COPYRIGHT. Vanilla Payroll Copyright

Transcription

1 COPYRIGHT Vanilla Payroll Copyright Please read the terms of this Agreement carefully. You signify acceptance of the terms of this agreement by using this software. If you DO NOT AGREE with these terms, you should return the complete package for a refund. SINGLE USER LICENCE Vanilla Payroll grants you a SINGLE USER licence to use this software on one stand alone computer. Simultaneous use by more than one operator / user at a time, or installed on more than one computer is NOT PERMITTED under this agreement. No part of this program material may be distributed, reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, natural or computer, in any form or by any means, without the prior written permission of Vanilla Payroll. Information contained in this software and printed material is subject to change without notice and does not represent a commitment on the part of Vanilla Payroll. Vanilla Payroll makes no warrantees, either expressed or implied, regarding the program or the results given by the program. You assume responsibility for the use of the program, and the result thereof, which means the copyright holder, shall not be held liable for any errors or legal damages arising from the furnishing, performance, or use of the program. Vanilla Payroll could include technical inaccuracies or typographical errors. Changes are periodically made to the information herein; these may be incorporated in new editions of the product. Vanilla Payroll CK 2009/024025/23 P.O. Box 446 Gonubie Main Road Gonubie East London 5257 T: F: E: info@vanillapayroll.com W: 1

2 ABOUT VANILLA PAYROLL Vanilla Payroll is here to simplify the ever increasing complexity of payroll. It does this by creating the necessary documentation required by law as far as record keeping and dealing with UIF, SARS and SDL. Few people know that comprehensive payroll records should be kept for at least five years. It is our aim through either printed material (this manual) and/or visual aid in the program s help file, to ensure that very little experience would be needed to process your own Vanilla Payroll. HOW TO USE THIS BOOK TO SIMPLIFY THE WORK YOU DO The manual is set out in order according to the Getting Started and Payroll Procedures Check List. There will also be hints and tips that are more inclined to help with things that happen in payroll and how to deal with them than the system itself. Most of the fields to be completed have descriptions which are self explanatory. For those people with little experience in running a payroll there are tool tips, which you will encounter by moving your mouse across a field and the help file which gives you information on specific topics. The following icons have also bee placed in the program to make your task easier: Search for an employee Select from a list More information Select a date from the calendar Also the buttons below allow a smooth transition through the system: 2

3 VANILLA PAYROLL USER GUIDE CONTENTS PAGE REGISTERING VANILLA PAYROLL 5 NETWORK LICENCING OF SOFTWARE WHEN WHERE HOW 6 UPDATING TO THE LATEST VERSION 7 BACKUP & RESTORE DATA 8 PAYROLL TERMINOLOGY AND DEFINITIONS 11 GETTING STARTED WITH VANILLA PAYROLL 12 ADDING THE ADMINISTRATOR 13 ADDING AN EMPLOYER 14 SETTING UP OVERTIME RATES, PUBLIC HOLIDAYS, OTHER DEDUCTIONS, BANKS, COST CENTRES & REPORTS 16 SELECTING AN EMPLOYER 17 SORT/SEARCH FUNCTIONS 18 ADDING AN EMPLOYEE Personal Record Payslip Profile Leave Record 18 YEAR-TO-DATE TOTALS 32 THE UTILITY TOOLBAR EXPLAINED 33 PAYROLL PROCEDURE CHECKLIST 34 EDITING EMPLOYEE INFORMATION 35 3

4 CONTENTS / continued UPDATING LOANS & BONUS, OVERTIME & LEAVE 35 TERMINATING AN EMPLOYEE 41 PROCESSING PAYSLIPS 42 LEAVE PAYSLIPS OVER MORE THAN ONE PERIOD 44 PROCESSING & PRINTING INDIVIDUAL & BATCH PAYSLIPS 45 ROLLBACK 50 REPORTS 50 CREATING / ING UIF ELECTRONIC SUBMISSION TO DEPT. OF LABOUR 53 TRANSFERING STATUS OF EMPLOYEE 54 TAX YEAR END PROCEDURES 55 GETTING STARTED WITH THE NEW TAX YEAR 62 Vanilla Payroll CC T: F: info@vanillapayroll.com 4

5 ! REGISTERING VANILLA PAYROLL Once installed, Vanilla Payroll will be placed into your list of Programs. You can now find Vanilla Payroll by clicking on Start, All Programs or by finding and clicking on the icon on your desktop. The introductory screen will now appear: Click on the Register Vanilla Payroll button The information contained on the registration document is added to our client database. We would appreciate it if you would let us know of any address, contact name or address changes that occur after the initial registration for our records. Complete the details that now appear in the registration screen, as per example below. When filling out the required information, please be aware of the product levels and select the correct option (Step 2). Also be careful when selecting the option of first purchase or update as this affects the pro forma invoice value and the code which needs to be produced (Step 3). 5

6 ! NETWORK LICENCING OF SOFTWARE WHEN WHERE HOW WHEN DO I UPGRADE? Upgrading your software to the next level may be necessary for the following reasons: To add additional concurrent users for your network (multi-user) To add additional companies (employers) You may have exceeded the number of employee s on your current licence Remember that terminated employees are counted within a tax year as the system is storing these employees data for tax year end procedures. Fortunately upgrading is relatively inexpensive as you pay only the difference between the current level and the new level after one year of using our payroll. WHERE DO I UPGRADE? On opening the payroll, click on Upgrade OR From within the payroll you can select the Upgrade icon found at the top right of the payroll screen OR From within the payroll from the grey menu bar, select Network & Database Limits and then Upgrade Vanilla Payroll HOW DO I UPGRADE? Once you have selected the upgrade option as detailed above follow the steps 1-5 on the upgrade form. We will contact you with a new registration number once we have received your fax and payment for the requested upgrade. Click on the update code button and enter the code (registration number). Please note: The registration code is only valid for 7 days 6

7 ! UPDATING TO THE LATEST VERSION We are consistently striving to bring you new features which are added during the year. It is important to keep the system up to date to ensure you have access to these valuable new benefits. You can check your version on the opening screen. Updates are available via our webpage, alternatively contact us by phone and we will send you the latest version on CD. The update never overwrites your existing database. If you go into the payroll after you have updated and you are asked to register or other problems occur, please contact our help desk or local dealer with all the relevant information on hand. Note: It is essential to backup your data files before installing a new version to your hard drive! We have added an automatic update feature to our payroll which connects to our website if your terminal has access to an ISDN line and will prompt you when a new update is available for download. If you have to physically dial up for internet access then please ensure that you check regularly for any updates available on our website by doing either of the following two methods to run the update facility: Without having to load Vanilla Payroll: Click on Start (bottom left hand corner of your screen) Select Programs, Vanilla Select the specific year you wish to upgrade (Example Vanilla Payroll 2010) Select Check web for updates OR Select Help from within Vanilla Payroll Select Check web for updates The following screen now appears and this is the same screen which prompts you should you have a permanent internet connection. Select YES to update Click on OK once complete 7

8 ! BACKING UP DATA The data files should be backed-up after each completed pay period, i.e. each week / fortnight / month. Backing up your data file is as important as paying your insurance. It doesn t seem necessary until something goes wrong. In this case a virus, corrupted files or failure of your hard drive could mean losing your payroll information for the entire year. It is recommended that the backup be copied to CD or removable disk, preferably a format that can be taken off site in case of fire or theft. It is not unrealistic to expect that your computer and the stored information could be stolen. To start the backup/restore procedures follow these instructions 1. Close Vanilla Payroll. 2. Double click the Backup & Restore icon. 3. Click Yes if you see a message that states: Do you want to create cfg.tps? 4. Select Backup Payroll Data from the menu of the second screen. 5. You should now see the screen below. You may have to click Other Drive First 6. A default File name will be created for you which contains your administrator name, the payroll version, the date and the time of the backup. This will make it easier for you to identify old backups when restoring. Please do not use the word Auto at the end of the filename as that is reserved for automatic backups. 7. Backups are saved in a folder called Backups. You can change the folder that the backup will be saved to by clicking the button to the right of the Path as shown above. 8. If you are satisfied with the settings, click the Start button to proceed. 9. Click the Continue button on the next screen to create your backup. 8

9 ! RESTORE PAYROLL DATA 1. Close Vanilla Payroll. 2. Double click the Backup & Restore icon. 3. Click Yes if you see a message that states: Do you want to create cfg.tps? 4. Select Restore Vanilla Payroll Data 5. You should now see the screen below. You may have to click on Other Drive first. 6. You are now required to select a file to restore. Click the button to the far right of the Filename. You should then see a screen similar to the one shown below: 7. Select the backup file that you want to restore and click the Open button. You may also select from Automatic backups which have the word Auto at the end of the filename. Note the date and time in the backup filename before restoring. 8. You will then be returned to the screen below. The path may have changed to suit the location that you are restoring from: 9

10 9. Click the Start button to continue 10. You may receive the warning screen below if you are restoring an old backup. You may click the OK button if you are absolutely sure that you are restoring the correct file. 11. If you receive the above warning, it is usually followed by the screen below. If the backup you are restoring is the most recent backup then click the Yes button. If you are restoring an old backup, then click the No button. When the backup has completed, you will receive a message asking if the restore was successful. Click the Yes button 10

11 ! PAYROLL TERMINOLOGY AND DEFINITIONS YTD TOTALS (YEAR TO DATE TOTALS) YTD Totals in the payroll contest means: The addition of the different incomes and deduction from March of the current tax year to the last calculated payroll. This information is used when changing from one payroll processing method to another during a tax year. It allows the user to update the new system with the information it needs to accurately apply the correct tax deductions RFI (RETIREMENT FUNDING INCOME) Retirement Funding Income is the addition of all incomes which are used to calculate pension or provident fund. (E.G. If an employee has a Pension or Provident Fund that is based upon their income, then the RFI indicator, for this income should be ticked) NRFI (NON RETIREMENT FUNDING INCOME) Non Retirement Funding Income is income which is not used in the calculation of pension or provident fund. Overtime is normally an example of NRFI. This type of income is used in determining the tax deductibility of retirement annuity. SDL (SKILLS DEVELOPMENT LEVY) Skills development levy is a company cost based on 1% of the employee s taxable income excluding certain types of employees. Certain companies, such as government institutions and non profit organisations, can apply for exemption. As from 1 August 2005 companies with a remuneration/leviable amount which do not exceed R per annum are exempt from the payment of SDL (Refer Notice to Employers 3/2005 on SARS Website) UIF (UNEMPLOYMENT INSURANCE FUND) All employees, including directors and provisional tax payers, are liable to pay 1% of their taxable earnings to a maximum determined by the Dept. of Labour. Certain types of income such as commission only earners are excluded from the calculation. Learners, pensioners & government employees are exempt from paying UIF. The employer has two different responsibilities regarding UIF. The first is the payment to SARS. The second is giving details to the Dept. of Labour in Pretoria. They capture information, about the employees who pay UIF and their contributions, to a central computer system. Vanilla Payroll makes it easy to complete both tasks. The payment is included on the EMP201 monthly report and the system generates an electronic submission file which prompts the user to the file to declaration@uif.gov.za at the same time. See the section about e-uif which is detailed later in this manual. 11

12 ! GETTING STARTED WITH VANILLA PAYROLL GETTING STARTED IN 6 EASY STEPS Set up the Administrator s details Set up the Employer details Choose set up on the utility toolbar and set up the relevant screens Add your Employee s details and payslip profile Add YTD information from the previous system if starting during a tax year Follow the above steps as an easy guide to getting your system up and running. These steps will take you through the setting up of the employer and employee s records which are needed for year end reporting and creating the employee payslip information. If you have been using a manual system prior to purchasing Vanilla Payroll, we recommend that you summarise the year to date income and deductions, by SARS code, for each employee and add these totals into the system before processing the first payslips. This does take a little more effort but allows you to run the tax certificates at the year end for the entire year. 12

13 ! ADDING THE ADMINISTRATOR The administrator is the organisation responsible for processing the payroll. This could be the same as the employer or different in the case of a bureau service. The Edit Administrator screen now appears. Fill in the fields as shown in the example below. All fields marked with (*) an asterix are mandatory and must be completed correctly before continuing. Once you have added the Administrator, you can edit the details at any time by selecting Update Administrator from the toolbar at the very top of the screen: 13

14 ! ADDING THE EMPLOYER The employer is the company that employs the employees and is responsible for paying the remuneration and submitting the payment of PAYE, UIF & SDL to SARS. If you are a payroll bureau you will probably have more than one company to set up here. This screen appears after the administrator screen. Complete the following information: The employers full name as registered with SARS PAYE Registration number SARS registered UIF number Dept of Labour registered UIF number Indicate if the employer is except from SDL, if not enter the registered SDL number Internet with s, although not mandatory, are used when creating the electronic UIF file and if required, details of the person you would like to payslips to. Pension or Provident default contributions and the SARS required clearance numbers The banking details from which the salaries/wages are drawn The path and filename of the company logo which can be printed on reports to give an individual look. Tax paid to date for employers who begin using the system during a tax year and want to update tax figures already paid over. These amounts equal the total paid over for the employees according to the EMP201 and should balance to the figures on the initial take on report. The above figures will appear on the IRP501 report & EMP501 report. 14

15 SETUP OF PAYMENT FREQUENCIES Select the Pay Frequencies for the particular employer namely Daily, Weekly, Biweekly or Monthly by clicking in the tick box in front of each option. Note: When choosing Weekly or Biweekly additional information will be required: Weekly The first day of the beginning of the current tax year for weekly paid employees, this will not necessarily be the 1 st of March. It is the first day you would process payment for in that particular tax year. The number of weeks in the tax year. Due to leap years, occasionally the weekly tax period can be extended to 53 weeks as apposed to the usual 52 weeks. The tax year end date will be calculated based on the start date and the number of weeks Don t worry about entering in the Month end dates as indicated by Period The system will calculate these dates based on the start date and number of weeks in a tax year. Biweekly The first day of the beginning of the current tax year for biweekly paid employees, this will not necessarily be the 1 st of March. It is the first day you would process payment for in that particular tax year. The number of biweeks in the tax year, usually 26. The tax year end date will be calculated based on the start date and the number of weeks. Don t worry about entering in the Month end dates as indicated by Period The system will calculate these dates based on the start date and number of weeks in a tax year. 15

16 ! SETTING UP OVERTIME RATES, PUBLIC HOLIDAYS, OTHER DEDUCTIONS, BANKS, COST CENTRES & REPORTS COST CENTRE The cost centre tab allows you to group your employees into sections and allows reporting of these groups by selecting your reports by cost centre. PUBLIC HOLIDAYS Public Holidays are setup according to the government approved days each year. You can, as happens in business, substitute a holiday for another day and vice-versa. These days effect the calculation of leave due in the leave management screen. OVERTIME RATES The overtime rates section allows you to set up various overtime rates as required. It has Time and a half and Double time set up as a default. BANKS The bank details required here are the bank and branches details used by the employees for salary payments. OTHER DEDUCTIONS Other deductions allow you to set up a number of deduction types which can be used when creating the employee s deduction profile. COINS This is where you set up the denominations of notes you wish to use, for example if the highest denominates of notes you want is R50 then highlight the higher notes and select delete. Due to the fazing out of the 1 and 2 cent pieces, we have created the option to round your coins to the nearest 5 cent. A report detailing the rounding adjustment is available with the transfer remuneration report. LOAN TYPE As with other deductions, the loan section allows the user to set up the loan description for loans. PASSWORD If you would like a password on start-up of this company then you can setup your password via this screen. If a password has been set up in the employer s record, you can change the password or deactivate the password here. REPORT OPTIONS The system remembers the preferred options, saving the user time in selecting these again and again. The default settings to sort the report info either by employee name, employee number, cost centre/surname or cost centre/number. You can select a different print option when choosing reports from the report menu. One can default the number of copies for each report separately in order to minimise re-printing if more than one copy is required of a specific report. Payslip layout options are selected on this screen to either one/two employee(s) payslip per A4 page. select to print your payslip to confidential payslip on this screen. You can also 16

17 ! SELECTING AN EMPLOYER Now that you have entered the employers information, click on the required employer and then click on Select at the bottom of the screen: You will now see the screen listing all of the employees working for that employer: There are various filters to enable you to view only a specific group of staff, details of these on next page. 17

18 SORT/SEARCH FUNCTIONS: The FIND functions allows you to find a specific employee by surname without adjusting your sort The FILTER BY COST CENTRE will only display employees in a particular cost centre FILTER is to view only one of the 4 available Types of Pay Periods (e.g. Daily, Weekly, Biweekly, and Monthly). The default is set to All employees. SORT BY is to view the employees either by employee name or employee number.! ADDING AN EMPLOYEE Click on the add button on the main Toolbar to add an employee: Please select the nature of the employee as defined by SARS and then select the frequency if you have more than one payment frequency to add the employee to the correct daily, weekly, biweekly, monthly payroll. Click on OK to activate. This will take you to the Personal information tab where you must enter the employee s details. This information is available at any time to view or edit. 18

19 PERSONAL INFORMATION This section is divided into a number of categories, namely: Dates Employee Information Contact Information Payment Information Working Hours Banking Information Tax Information Notes The personal tab contains the personal details of the employee, which is required for processing of payslips and various reports (E.g. UIF declarations/ui19) Please ensure that you select each of these tabs individually and update employee details keeping in mind that fields marked with * are mandatory and must be completed before you can SAVE the data at the top left of the screen. NAME OF EMPLOYEE The nature or description of the person as set out by SARS. Most employees will either be A or B The surname, title, initials and names of the employee 19

20 DATES The employee s reference number or clock number if used. The company CC or trust number of the employee (this is only relevant if the nature of the employee is either D, E, H or K ). The date the employee was employed. The date the employee was terminated. This will be available to view for terminated employees. Employment status as defined in the Basic Conditions of Employment Act is used in the creation of the electronic submission of the UIF file. This would be active unless the employee is on maternity leave or on extended sick leave. The date the employee is due for appraisal, normally on anniversary date. EMPLOYEE INFORMATION The identity or passport number is mandatory if the nature of the person is an A The date of birth of the employee, from which their current age is calculated. The Temporary employee field should be ticked to indicate on the EMP201 that the employee falls under the temporary staff currently on the payroll. The name of the employee s spouse, if relevant. The number of dependants the employee has. This usually refers to dependant children. CONTACT INFORMATION The residential or postal address is mandatory information required for tax year end reporting The phone numbers of the employee including home, work, cell and spouse s contact numbers. The employee s internet and contact details (default to payslip to employee). 20

21 PAYMENT INFORMATION The payment frequency refers to the calculation frequency and the selection is made when adding a new employee. Choose a method of payment Click on the icon button on the right to select a cost centre if applicable. WORKING HOURS Tick the days of the week that the employee usually works. Enter the hours usually worked on each day The system will automatically calculate the number of Days per month as per days and hours setup. This information is used to calculate overtime and leave values, it is therefore important that this is accurate. BANKING INFORMATION Select Bank button allows you to set up new bank and branch details View Bank Details allows you to view the bank s details including telephone and fax numbers. Clear Bank will clear the existing bank details Choose the type of account that the bank details refers to. The account number the employee wishes to have their money transferred to. The employee s initials and surname are automatically brought through to the Account Holder field on entering the other bank details. This may be changed to accommodate an alternative persons details being used. Select whether the account relation is: Own Joing Third party 21

22 TAX INFORMATION The revenue office at which the employee is registered The tax reference number of the employee. Please note that this is a mandatory requirement as per SARS. The referred tax method. We recommend averaging for normal full time employees. The other options are: Part time (Tax at a rate of 25%) Directive percentage & Directive amount (Specific for employees who have special circumstances and have applied for a directive from SARS) Exempt (Specific for employees who have special circumstances and are exempt as per SARS) The Directive Number as issued by SARS for the current tax year. Reason for no tax deduction must be selected if the method is exempt. Use the down arrow on the right of the field to view the reason for exemption options. NOTES This is the equivalent to a blank piece of paper on which you may record important notes about the employee. For instance, it could be used to record a medical condition or disciplinary information. This information is carried forward from one year to another and does not reflect on the payslip. 22

23 PAYSLIP PROFILE This is where each employee s unique income and deduction profiles are created. The information on this tab determines what is carried through onto the payslip. This tab is divided into a number of sections listed below. Note: Pension Fund, Provident Fund, Retirement Fund and Medical Aid Fund are listed separately as you are required to enter additional information (e.g. Clearance Numbers as required by SARS) BASIC PAY Basic pay, as it is commonly known, is the cash component of an employee s package. If the calculation frequency is weekly or biweekly, the rate of pay can be hourly, daily or weekly. If the calculation frequency is Monthly the rate of pay can be all of the above as well as monthly. None or no income would be selected if the employee earned a commission only. Director s fees would be selected for remuneration for Directors. 23

24 PENSION FUND Pension can be set up based on a percentage of basic pay or an amount advised. If the default settings have been set up in the employers record these will automatically be pulled through once you have selected the add button. Once a pension fund has been set up, the system will check if the Retirement Funding Income indicator has been ticked for Basic pay, if not, it will be automatically ticked for you. PROVIDENT FUND Like the pension fund, the provident deduction can be based on a percentage of basic pay or an amount advised. Please note that you can add multiple entry s into the provident fund screen. You can also set up the provident fund default settings under the employer s record for easy update to each member record. RETIREMENT ANNUITY Retirement annuities are normally privately funded items, which are used by the system to calculate the tax reducing benefits, but do not show as actual deductions. The tax reducing benefit is determined by the amount of non-retirement funding income the employee has and whether or not the employee also contributes to a pension fund. The companies issuing these annuities are registered with SARS and they will be able to give you the required clearance number. 24

25 MEDICAL AID Contribution breakdown - Enter the full amount payable to the medical aid Employer Contribution / Percentage - Either enter the employer s contribution or employer percentage Employee Contribution / Percentage - Either enter the employee s contribution or employee percentage Adult dependants - Enter the amount of adult dependants (including the main member) Child dependants - Enter the amount of child dependants on the medical aid Note: The program will calculate the correct capped amount <4486> based on the amount of dependants setup. If the employer contribution is greater than the capped amount, the difference will be pulled onto the payslip and reflect under fringe benefit code <3810>. INCOME PAYSLIP The income profile holds the configuration of each employee s payslip profile. You can add a new income, edit an existing income or erase an income by clicking on the relevant buttons. It is not necessary to add the Basic Pay here as it is automatically brought through to the payslip from the Basic Pay set up. Click on the add button and the following screen appears. Choose the correct category from Normal Income; Allowances; Fringe benefits or Lump Sums. 25

26 Choose one of these to add an income by SARS category. Select the corresponding SARS code that matches the income to be paid. Each button will produce a list of SARS codes for you to choose from It is possible to add temporary or permanent income types here. You are able to change the description to suite your specific requirements. Enter the amount; indicate if temporary and save. If the temporary indicator is left un-ticked, the system will assume it is a permanent income. 26

27 DEDUCTION PROFILE The deduction profile screen contains the employee s unique deductions. You have the option to add, edit or erase a deduction. To add a new deduction description to your existing list, click on the add button to take you to your selection. Click on the add button here, input your description and save. To use one of the existing deductions on the list, highlight the one you wish to use and click on select. This will allow you to enter the value and a reference number or description if required. Also indicate here if it is a temporary deduction. If the temporary indicator is left un-ticked the system will assume it is permanent. You can also base the deduction on a percentage of the salary or a percentage of the package. NB* You need not add the employees pension, provident, retirement annuities, medical aid contributions, UIF or PAYE to this section. These deductions will occur automatically according to what you have set up in your employee s payslip profile. UIF is automatic and tax deducts according to your income level. 27

28 LEAVE RECORD This tab records the leave entitlement as well as giving a historical view of leave taken during the year. It is divided into the following leave types: Annual, Sick, Unpaid and Other. Annual Leave This is usually defined as the leave accumulated to an employee to cover the basic conditions of employment which states that an employee who is employed full time is entitled to 3 weeks consecutive leave per annum. This is usually accumulated on a weekly or monthly basis depending on the frequency of the payroll. For example, if an employee is entitled to 15 working days leave, the system would accumulate at a rate of 1.25 days per month or 0.29 days per week. The leave management is activated by entering the INITIAL TAKE ON LEAVE figures. This figure depends on whether you are starting at the beginning of a tax year or during the year. A new employee s take on leave will be zero as they would not have accumulated any leave yet and the entitlement will start accumulating once the first payslip is processed. If you are starting at the beginning of a tax year or if you are adding your YTD figures month by month the initial take on leave would be leave due to an employee at the end of February and the leave entitlement would be for the whole year. For example: If you add initial take on leave as 5 and entitlement as 15, once you have added a payslip it will show leave due as 7.5, which is leave due as at end of April. 28

29 To add leave taken and reduce the leave due, click on the add button at the bottom right of the leave screen. The following screen appears for you to enter your leave record: The default is set to CALCULATE NO OF DAYS which will look at the working days and public holiday info already setup to calculate the number of days. Select the start and end dates that the leave was/will be taken. The system automatically excludes any official public holidays. There is also the MANUAL ENTRY option, which allows you to over ride the number of leave days to deduct should you not agree with the auto calculation of days in the NUMBER OF DAYS field. There is an option to PAY OUT LEAVE ON NEXT PAYSLIP, which is activated by clicking the tick box in front of it. This appears as a payment on the next payslip using SARS code <3605>. You do not need to select this when terminating an employee via the termination screen as the leave due will automatically be activated to be paid on the final payslip processed ONLY via the termination screen. A historical record is available on screen and in a report format for the current tax year. It is therefore advisable to print the detailed leave report for the year. All outstanding balances are carried forward into the new tax year. 29

30 Sick Leave Sick leave does not have an annual accumulation per say. Set up the initial take on with your company s sick leave entitlement over 3 years. 36 days is the minimum entitlement according to the Basic Conditions of Employment Act. Leave entitlement is zero. This will allow you to use this screen for record keeping by reducing balance of days due as it is taken. You can enter your 3 year cycle date to keep track of when the cycle expires (i.e. cycle start is the employee s employment date or three years thereafter). Sick leave not taken by the end of the 3 year cycle is not carried forward. The new cycle starts with the maximum number of days. To add leave taken and reduce the leave due, click on the add button at the bottom right of the leave screen. Select the start and end dates that the leave was taken. The screen defaults to Calculate no. of days which will refer to the public holidays and days worked per week to calculate the number of sick days taken. You can override the number of days by selecting Manual Entry which will allow you to enter the number of leave days you wish to deduct. A historical record is available on screen and in a report format for the current tax year. It is therefore advisable to print the detailed leave report for the year at the end of each year. All outstanding balances are carried forward into the new tax year. Unpaid Leave This covers short time, absenteeism as well as approved un-paid leave. In a monthly payroll situation, entering unpaid leave, results in the system automatically calculating the value of this leave showing it on the payslip as a negative earning. The system is capable of calculating a portion of a day based on the number of hours entered. 30

31 To add leave taken, click on the add button at the bottom right of the leave screen. The default is Calculate No. of Days. Enter the description of leave. Select the start and end dates that the leave was/will be taken. You can calculate a fraction of a day based on hours absent/short by selecting Manual Entry and then click on the calculator next to the Number of Days Field to calculate the fraction via the following screen: A historical record is available on the unpaid leave screen and in a report format for the current tax year. It is therefore advisable to print the detailed leave report for the year. Current Leave Other leave records paid days away from work which are not annual or sick days. If an employee is on study leave, maternity leave or family responsibility, this is a quick and easy way to record this. 31

32 ! YEAR-TO-DATE TOTALS This feature has one main function. It allows the user to transfer the employee s incomes and deductions from the previous payroll system (manual or computerised) into Vanilla Payroll. The YTD figures can only be updated if no payslips have been added to the employee s records. It, therefore, usually forms part of the set up procedure of getting started. It is not necessary to do anything with this record if you are starting your payroll at the beginning of the tax year. To begin, click on the setup button to enter the pro-rata period worked from the beginning of the tax year to date. The program will automatically update the YTD information whenever a payslip is added, edited or rolled back. The following screen appears. Firstly you must set up the period for which this income is relevant. Enter the start and end dates of this period. Ensure the Periods Worked field is correct as this affects the tax calculation YTD. Click on the OK button to save this information. The best way of handling the YTD payroll data is to add the incomes from the previous periods by SARS codes. Click on the ADD button to add the YTD incomes, select the correct SARS code and enter the YTD value. Do the same for the deductions; ensure you use the ADD button under the deduction section. Finally, enter the total tax paid in the field provided at the bottom of the YTD screen. If there is a difference between the actual deduction and the calculated tax, the system will make an adjustment in the next period. When including Voluntary over deduction of tax, remember to add the entry under deductions as well as including the amount under the tax paid figure. 32

33 ! THE UTILITY TOOLBAR EXPLAINED Add allows you to add new employees Edit allows you to edit the information of an existing employee Erase will delete the record completely Terminate will end the employment of the employee and allows you to process an IRP5/IT3a Transfer Status refers to an employee who is changing the pay frequency or changing their tax status. The employee is terminated and re-employed under their new status. Setup is where certain custom options are setup and is explained in full under the Getting Started section of this manual. Batch Run is a way of processing your payslip by selecting a group of employees rather than one at a time. Batch Payslips, is a way of printing the payslips by selecting a group of employees on that payroll. Reports will take you to a sub-menu of various report choices. E-IRP5 creates the electronic submission file of IRP5/IT3a for SARS E-UIF creates a file at the end of each month to submit your employees UIF deduction details to the department of Labour. It allows you the option to your file directly to declarations@uif.gov.za Undo IRP5 allows the user to unlock IRP5 s that have been created when an employee is terminated and needs to be re-instated. Be cautious when using this option. Read the screen carefully before making your selection. 33

34 ! THE PAYROLL PROCEDURE CHECKLIST Add/Edit employee information Changing the Payslip Profile Update Loans, Overtime, Leave & Bonuses Terminate employees if required Process Payslips Make temporary changes to payslips if required Rollback payslips if necessary to correct errors Finalise Payslips & Save Processing & Printing in batch form Print required reports Print and lock the EMP201 for the respective period Create and UIF file to Dept. of Labour Backup data This is a suggested A to Z guide to processing a payroll. By using this, all the important steps can be considered Or ignored as is relevant. 34

35 ADD/EDIT EMPLOYEE INFORMATION: To add an employee, click on the add button on the Utility toolbar. For more detailed information, go to Getting Started and the section on adding employees, which is featured at the beginning of the manual. Editing the employee s record is as easy as highlighting the employee on the select employee screen and then clicking on the Edit button. Use this option to change fields such as rates of pay, personal details, banking details, hours worked, etc. CHANGING THE PAYSLIP PROFILE Once you have selected the employee to be changed, click on the payslip profile tab and at the bottom of the Income & Deduction profiles. Use the add, edit, erase buttons to update this record. Remember you can use these screens to add temporary or permanent earning and deductions. LOANS The system caters for more than one loan type. To add a loan, click on the add button. You will see a similar screen to the one below. Choose the description of a loan previously created by clicking on the down arrow or create a new one. The original amount is the total value of the loan You would only have a carried forward balance if the loan was initiated on another system. In this case the original amount would still be the total value of the loan and the carried forward amount would be the outstanding balance at the point of adding it to the system. Simple Interest can be calculated on the loan by advising the % in the Interest Rate field By reading the information icon you must decide whether or not this loan qualifies for fringe benefit tax. Enter the number of periods over which the loan is to be repaid. Click on the calculate button for the system to work out the repayment value or enter it yourself in the per pay period (weekly/fortnightly/monthly) payment field. Choose the date that the repayment will start. To edit an existing loan, highlight the loan from the loan list and click on view. You will see a screen similar to the one above. If you wish to change the monthly payment you may do so. Remember the new figure will remain in place until it is changed again. You will not be able to increase the existing loan balance but you could add another loan. 35

36 If an employee pays off this loan in full and you wish to stop any further deductions, you can add a payment by clicking on the add button below the payment history. Enter the date, description and value. This will automatically reduce the current balance. BONUS TAX SAVINGS An employee who will receive an annual bonus may like to have the opportunity to save a nominated amount towards off-setting the tax he will pay on this type of income. A saving scheme has been created to do this and works as follows: To have your employee s bonus paid automatically by the system, select a category on which the bonus is to be paid. If you choose package the bonus will be calculated on the basic salary plus any permanent incomes, i.e. Basic salary plus travel allowance plus cell phone. Select the month you want the system to pay out the bonus. The estimated tax on bonus is calculated by the system and is automatically updated if the estimated annual income increases during the year. To activate the Bonus Tax Savings, tick the indicator as seen above and enter the nominated amount. To ensure the savings will cover the estimated tax, divide the estimated tax by the number of months from the current month to the payment. Even a partial savings can help towards the enjoyment of your annual bonus. On activation the system will start to deduct the nominated amount. The log of deductions towards this saving will be recorded here as well as the total amount saved. If you are carrying forward an amount from a similar scheme in another payroll to this one, use the savings carried forward field to bring in this amount. 36

37 The deduction will be shown on the payslip as follows: If there is a saving balance at the end of a tax year, the system will automatically carry this forward to the new tax year. As we are deducting this as a saving and not tax, we are not restricted by deducting and paying over tax between the start and end dates of the tax year. In the month the bonus is to be paid, the system will automatically refund the total saving at that point and return the balance to zero. It will continue to deduct bonus tax savings in the following months unless you de-activate the savings scheme. See above example of the annual payment and the refund of the bonus tax savings. If the employee decides not to save anything further and there is an outstanding savings balance, simply untick the activate bonus tax saving indicator and the system will prompt you to leave the saving balance until the bonus is paid out or to pay it out on the next payslip. There is always the option to re-activate the scheme at any time. The system will automatically refund the savings if an employee is terminated. 37

38 Please note: The savings would normally reside in the employer s bank account and does not form part of the monthly EMP201 report! It would be advisable to draw up a document containing the employee s signature giving permission for this deduction, stating the nominated amount and any other terms attached to this. This is to cover both parties in the event of a dispute. PROCESSING BONUSES Annual Bonus Annual bonus payments are usually paid with the normal payslip, if paid during the year, and sometimes paid earlier on a separate payslip when paid in the month of December. Make sure you have selected one of the bonus payment options, either based on salary, package or amount. If you enter the month the bonus is to be paid, the system will automatically include the indicated value with the Normal Payslip for that month. To pay your employee s annual bonus on a separate payslip before the Normal Payslip, click on the payslip tab and select the Add button. Select the indicator for 13 th cheque and OK Once the payslip has been printed you can, at a later time during the same month add another payslip for the basic salary and other allowance and deductions. 38

39 Other Bonus The system assumes that the term 13 th cheque is used for the annual bonus. Therefore any other payments linked to SARS code <3605> would fall under the category Other Bonus. This would include performance bonuses, merit awards or production bonuses. Having run a Normal Payslip for a particular month, the system allows the addition of another payslip for commission. To do this, make sure the month is set back to the same as the Normal Payslip. Choose Other Bonus and select merit type bonus. When you get to the screen where you enter the value, change the SARS code to <3606> and the system will convert the description to commission. Proceed as normal. Please note: Reports should be re-printed at this stage if they were printed after the Normal Payslip run as both payslip values will appear in the month s reports. See the section on reports. Annual Bonus Weekly & Biweekly Frequencies Make sure you have selected one of the bonus payment options, either based on wage, package or amount. If you select wages you must enter the number of weeks or biweeks in the wages x weeks field. This multiples the normal weekly wage by the value in this field. The package field takes the normal weekly wages multiplied by the number of weeks indicated As with a monthly frequency, the bonus can be paid automatically in the nominated period or on a separate payslip. The process procedure for paying the bonus on a separate payslip is the same as in a monthly frequency, which is detailed on the previous page. 39

40 OVERTIME Under the Leave & Overtime tab you will find the section on overtime. Use the add, edit and erase button to update the above screen. You cannot edit or erase overtime which has already been processed. Once you have clicked on the add button the screen below appears: Select the date the overtime was worked Select the overtime rate or click on add a new rate if another is required Enter the hours worked and click on OK The system keeps a historical record of overtime paid during a tax year. The example below shows overtime which was processed on a previous payslip: 40

41 MANAGING YOUR EMPLOYEES LEAVE Setting up leave management is discussed in detail in an earlier chapter of this manual. It is important to keep your leave taken details up to date in order to have records which mean something. Also it is worth repeating that in the case of weekly & biweekly payrolls, annual leave and sick leave entered in a specific week in the leave management record pays out automatically in the next payslip so you may need to reduce the normal hours paid to ensure only the total payment does not exceed the normal for the week or biweek. This adjustment is not required if the employee is going on leave for more than one week and you wish to pay this out in advance. Unpaid leave in a monthly payroll shows as a negative income, automatically reducing the taxable income. See the section on payslips to get instructions on processing annual leave for more than one period.! TERMINATING AN EMPLOYEE When the need to terminate an employee arises the following procedure should be followed: Select the employee that is to be terminated and click the terminate button You will see the following screen. Select the date of termination Select the correct reason for termination. This is carried forward in the submission for UIF (UI19 declarations) The final payslip is automatically produced and will pay out annual leave due and refunds any bonus tax savings balances that may exist. 41

42 To calculate the leave value, take the monthly package and divide by the days per month and multiply by the leave days due: (R8000 / 21.67) x days = R If you are happy with the final payslip you can click save Click Yes to print your final payslip The following warning message will appear, click on OK You will now find the terminated employee at the bottom of your screen under Terminated Employee.! PROCESSING PAYSLIPS The payslip tab lists each individual s payslip/s processed in the current tax year. It is possible at any time during the year to highlight one of these entries and click on the print button at the bottom of the screen. It is also possible to the payslip to a third party by clicking on the payslip button also found at the bottom of the screen. To add a payslip for an individual employee, click on the add button at the bottom of the screen. 42

43 Select the type of payslip you wish to process. The system will automatically select the period after the last payslip. If an employee is engaged or terminated during a period then tick the portion of the month box and select the dates to and from the employee should be paid for. If it is a full period the system will pick up the default days worked from the working hours tab in the personal tab. Click on OK to continue The screen below allows you to preview the calculated values of the entries and to make changes if necessary. 43

44 Highlight the entry you wish to edit, and then click on the edit button. Leave, overtime, loans, pension, provident and medical aid cannot be edited here. You will have to cancel and make the changes in their original fields before continuing to add the payslip again. If you are satisfied, click on the save button at the bottom of the screen. This will take you back to the payslip tab; you can now print or the payslip. Other Types of Payslips Selecting 13 th cheque or other bonus as a payslip type allows you to pay annual bonus or other payments on a separate payslip, but still allowing you to produce a Normal Payslip in the same period. The calculated data from both payslips will be shown together on the reports.! LEAVE PAYSLIPS OVER MORE THAN ONE PERIOD In weekly and biweekly frequencies there is a need to pay employees for leave pay in advance. In order to produce a payslip with the correct earnings and deductions it is necessary to increase the permanent allowances and deductions by the number of weeks being paid together. Start by entering the leave in the annual leave manager. When you select to add a payslip either individually or by batch you will see the following screen: Individual Employee Screen Batch Input Screen The hours worked field refers to the normal hours being paid for the period (i.e. the hours they physically worked), to which the leave pay will automatically be added as per the annual leave record. The multiply field defaults to the number of multiplies of permanent allowances and deductions it will process. As you can see in the example below, the normal tool allowance of R6.00 has been increased by 3: 44

45 Where the leave period covers a portion of a week or biweek, you must take care in processing the first payslip on their return from leave. This would cover the outstanding period until the normal week end. You must only enter the actual hours worked for the period and consider that the permanent allowances and deductions may be already been paid for this period with the leave pay. If this is the case then the multiply field will be zero HAVING SAID THIS, THE SYSTEM S BUILT IN INTELLIGENCE WILL BE ABLE TO MAKE THE DECISION FOR YOU. PRINTING PAYSLIP All you have to do is select the default settings you require for payslips and other reports via Setup and then Report Options. SORT OPTION can be Employee Name, Employee No/Cost Centre, Cost centre/employee No. Note that the Cost Centre sort options will only work correctly if you have setup Cost Centres on each employee's Personal Tab Info. COPIES is the default number of copies to be run of each report. STYLE is only applied to the payslips option. The payslip can be printed to three different styles: 1. one payslip per A4 2. two payslips per A4 3. confidential payslip Examples of payslip layout on following page... 45

46 Example 1: One per A4 Example 2: Two per A4 Example 3: Confidential Paper This will ensure security within your company!! Confidential Payslips can be purchased from any Walton s Store. Please use reference: A4004. These payslips are available per pack of 100 or

47 BATCH PAYSLIP PROCESSING A batch run allows more than one employees payslip to be processed at a time. Please select the correct ending date of the period of the payslip, or, in the case of monthly paid employees, the correct month of the payslip. When the Pay button is pressed, a payslip will be processed for all the selected employees (employees that have a red tick next to them). A number of filters and other options are necessary to make the selection of employees to process easier. The list of employees can be filtered by: Payment frequency (i.e. daily, weekly, biweekly or monthly) Type of Batch Run (i.e. Whether normal payslips or 13 th cheque) Sort by (i.e. sort employees by employee name or employee number) When an employee is greyed out, that employee may not be selected. A reason for this is shown to the right of the employee s name and number. To select all the employees who are in the list, click on the + button in the All group at the bottom left hand side of the screen. To deselect all the employees, click on the - button in the All group. To select a single employee either double click on the employee, click the button with a + on it in the Single Group or press the space bar. To deselect a single employee either double click on the employee, click on the - button in the Single group or press the space bar. Click on Pay button to continue. 47

48 When running a batch in a weekly or biweekly frequency or when an employee is paid hourly in a monthly frequency, the system brings up the default hours setup in the working hours tab and gives you the opportunity to enter the actual hours worked for each employee. If you are not happy with the last batch run, you can click the Rollback Last Batch Run button to rollback the last run. This will undo the calculation for all the employees run in the batch. Please note that you can only rollback one batch run at a time. You cannot use the rollback function here unless the payslip was originally calculated in a batch. Once processing is complete you can select to print or the payslips. Selecting print will display the payslips on the screen first to view and then you can print them by selecting the print icon on the top left hand corner of the screen or you can to Reports and print the Cost/Pay register report to get an overview of the payslip details. will attach a.rtf file to an so that you can send a batch of all the payslips to one specific person who will in turn print out he payslips and distribute to each individual (E.G. Remote branches would have the payslips ed to the manager/supervisor to distribute to all staff). 48

49 BATCH PAYSLIP PRINTING This function will allow you to print all payslips that been processed, for all employees, for the period that you stipulate. Payslips will also be included even if the payslips were not printed in batch. This is incorporated to save you time in printing payslips. It will not be necessary to navigate through each individuals payslip and then to print them. Click on the Batch Payslips button. You now have the option of selecting or deselecting the employees payslips that you want to print. To simplify the grouping of employees there are sort functions incorporated: 1. Sort by Pay Frequencies 2. Sort by the Employee Name or Number 3. Sort by the Period Once you have grouped and selected the necessary employees for printing, click the Print or button.! ROLLBACK If you have printed a payslip and discovered an error, it is necessary to rollback the payslip in order to fix the error and redo the calculations Rolling back of the last payslip actually deletes that payslip from the list, hence the prompt checking whether you want to rollback the last payslip. You should not roll back a payslip that has been paid out. Changing the details of these payslips could cause your reports such as the EMP201 not to balance and further more, making reconciling your figures at tax year end very difficult. It is much better to make an adjustment payslip in the next period. If you rollback more than one period, the temporary earnings and deductions originally processed during that period are not held in memory and therefore will have to be re-entered. 49

50 ! REPORTS As you can see by the example above, there are a number of reports available covering employee details, leave management, calculated data reports and the very important SARS Tax Year End reports. To print a report, select the relevant button and fill in the filter options as set out in each one. These include choosing the frequency of payroll and the period you wish to report on. To get an idea of what information is covered on each report click on one of the items above. MASTERFILE This report provides a hard copy of the employee s personal information, which can be used for checking and consequently updating bank details, etc. The report selection has filters to list only certain information (e.g. Frequencies of payroll, status of employee either terminated or active). The report also has different sections including personal, employment, payment, contact, tax and notes. You may report all of these or only certain ones by un-ticking the section you do not require. PAYSLIP PROFILE This report shows the permanent items entered into the payslip profile at the time the report is printed. The report lists the employees individually giving total earnings and total deductions for each employee. INITIAL TAKE ON If you are in the situation where you have started processing your payroll during a tax year and wish to take on YTD totals of employee s incomes, deductions & tax, this report shows the values that you entered against the SARS codes. IT is a great way of checking that the figures here agree with the capture document and that these both agree with the PAYE that was paid over. LEAVE This report gives totals for leave brought forward from a previous year, the annual entitlement, leave taken and what is due as at the period end chosen when requesting the report. These details cover annual, sick, unpaid and other leave. 50

51 LEAVE TAKEN Details of what kind of leave was taken and when, is covered in this report. When selecting the period you can print the report from the beginning of the current tax year to the last calculated period or a specific period as defined by you. Historical details are cleared at the beginning of each new year. It is a good idea to print this report out at the end of the year for long term records LOANS This report has two print options for the employee s loans. Summary (this will give detail of the selected loan for a particular period) Detailed (this will show the history of payments against the loan) DEDUCTIONS This report gives detail of employee deductions by grouping them under the type of deduction: SARS Deductions Include Pension, Provident, Retirement Annuities and Medical Aid. Other Deductions List deductions set up by you. The report will give details based on the period you have selected. MONTH SALARY ANALYSIS This gives a summary of remuneration as well as other costs including company contributions for pension, provident, medical aid, UIF and SDL. The last column gives the total cost for each employee. YEAR SALARY ANALYSIS The year salary analysis is similar to the month salary analysis report as it gives details of the remuneration and company contribution, which makes up the employee s cost to company. The difference being that the report details are printed by month as opposed to individual. IRP5/IT3a This report creates the tax year end certificates required by SARS. The system automatically assigns the employee an IRP5 or IT3a depending on their incomes and status. This report is usually printed in duplicate as one report is given to the employee and another is kept by the employer for record purposes. This report can be printed for an individual or by batch. IRP501 This report is a summary of all PAYE deducted, month by month, in all frequencies of payroll in a company. The months start and end dates for the accumulation of this information is set up at the beginning of the current tax year in the employer s record. This report can be printed at any time during the year for an on-going reconciliation. EMP501 This report is used at tax year end to compare your monthly payments of PAYE, SDL & UIF to the reconciliation sent to SARS. This report is a summary of all PAYE, SDL & UIF deducted, month by month, in all frequencies of payroll in a company. This report can be printed at any time during the year for an ongoing reconciliation. YTD SUMMARY REPORT This is a useful report as it gives an overview, month by month, of incomes and deductions by SARS code. It shows, in report format, how the IRP5/IT3a certificates will appear. This can be useful for reconciling your tax year end. There are filters here to allow you to print the report by frequency and by current, terminated or all employees. COST/PAY REGISTER This is a gem! This report is the report format of the payslip. It has all the details of the payslips except the YTD totals. At a glance you will be able to pick up earnings, company cost and deductions, per employee. If printed in cost centre order, the report will show totals per cost centre and a grand total at the end. It does have the option to print all frequencies on one report. If you select this option the payroll will accumulate the totals for weekly, biweekly and monthly by the dates set up in the employer record at the beginning of the year. REMUNERATION TRANSFER A report giving detail by payment type is created here. Where the employee is paid by bank transfer the report will be broken down into employee s banking details arrange by similar bank, with totals for each one. Where the employee is paid by cheque, a list of employees and the amounts will be printed for you. The employees being paid by cash have a coinage analysis, detailing the quantity of cash required by denomination selected in the setup option under Coins. If the rounding option is active the report will also show by employee the rounding adjustment. You can also print a summary giving totals for each type of payment which balances back to the net pay. 51

52 EMP201 This monthly report is complied for your payment of PAYE, UIF & SDL. It contains the relevant information required by SARS, combining weekly, biweekly and monthly payrolls together. Included in the report is the number of permanent or temporary staff as well as the earnings which the payments are based on. Ensure you have completed the month end period for weekly, biweekly and monthly payrolls before producing this report for payment to ensure that it contains the full picture of information. You should lock this report once it has been passed payment, the logic being that once the payment has been made changes should not be allowed. You can lock it by printing the original copy of the EMP201 for the respective month. PAYE This report details by employee, the remuneration, the tax deductible amounts and the tax paid. If there are any exemptions, these will also be detailed here. MONTH UIF This report details by employee, the remuneration, the UIF exclusions, the UIF company and employee contributions and the total due for payment. Reasons for non-contribution are also detailed here. MONTH SDL This report details by employee, the remuneration, the SDL exclusions, total levy-able amount and the total amount to be paid to SARS. Any employees not contributing will be listed separately with the reason for non-contribution.! CREATING & ING THE UIF DISK Find the UIF button on the main toolbar at the top of the screen. Select the month you wish to submit. You must have calculated information in the chosen month. Path Name is where it will keep a copy of the file for your records and it will attach the file to an File Name is the company s UIF Reference Number with the extension.001 Choose test or live. We suggest live unless it is your first submission. Click on the button to automatically send the file to the Dept. of Labour as an attachment on an message. You need to select Express or Outlook depending on which one you use on a day to day basis for your ing on the screen below: 52

53 Example of the with the file attached and ready to be sent to the UIF office! TRANSFERRING THE STATUS OF AN EMPLOYEE An employee s status will need to be changed if their payment frequency or tax method is changed during the tax year. The old employee file will be terminated and the IRP5/IT3a with the year-to-date information at that time submitted. A new file will be added with the newly selected payment frequency and/or tax method. Any payslips added after that will use the new status to do the calculations. A second IRP5 will be submitted at the end of the tax year. Select the employee and click Transfer Status Make the necessary changes to the status of the employee and click the ok button You will now find that the employee appears under the Terminated Employees for the previous status (e.g. weekly payroll) and under the current employee list for the new status. Make any necessary changes to the fields that are changing and push save. You can now still view the old status of the employee under the Terminated Employee List, but can no longer edit the information. You will find that the employee is still in the Employee list, but has a different frequency or tax method. 53

54 ! TAX YEAR END PROCEDURES Before completing your tax year end procedures it is always advisable to check that you are on the latest version the software as well to make a backup!! PRINTING A DRAFT COPY OF THE IRP5/IT3A CERTIFICATES Before handing out the tax certificates, it is a good idea to check the information that appears thereon. There are two options regarding this. One of the helpful reports to print is the YTD Summary Report printed via the reporting menu found under SARS/Year End reports. This gives you a historical view of the payroll per employee per month summarized by SARS code. This compact report is useful as it gives a year view of an employee s details. This could be used as a check, as it has total headings similar to the IRP5 certificate. The other is to print a draft copy of the certificates. Selecting IRP5/IT3a under the report option SARS Reports will take you to the following screen: 54

55 Select the tick box and click OK to the above warning message. Make sure you select the draft option for certificate as per below example: You can either print draft copies for all employees by clicking on All + or for a single employee by deselecting All - and then highlighting the one you require and then clicking Single +. 55

56 This will produce a certificate with the word DRAFT COPY typed across it, as per example below: We suggest that you only print ORIGINAL IRP5/IT3a certificates once your electronic submission has been accepted by SARS! WHAT IF YOU NEED TO ADJUST YTD FIGURES? This is a tricky question. The answer would depend on the nature and reason for the change. Vanilla Payroll has been created with a complicated backend database in order for the program to be most user friendly. With that in mind we haven t allowed the user to have access to the YTD records once a payslip has been processed. In any circumstance where YTD figures need to be adjusted, the most common means of repairing this error is by rolling back the payslips concerned. Always make sure however that this will not effect your already submitted EMP201 report. If the error is more complicated then possibly the data might need to be ed to Vanilla Payroll. It must be advised that if it is necessary to send your data to Vanilla Payroll, a charge will be levied to your account. info@vanillapayroll.com 56

57 CREATING THE ELECTRONIC IRP5 FILE Assuming that your tax reconciliation is done and everything balances, click on the e-irp5 icon: The following window appears: 57

58 There are two important things to understanding the rules of electronic submissions: 1. Test/Live Indicator A test file allows you to load your file onto E@syFile many times with the same generation number. Once a file is submitted as Live it can only be loaded once with that generation number. If it is rejected due to incorrect information, a new file must be submitted with a new generation number. The generation number simply increments by one from the last number used. 2. Period of Reconciliation This period indicates the submission period to accommodate multiple submission in a year. Example: Where the reconciliation must be submitted for period ending February 2011, the period must be completed as Where the reconciliations must be submitted for period ending August 2011, the period must be completed as Weekly, biweekly and monthly payroll information with the same PAYE registration numbers will be combined into one electronic record after you have imported your file into E@syFile. If you have two payrolls with the same PAYE registration number on different systems, each one will be submitted separately with different generation numbers. So for obvious reasons the initial submission should be done as a TEST file and once it is cleared of errors it can be recreated as LIVE. 58

59 TO CREATE THE E-IRP5 FILE FOLLOW THE BELOW STEPS: 1. Click on E-IRP5 2. Click on the drop down arrow to select the location to send your file to. (It will default to C:\Program files\vanilla\sp2011\irp5.11 if it was created using Vanilla Payroll 2011) 3. Select whether you would like to create a Test or Live file 4. Select the period of reconciliation 5. Click Continue 6. Click OK to the next message: 7. Click Yes to the following message: 8. Click Yes to the following message: As with the backup of the data files, I strongly suggest making an additional copy to a CD. SARS can request for information to be re-submitted by you should it be misplaced. 59

60 WHAT SARS REQUIRES OF YOU Once you have completed the creation of the E-IRP5 file you can now download from Once you have downloaded you can then import your TEST file. If you receive an error, you will have to fix them in Vanilla Payroll and then re-create & import another TEST file. Once your TEST file has been successfully validated, you can then create a LIVE file in Vanilla Payroll and then complete your Reconciliation Declaration on E@syFile. Whatever the outcome, we are available to advise you wherever we can to make sure your year end procedures are a breeze. Once you have received notification that your file has been submitted successfully, you can print your IRP5/IT3a certificates as Original and hand them out to your employees (IRP5/IT3a certificates can also be printed from E@syFile). PRINTING IRP5/IT3A CERTIFICATS FOR YOUR EMPLOYEES As mentioned earlier, we suggest that you wait until your electronic submission has been accepted by SARS before printing and handing out your certificates. Remember that once you have printed the certificates the system locks the employee records, preventing you from making any further changes. You will find the IRP5/IT3a certificate option under SARS/Year End reports on the reports menu. You can print the certificates for all payroll types or select them by frequency. Make sure the employees have ticks next to their names. Click on the print button to continue. Select to print two copies, so that you can give a copy to the employee and keep a copy for your records. Once the printing is complete, you will notice that the screen above will now indicate the IRP5/IT3a number it has allocated to each employee and the number of copies that were printed. Please be advised that only IRP5/IT3a certificates printed from EasyFile will be accepted by SARS due to the SARS logo and bar code 60

61 ! GETTING STARTED WITH THE NEW TAX YEAR The first thing you have to do is renew your license by purchasing your update. You can download it from our website: ; click on Important Updates. Once you open your new payroll for the first time, you will be prompted on whether to register or not. Fax your signed registration form to or , attached with your payment if not already completed. A registration code will be returned to you, which will unlock the full working version of Vanilla Payroll. Once the program is registered, you will be prompted to import your data from the previous tax year as per screen below: Click on Yes to import and then locate your database via the browse button. (Example: If you are moving from Vanilla Payroll 2011 into Vanilla Payroll 2012) Note: The default location is C:\Program Files\Vanilla Payroll\SP2011\Data If the directory is not found, then you have installed the program in a different location. You may require your IT Technician to help you locate where you have installed the program. You may import your data from the previous tax year at any stage as only the personal information and company details are imported. No YTD figures are imported into the new payroll. If you had more than one company in the previous payroll, then you can double click to remove the red tick in front of the company(s) which you do not want to import into the new payroll. Example below: Test company to be imported from Vanilla Payroll 2011 to Vanilla Payroll 2012 but not the Demo Company 61

62 SETTING UP THE NEW TAX YEAR DATES WHILE IMPORTING: Monthly payrolls are straight forward as they all have their tax year start dates on the 1 st March and end on the last day of February. Weekly and Biweekly payrolls are different. It is very important to correctly setup the weekly and biweekly frequencies. The correct way to setup the start of the tax year date is to make sure that: 1. The start of the tax year is correct 2. The number of weeks in the year is correct The start of the tax year date must be the first day after your last pay period. E.G.: If you last pay period in the previous payroll was the 27 February 2011, Then, the start of your new tax year will be the 28 February Please note that you do not have to enter the month end dates for each period for your weekly/biweekly employees these will default according to your setup. These dates allow the system to close off the report for the monthly returns for PAYE, UIF and SDL and refer to your month end dates for your weekly/biweekly employees. The following screen appears: THE END 62