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Sage Pastel Payroll HR Advantage

I’m sure you will all agree when I say that one should never underestimate the power of being organised. Especially when it comes to your company’s Payroll and HR. Enter Sage Pastel Payroll HR Advantage.  The ability to create more time whilst sustaining a constant state of order is a superpower we all long for in the workplace. If mastered and maintained, it tends to carry over into other areas of our lives.

Sage Pastel Payroll HR Advantage CloudThe new Sage Pastel Payroll  HR Advantage package caters for exactly that and then some. Its array of new features and functions empowers the user to uphold a refreshing standard of organisation. It also saves loads of processing time whilst effortlessly keeping your legislative ducks in a row.

You’re missing out if you haven’t witnessed the benefits that this new package has to offer. It’s the same Pastel Payroll we all know so well. Only now with the addition of 7 powerful user friendly modules designed to make Payroll & HR processing that much more efficient and compliant.

Sage Pastel Payroll HR Advantage Modules include:

Sage Pastel Payroll HR Advantage Self Service

Self Service

A cloud based portal giving your employees the ability to access their secure online profile. They can submit travel claims, manage leave, make changes to personal details.They can reprint payslips. The administrator can customize approval workflows to suit the company’s requirements which will then be synchronised to the desktop. All this will reducing the processing load considerably.

HR

A module is suitable for any size and type of business. This easy-to-use desktop HR System is the perfect administration tool for human resource managers. It boasts uncomplicated functions such as company asset allocations, performance review processing, and the recording of employee training and education just to name a few. Disciplinary’s are also made easy as the system keeps track of all disciplinary actions enabling the administrator to remain CCMA compliant.

Sage Pastel Payroll HR Advantage Salary Salary Structuring

If you’ve ever had the frustrating and time consuming task of playing around with an employee’s basic salary only to reach a desired net, then you’ll love Salary Structuring. Its Ideal for those complicated salary setups as well as dummy payslips. You can calculate a net to gross or total cost to company remuneration package with ease.

Multiple Transaction Manager

A global update tool which enables you to process multiple employees at once. All done on one screen without having to hop from payslip to payslip. You can apply salary increases and process leave across the board at the click of a button.

Sage Pastel Payroll HR Advantage EfficientThird Party Transfers

Eliminate the possibility of human error when paying over employee and employer contributions to third parties such as medical aid and garnishee orders. This module allows the user to generate a problem free CSV file which is then imported into the company’s online banking,

Bulk Terminations & Reinstatement’s

A module which makes it easy to dismiss or re-employ multiple employees at once. It is especially useful if you employ seasonal or project-based employees. 

Consolidated Reports

You now have the option to consolidate the EMP201, EMP501 and Irp5 electronic certificates from multiple companies. It alleviates the tedious task of combining figures when submitting your SARS returns.

Employment Tax Incentive ETI 2017

So, can Employment Tax Incentive ETI still be claimed after 31 December 2016 and is it still valid in 2017? We have been following up with SARS to ensure we are up to date on this matter at all times. We have been advised that the review process is still in progress. Thus, Employment Tax Incentive ETI is still valid and should be applied in 2017 until further notice.

Employment Tax Incentive (ETI) was implemented with effect from 1 January 2014. Companies have been able to claim ETI for all of their qualifying employees. There have been many questions and uncertainties from various Employers, whereby some don’t completely understand how it gets calculated and this led to certain employers feeling anxious about the effect it might have on their Pay-As-You-Earn (PAYE) and their annual returns in the near future.

To add to this uncertainty, the incentive’s effectiveness was to be reviewed to determine whether to incentive (scheduled to end of 31 December 2016) will continue or not. The Employment Tax Incentive Act, Act No. 26 of 2013 also mentions that the incentive ends on 31 December 2016 – “an employer may not receive the employment tax incentive from 1 January 2017”.

Below is a short summary focusing on the main aspects of ETI followed by the calculations :

Should you have any further questions regarding the above, please feel free to contact us on 021 447 9565 or send us a email on payrollsupport@e2e.co.za and we will give you a call to assist.

What is Employment Tax Incentive ETI:

  • In short, the Employment Tax Incentive (ETI) was implemented to encourage employers to employ “young workers”.

Some of the benefits include :

  • Improving the skills and experience of young South Africans whilst also improving the high unemployment rate in our country.
  • Reducing the employers PAYE amount due to SARS on a monthly basis, with the incentive allowing the employer to reduce the Total Gross PAYE on their EMP201 with the combined ETI total calculated for all qualifying employees.
  • Employers can claim the incentive for all qualifying employees for a 24 month period.
  • Employees’ wages unaffected while the employer can reduce the companies PAYE liability.

Qualifying Employees :

  • Employee has a valid SA ID, Asylum Seeker permit or ID in terms of Refugee Act
  • 18 – 29 years old
  • NOT a domestic worker
  • Employee is not a Connected Person to Employer
  • “A connected person or relative means your spouse or anybody related to you or your spouse by blood in the third degree (e.g. great great grandfather etc.), and any spouse of these persons.”
  • Employed ON or AFTER 1 October 2013
  • Paid a wage of at least R2000 and not more than R6000
  • Where employee was employed for 160 hours in a month

Qualifying Employers :

  • Registered for Employees Tax (PAYE)
  • Is not a municipal entity
  • Is not in national, provincial or local government sphere
  • Not a public entity listed in Schedule 2 or 3 of the Public Finance Management Act
  • Not disqualified by the Minister of Finance due to the displacement of an employee or by not meeting the conditions as may be prescribed by the Minister by regulation.

Employment Tax Incentive ETI Calculations :

Some Employers might have experienced certain ETI errors when submitting their Employer Reconciliation Declaration (EMP501) due to certain validation rules.

It is crucial to ensure that your ETI has been setup correctly on your Payroll software, and that the calculations are accurate and correct. For more information regarding the setup on your Payroll please contact us on the details provided.

Below is a summary on how ETI is calculated based on the different formulas :

  • For the first twelve months of employment :

 

Remuneration Tax % RebateTax Rebate Amount
R0 – R200050%R 0 – R999.9
R2001 – R4000FixedR1000
R4001 – R6000Formula X = A –(B x (C-D)) X = tax rebate A = R1000 B = 0,5 C = Monthly Remuneration D = R4000R 0 – R999.9
  • For the For the second twelve months of employment :

 

RemunerationTax % RebateTax Rebate Amount
R0 – R200025%R 0 – R499.9
R2001 – R4000FixedR500
R4001 – R6000Formula X = A –(B x (C-D)) X = tax rebate A = R500 B = 0,25 C = Monthly Remuneration D = R4000R 0 – R499.9

We would like to ensure all of our clients that we will continuously monitor and provide updates with regards to the review process and possible “cut-off” date in which you are able to still claim ETI.

Regards

Anton

Sage Pastel Clients: SARS Personal Tax Season is Open

Dear E2E Followers,

We want to wish you all the best and plenty of returns on your hard earned and deducted PAYE. The deadline dates for your convenience:

  • Manual or postal submissions : 30 September 2015
  • E-filing submissions : 27 November 2015
  • @ a SARS Branch : 27 November 2015
  • E-filing for provisional tax payers : 29 January 2016

We would like to hear from you on your 2015 Personal Tax submission experience. Are you the early bird in submitting your Personal Tax Return to SARS for that much wanted winter refund? Contact me directly: Francois@e2e.co.za

You can now be Tax Smart with SARS’ Top Tax Tips:

Tax Tip #1: Don’t file a tax return if you don’t need to

You don’t need to file if your total salary earned during 1 March 2014 – 28 February 2015 for the 2015 tax year is not more than R350 000 (before tax), provided:

  • You only have one employer (but remember if you have two employers or income sources e.g. late spouse / partner pension income, exam markings income, moonlighting income etc you do need to file even if the total is still under R350 000) or
  • You have no car allowance or other income (e.g. interest or rent) or
  • You are not claiming tax related deductions (e.g. medical expenses, retirement etc) or
  • You received interest from a source in South Africa not exceeding –
    • R23 800 if you are below the age of 65 years; or
    • R34 500 if you aged 65 years or older or
  • Dividends were paid to you and you were a non-resident during the 2015 year of assessment.

If you are still unsure if you need to file a tax return, click here.

Top tip: Trusts are required to submit an annual Income Tax Return (IT12TR), as well.

Tax Tip #2: Looking for your tax number?

Your income tax reference number is a unique 10-digit number issued by SARS to a taxpayer on registration.

If you are registered, you can find your tax number on your:

  • Notice of registration from SARS
  • Employee Tax Certificate (IRP5/IT3(a))
  • Income Tax Workpage on eFiling, if you’re a registered eFiler.

Top tip: What else to do if you need your tax number?

Tax Tip #3: No login details. No problem

Forgot your eFiling username and password? Follow these easy steps:

  • Visit www.sarsefiling.co.za
  • Click on Login
  • Click on the question mark icon
  • Request your login details
  • We’ll send it to your SARS registered email address or cellphone number

Still stuck? Call us on 0800 00 7277 or get more tips here if you have forgotten your eFiling login details.

Top tip: If you’re not registered yet for eFiling, follow our simple and easy steps to register.

Tax Tip #4: Make accurate claims

To avoid penalties, make sure you have the correct documentation and proof for every claim you make.

  • Only use info and figures that reflect on your supporting documents
  • Use ONLY the amounts reflected on your contribution certificates from your retirement annuity fund, income protection scheme, medical aid etc.
  • Make sure you keep an accurate logbook and do not fabricate kilometres travelled
  • Don’t inflate the value of your vehicle.

Tax Tip #5: Don’t lie on your tax return

Overstating the number of dependants or expenses for medical claims is a criminal offence.

  • Only claim for the actual number of dependants registered on your medical aid
  • Don’t overstate your out-of-pocket medical expenses because SARS will ask for your receipts
  • Medication that has not been prescribed may not be claimed for.

For more info on Medical rebates, click here.

Tax Tip #6: Don’t hide it. We’ll find it!

We are closing in on undeclared income and overstated expenses.

  • Declare all income you received during the year of assessment like rent, interest and income from your part-time job
  • If a deduction does not exist – do not claim for it!

Tax Tip #7: Be prepared

Have the applicable documents on hand to complete your tax return, such as:

  • IRP5 or IT3(a) certifcates from your employer or pension fund
  • Financial statements (e.g. business income)
  • Medical aid certificates and receipts
  • Retirement annuity fund contribution certificates
  • Tax certificates for investment income (IT3(b))
  • Completed confirmation of diagnosis of disability form (ITR-DD)
  • Information relating to capital gain transactions
  • Travel logbook

Remember, if you’re filing at a SARS branch you must bring all the listed documents applicable to you, plus original proof of identity (ID, temporary ID, passport or driver’s licence).

Tax Tip #8: Don’t fall for scams

Don’t be fooled by emails asking for your personal info

  • SARS will never request your banking details or personal details in any communication that you receive by post, email, phone or SMS
  • SARS will also not send you any hyperlinks to other websites – even those of banks
  • There are no links to any bank on this website.

Tax Tip #9: Be ‘tax smart’ and eFile

eFiling is the quickest and easiest wayto submit your return

  • Visit eFiling to register and submit your return online
  • If you’re an eFiler download the eFiling app and submit your return via your smartphone or tablet
  • Need help? Click on the Help-You-eFile icon on eFiling (when filing from your computer) and follow the prompts to get access to a friendly SARS Contact Centre agent.

Need help?

How to Submit your EMP201 – Revised August 2014

The EMP201 was revised and came into effect in August 2014. New SARS ETI fields were added. Not to worry, I have a plan to get you back on your way to EMP201 Victory!

After recently receiving a number of frantic phone calls with the intro line: “I cannot submit my EMP201” and not knowing what I might have missed, I started at once to read through the SARS Interim Audits and drawing reports on SARS EMP201. I got quite a fright as I realised all the PAYE, ETI, SDL, UIF fields on the EMP201’s have been moved around again!

Step 1. Relax, we’ll get you back on track.

Step 2. Follow the instructions below. Each letter (A – N) is displayed on the picture below.

Step 3. No decimal separators can be used and always fill up the cent value with noughts when completing values.

SARS eFiling EMP201

A            Enter PAYE Amount from current month Payroll Totals

B             Enter SDL Amount from current month Payroll Totals

C             Enter UIF Amount from current month Payroll Totals

D             Auto calculated by SARS eFiling

E              Complete ETI brought forward from previous month. IF NONE, COMPLETE WITH 0 VALUE

F              Enter valid ETI amount calculated from current month Payroll Totals.

G             ETI Utilized = Basic Math, YOU will need to add sum of E and F and enter here

H             Auto calculated by SARS eFiling

I               Auto calculated by SARS eFiling > (Sum of A – G)

J              Auto calculated by SARS eFiling > Value of B

K             Auto calculated by SARS eFiling > Value of C

L              Enter Penalty and interest if and when applicable.

M            Auto calculated by SARS eFiling > Sum of I +J + K + L (Total Amount Payable to SARS)

N             Period of Assessment

Remember to complete the ETI and VDP Check boxes at the bottom!

If you have any questions please comment below.

For Payroll Software and Payroll related services complete our Contact Us form.

Happy Filing!

Fraswa

SARS Personal Income Tax Return Deadlines Approaching

Have you submitted your Personal Tax returns or received confirmation from the Auditors that your Provisional Tax return or Personal Tax ITR12 – IRP5 has been submitted successfully?

Had to Pay in this Year??

How much did YOU get back?

Do you Travel for Business?

Did YOU Keep a Travel Log Book?

Keep an eye on our Blog as I will be giving you pivotal advice that I find is not being addressed sufficiently and Individuals are bearing the brunt.

Is your Income Structured Correct in terms of SARS Acts?

E-mail me if you are not 100% certain: Francois@e2e.co.za

For now, Take note of the pertinent deadlines for personal tax submissions.

Provisional Tax and Payments                                    – 29 August 2014

Personal Tax Season (Manual Submissions)        – 26 September 2014

Personal Tax Season (Efiling Submissions)            – 21 November 2014

Be On Time!!

Be On Time!!

SARS Tax Year End 2014 Deadline

The time is fast approaching to reconcile your Payroll for 2014! In order to comply with the latest SARS updates, I’m writing this to remind you to get your Payroll audited and submitted timeously.

Failure to do so WILL result in follow-up e-mails, phone calls from SARS and the possible declining of a Tax Clearance Certificate.

If you need your Payroll done professionally, including ETI, format changes, SARS source code income and deduction changes or if you just need help gathering those missing income tax numbers, send me a mail, I’ll be happy to help!

Francois@e2e.co.za

SARS, SARS deadline, Payroll, Partner Payroll, Payroll support

Tax Year End 2014 Submission Season NOW OPEN

When can I expect to receive my IRP5?

This is a question numerous employees are directing to the finance department and Payroll administrators. The correct retort to these employees requests is to inform them that the company is processing tax audits and submissions that are only due now. The personal income tax filing season for non-provisional tax payers will only commence on 1st July 2014. Tax Certificates (IRP5 or IT3(a)’s) will be made available in due course post successful submission and acceptance by SARS.

This year again, as we’ve seen with past years, there are numerous changes to required and additional fields that companies need to conform to and update records.

Here are some of the changes: you can expect:

Courtesy of SARS (www.sars.gov.za)

  • Revised Employee Postal Address Format.
    • Click here for example of new format.
  • Employer Tax Incentive (ETI) field required on EMP501 and Tax Certificates
    • Click here for a complete listing from SARS.

These updates need to be done ASAP, especially for larger companies since these requirements are on an individual employee basis, the task can be rather labour intensive.

We’ve already started with the Re Cons and conversions. Don’t be caught out by waiting.

Contact us and we can take the load off for you by managing and submitting the EMP501 Declaration correctly, timeously and professionally. Your Tax Clearance Certificate or SARS Good Standing is depending on it.

Francois@e2e.co.za

Deadline for Submissions – 30 May 2014

This is not an April Fools Joke

Tax-Time

How to Register Employees for Income Tax in 5 Easy Steps

Income Tax Numbers have become as important as ID or passport numbers in your Sage Pastel Payroll. When hiring a new employee, whether foreign or local, independent contractor or freelancer, permanent or temporary, PAYE Employee or below the income tax threshold – if you pay them, they need to be registered in your Sage Pastel Payroll.

While it is likely that an employee will already be registered for income tax from their previous employer’s EMP501/IRP5/IT3(a)submission, when this is not the case, the responsibility falls on the employer to register the employee for income tax with SARS.

Fortunately, SARS e-filing assists in bulk registering all employees not previously registered for income tax numbers. You can now register employees online using your company SARS e-filing profile.

How to register employees using SARS e-filing:

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If you get the message “Individual Already Registered” when trying to register or in the case of an employee not knowing their income tax number, the employee should simply phone the SARS call centre on 0800 00 7277 who, upon verification of personal particulars on record, will then furnish the individual with their income tax number.

It is important to note that the employer cannot phone SARS and request any Employees’ Income Tax number.

I hope this serves both as advice to all employers to get their employees registered and also as an aid in doing so!

Remember, for any advice or Sage Pastel Payroll queries, simply contact Francois for immediate support.

francois@e2e.co.za