the following options when

printing from Excel:

Select to print 2 Copies

Select Uncollated so that Excel prints 2 copies of the same certificate before starting the

next one.

Please Note: The Password requirements if you have selected to print the PAYE05 Tax

Certificates to PDF, is as follows:

If the employee has an ID Number, we use this as the password.

If the employee has a Passport Number, we use this as the password.

If no ID Number or Passport Number, then we use the Date of Birth of the employee in

date format yyyymmdd.

11.5.6 IRP5 Electronic Submission File

The Swaziland Revenue Authority (SRA) introduced an electronic submission whereby

employers can fill in an excel spreadsheet containing the employees’ details and send it back

to the Revenue Authority after Tax Year End. When you make use of this newly designed

electronic spreadsheet, tax certificates are not required to be submitted to the SRA. If you

still make use of the other forms of reconciliation, the tax certificates must, however, still be

submitted to the SRA.

The excel file must be emailed to [email protected].



mailto:[email protected]


12.1 Tanzania Form LAPF 10 Report

The Local Authority Pension Fund (LAPF) is one of the 5 mandatory Social Security

Schemes in Tanzania. Form LAPF 10 is submitted on a monthly basis with detail of the

Basic Salary and LAPF contributions per employee.



Department Code: Enter the code indicating the department under which the employer

is registered under.

Zone/Regional/District Number: Enter the Zone/Region/District in which the employer

is registered under.

Cheque Date: Enter the date on cheque used for payment to LAPF.

Cheque No: Enter the cheque number used for payment to LAPF.

Receipt Date: Enter the date on receipt for payment from LAPF.

Receipt Number: Enter the receipt number for payment from LAPF.

Issued By: Enter the name of the person responsible for submitting this form.

Supplementary % for Employee: Enter the supplementary employee contribution

percentage only if all employees contribute the same percentage.

Supplementary % for Employer: Enter the supplementary employer contribution

percentage only if the employer contributes the same percentage for all employees.

12.2 Other Report Changes (Premier / Classic in some instances)

Country Report Detail

Ghana

IT51S Annual Tax

Deduction Return

Removed this report from the Ghana report menu as

this report is not in use anymore.

Ghana IT51 Monthly Tax Removed this report from the Ghana report menu as

12.0 Reporting: Africa – New and Changed Reports

(Premier)


Country Report Detail

Deduction Form this report is not in use anymore.

Ghana

IT51Additional Tax

Schedule



Ghana

IT53 Cessation of

Employment



Ghana

IT54 New

Employees



Ghana

DT0108 Annual

PAYE Deductions

Return

Wording on Template was not displaying correctly –

this has been resolved.

Kenya Cooperative Bank

EFT File New Bank File.

Kenya P10D Quarterly

Return Employer's PIN was not populating – resolved.

Kenya P9 Tax Deduction

Cards

Updated with Certificates with the 2017 statutory

changes for Personal Relief and Mortgage Relief.

Kenya P10 iTax Report Updated the column headings with the 2017 statutory

limits for Mortgage and Personal Relief values.

Lesotho P19 PAYE Monthly

Tax Return

The summary was printing the correct values but the

detail report excludes values for Overtime, Leave

Allowances, Supplementary values and Strike

amounts.

Malawi P9 Tax Certificate

Added a field on the User Form screen to enter the

name of the Company Representative – this will now

print on each Tax Certificate.

Malawi P9 Tax Certificate Added the option to print the P9 Tax Certificates to

PDF format.

Mozambique Tax Certificates

Added fields on the User Form screen to enter the Job

Title of the Company Representative and to populate

the “Posição” field with this value.

Populated the Computer Date when report was printed

in the “Data” field.

Mozambique Relacao Nominal

The report generated an error when no fields were

linked to the selections that indicate the employee’s

Occupational Professional Level, Grading Level,

Occupational Status and Occupational Category –

issue resolved.

Namibia PAYE4 Report

For non-monthly companies the current period values

were printing instead of the MTD+ values – issue

resolved.

Zambia P22 Tax Certificate The Gross Pay value was not populating for non-

monthly companies – issue resolved.

Zimbabwe P6 Tax Certificate

Changed the description of “Total Earnings” to “Total

Taxable Earnings”.

Added a separate field for Bonus Exempt Portion

under the Total Earnings section.

Exclude the Non-Taxable Earnings and Bonus Exempt

portion from total value for “Total Taxable Earnings”.


When you do a Live UIF Submission Run, the usual message will display that the file has

been created and that it needs to be emailed:

As from this Release, when you click on <Continue> the Report will print and the following

message is displayed:

If you click on <Yes> an email will be created addressed to:

[email protected].

The UIF Submission files are already attached to the email and the subject of the mail is

“Declarations”.

If you click on <No>, the Report will print and you will need to email the submission yourself,

as always.

13.0 Reporting: RSA - UIF Submission Report (Real

Number 651) (Classic/Premier)

xxxxxxxx

mailto:[email protected]


14.1 Instructions to Import Reports

Reports can either be imported from Batch Import Reports or from the Export/Import Reports

option on the Reports Menu.

14.1.1 Batch Imports

Un-tick the Select All option.

Tick the Module(s) where the Report(s) listed below can be found.

Continue

The Report List is displayed with all the reports set to Y to import.

Un-tick the Select All option.

Find the applicable Report and select it.

Continue will import the selected reports.

14.1.2 Export/Import Reports Option

In the example below, we are presuming that your VIP Directory is on Drive C. The

Export/Import Reports option is found under Reports on the Main Menu.

The Import and Export Reports screen will be displayed.

Complete the following information:

Click on the Radio button next to Interface file, as you will import the Reports from your C

Drive.

14.0 Reports and Report Writer Codes

(Classic/Premier)


Enter the required Drive letter, e.g. C.

Then complete the following information:

Click on the Radio button next to Company

Select all the applicable companies to where the new reports must be imported, from the

Company Selection Screen, in this example only Company 900.

Click on Continue.

You will be prompted to enter the Real Number of the Report, e.g. 630.

Enter the Real Number and click on Continue.

The Status of the Imported Report will be shown on screen.

Click on Continue and enter the Real Number of the next Report to be imported.

14.2 New Standard Reports

The following Standard Reports need to be imported.

14.2.1 RSA Users (Classic/Premier)

Report Real Number Report Name

767 ETI Validation Report

14.3 Changed Standard Reports (Classic/Premier)

The following Standard Report has been amended and will need to be imported. Overwrite

existing Report.

14.3.1 All Users (Classic/Premier)

Report Real Number Report Name

552 Personal Information


14.4 RG Codes

14.4.1 All Users (Classic/Premier)

These RG Codes are found under the Employee Information group on the RG Code look-up

list:

Code RG Code Label Length Description

27831 Work Country Cde 2 Work Address Country

Code link from the

Employee Address Screen

27832 Work AddrCountry 36 Work Address Country

Code Description


At certain times of the year, our support centres experience extremely high call volumes. To

assist you, as a customer, in finding answers to your questions without having to wait for the

assistance of a Consultant, we have added a Support <Lifeline> button at the top of the

Company Selection Screen.

When you click on <Lifeline > you will be redirected to an online Knowledge Base with

various ‘How To’ documents that can assist you, step-by-step, to solve the most frequently

asked questions.

There will also be buttons at the bottom of the screen that, when you click on them, will

redirect you to information relating to the specific period of the year you are working in e.g.

‘How to make a copy system’ at Tax Year End.

Please Note: Your Site Code and licensing information is validated against our CRM

Database. If for any reason this information does not correlate, you will need to logon to

the Customer Zone and will not be taken directly to the Knowledge Base.

15.0 Support Lifeline (Classic/Premier)


The following issues have been resolved in this release and the requests listed here have

been implemented.

Summary/Area Description

Employee IS screen Work Address Country Code will now default to ZA in all RSA

companies when a New Employee is added.

RSA UIF Submission When printing the UIF Submissions Report, you got a Status 23

error on VPCNT000.pay.

Support Help Email Wording on the Support help email is changed to guide client in

supplying more information.

Referral Email

Updated with latest information on referral commission and

competition. Also allow the user to indicate the product required

by the referral company.

System Rebuild Now includes the VPAPIxxx.PAY file in the rebuild process.

Status 94.10

When a user got a Status 94.10 error on the Employee IS

Screen, the message incorrectly referred to the ETIWAGE.PAY

file and not the VPEWG.PAY file.

SEZ Code

A new message, giving more information, has been added to

the System Descriptions > ETI Codes about the use of the SEZ

Code.

Basic Company – Setup

of ETI Wage

Components

When the user selects XS Screen line items to indicate where

the Wage Rate Per Hour is, the changes made to the Wage

Rate did not save when you exited the screen.

Employee Medical

History Screen

If the Medical Aid Start Date is after the Employee Date

Engaged and you enter backdated beneficiaries in January and

February 2017, the system incorrectly calculated the Medical

Aid Rebate according to the Periods in Service instead of using

the periods contributed towards Medical Aid.

16.0 Items Resolved / Requests Implented

(Classic/Premier)


Personal Information

Report (RN 552) Incorrect page breaks are now corrected.

NBCRFI Export When doing the NBCRFI Export, the last column did not fit onto

the page. This has been resolved and all columns will now print.

RSA Equity Report Corrected a spelling mistake on the merged document.

RSA Equity Report

If the Previous Period Date is used, the Workforce Profile

printed information for the Current Period, with the result that

the counts on the Workforce Profile differed from the counts on

the Income Differential.

RSA Equity Report Numerical targets did not reflect values for Disabled employees

on the Word Document.

RSA Equity Report

If the user included Multiple Companies and the same

Employee Code is used in more than one company and the

Employee Level and Info is different in the 2 companies, the

user had to print separate reports. The 2 employees will now be

counted correctly.

Delete Employee & ETI

history

ETI History does not delete when deleting an Employee. If a

new Employee is then added, using the old Employee’s Code,

all the old ETI transactions are reflected on the new Employee.

List/Query Various

Numbers

Password settings on the PDF Printing Setup Screen were

ignored when users printed this report.

Start of New Tax Year

When a Weekly company is rolled-over at the end of the Tax

Year, a calendar displays, allowing the user to select the new

Tax Year End Date. Depending on the selection, the system will

determine whether it is a 53 or 52 week Tax Year. If the client

did not make a selection and just entered on <Continue>, the

system took the selection as 53 weeks and did not confirm with

if it is ok with a message. The default will now be 52 weeks.

When the client prints the Support Letter on the Initial Entry

Screen when a company has 53 or 27 periods in the Tax Year,

the Support Letter reflects either 52 or 26, instead of the 53 or

27 periods.

IRP5 Tax Certificates

IRP5 codes for Medical Tax Credit (4116 and 4120) is not

printing on the Tax Certificates

If you do not print the Secure Certificates the Company Name is

not printing on the Payroll Tax Certificate. The correct

information is however exporting in the IRP5 file.


IRP5 Tax Certificates

for ESS and InfoSlips

The information is not aligning with the templates in use.

Tax too high in

February

If the company is on Release 4.7d and the Employee is on

Normal Tax, then the system is doing the Final Tax Calculation

with the wrong Tax Deductible value. It only uses the Current

Period Tax Deductible value and not the YTD values.


If you have converted your Companies from Release 4.7a, you will also have all the features

added in Release 4.7b, 4.7c and 4.7d.

Please consult the specific Release Notes for more details.

DISCLAIMER

Although care has been taken with the preparation of this document, Sage HR & Payroll makes no warranties or

representations as to the suitability or quality of the documentation or its fitness for any purpose and the client uses this

information entirely at own risk.

COPYRIGHT NOTICE

© Copyright 2016 by Sage HR and Payroll, a division of Sage South Africa (Pty) Ltd hereinafter referred to as “Sage HR &

Payroll”, under the Copyright Law of the Republic of South Africa. No part of this publication may be reproduced in any form or

by any means without the express permission in writing from Sage HR & Payroll.

17.0 Items Included from Previous System

Enhancements (Classic/Premier)

release notes 48a - sage south africamailers.sagesouthafrica.co.za/.../releasenotes48a.pdf · 3.1...

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