Release Notes 4.8a. Premier and Classic. March 2017

Transcription

1 Release Notes 4.8a Premier and Classic March 2017

2 Table of Contents 1.0 RSA: Employee Tax Incentive - Explanation of Amendments and Calculations Wage Qualifying Test Summary of the legislation for the wage qualifying test from March 2017: Employed and Remunerated Hours Actual Wage Remuneration Application of employed and remunerated hours in terms of remuneration Calculation of the ETI Amount Roll-Over and Reimbursement RSA: Employment Tax Incentive (ETI) Amendments in the System (Classic/Premier) Important Notice ETI Setup Guidelines ETI Company Setup Check Employee Wage Regulating Measure Employee Tax Incentive Tab ETI Engagement Date Wage Regulating Measure Employed and Remunerated Hours (Rem) Employed and Remunerated Hours (Wage) Number of days worked in this Month Message Employee ETI History Screen Summary Tab Detail Tab Global Activation of Wage Regulating Measure ETI Employed and Remunerated Hours Import Import Export ETI History Export Export Import ETI Validation Report (Real Number 767) Checklist Control RSA: Statutory Changes (Classic/Premier) Tax Table Changes Other Tax Changes Affecting Payroll Directors Deemed Remuneration Retirement Funding Income (RFI) Definition Other Tax Changes Not Affecting Payroll Subsistence Allowances and Advances Table for Calculation of Rate per km\travel Allowance Remuneration Proxy 40 Release Notes 4.8a Page 2 of 81

3 3.3.4 Employer Provided Bursaries Reimbursive Travel Allowance Certain Dividends Included in Remuneration Value of B in the Residential Accommodation Fringe Benefit Calculation Africa: Ghana Change to SSNIT Tier 1 (Premier) Africa: Kenya Tax Tables (Premier) Africa: Nigeria Social Insurance Trust Fund (Premier) Payroll Changes Add Regular Earnings to the Calculation of NSITF Amend Report Setup Africa: Zambia Statutory Changes (Premier) Skills Development Levy NAPSA Ceiling Increase New PAYE Tax Tables Budget Module- mscoa (Premier) Increase of Budget Information per Job Global Budget Increase Income Verification (Classic/Premier) How it Works Benefits to Employer and Employee? Income Verification Setup Process Access Control Uploading of Payslips Work Address Code (Classic/Premier) Work Address System Description Code Conversion Adding Work Address Codes Employee Address Details Tab Reporting: Swaziland - Country Specific Reports (Classic/Premier) Reports Menu Reports in Excel Audit Log File Windows Regional Settings Swaziland Reports SNPF Report Electronic NPF200 Form PAYE Monthly Declaration Return PAYE 16 Reconciliation of Tax Deductions Made and of Stock of Certificates on Hand PAYE 15 Annual Return of Salaries 67 Release Notes 4.8a Page 3 of 81

4 PAYE 05 Employee Tax Certificate IRP5 Electronic Submission File Reporting: Africa New and Changed Reports (Premier) Tanzania Form LAPF 10 Report Other Report Changes (Premier / Classic in some instances) Reporting: RSA - UIF Submission Report (Real Number 651) (Classic/Premier) Reports and Report Writer Codes (Classic/Premier) Instructions to Import Reports Batch Imports Export/Import Reports Option New Standard Reports RSA Users (Classic/Premier) Changed Standard Reports (Classic/Premier) All Users (Classic/Premier) RG Codes All Users (Classic/Premier) Support Lifeline (Classic/Premier) Items Resolved / Requests Implented (Classic/Premier) Items Included from Previous System Enhancements (Classic/Premier) 81 Release Notes 4.8a Page 4 of 81

5 1.0 RSA: Employee Tax Incentive - Explanation of Amendments and Calculations The Taxation Laws Amendment Act, 2016, promulgated on 19 January 2017 in Government Gazette 40562, extends ETI for another 2 years, ending on 28 February The Act also contains a number of changes that we have made provision for in the Payroll System. You will find an explanation of the ETI amendments and calculations and the changes made to ETI in the Taxation Laws Amendment Act in this section, followed by the changes we have made to the system to accommodate these changes in the next section. 1.1 Wage Qualifying Test In order for an employee to qualify for ETI, he/she must pass the wage qualifying test. This is one of the qualifying criteria to establish if an employee is a qualifying employee. Other qualifying criteria includes; employed on or after 1 October 2013, 18 to 29 years old, valid RSA ID / Asylum Seeker Permit / Refugee ID Number, not a domestic worker, not a connected person to the employer and monthly remuneration must be less than R Wage refers to the cash amount paid for ordinary hours of work. This is typically basic salary or basic wage of the employee, excludes elements such as overtime, commission, bonus etc., and includes any leave pay (such as pay for annual leave, sick leave, family leave etc.). The wage the employee earns should be at least the minimum wage according to the wage regulating measure (collective agreement, bargaining council or sectoral determination) or R2 000 for a full month, which is at least 160 hours, if there is no wage regulating measure. Before March 2017 If a wage regulating measure was applicable, then the monthly wage was compared to the minimum monthly wage (it was understood that a rate per hour comparison was allowed as this was effectively the same as grossing-up the wage). If no wage regulating measure was applicable the monthly wage was calculated in the following way: If the employee was employed for less than 160 hours per month, then a gross-up of the wage was performed to see how much the wage would have been for 160 hours. If the employee was employed for 160 hours or more, no gross-up of the wage was required. Hours employed referred to: Contractual normal hours (no overtime hours), in the case of a permanent employee for ETI purposes (those employees who work in terms of an employment contract that specifies a contractual predictability of regular work in the future. In other words, an employee with a standard amount of hours to work in a month. Actual total hours worked in the case of a temporary employee for ETI purposes (employee without a standard amount of hours to work in a month or an employee who works an irregular amount of hours, such as temps or casual workers). Actual normal hours employed for new and terminated employees. Release Notes 4.8a Page 5 of 81

6 Please Note: The definitions for permanent and for temporary are not legal terms, but our own definitions we used to explain the legislation. To simplify the calculation, from March 2015 the test was not based on the wage rate per month, but by applying a rate per hour comparison: The minimum wage rate per hour applied if there was a wage regulating measure, or If there was no wage regulating measure, an employee qualified if the wage rate per hour of the employee was equal to or more than R12.50 (R2 000/160 hours). From March 2017 The legislation was amended to change the word from employed to employed and paid remuneration in order to clarify the applicable hours worked in the grossing up/grossing down calculation. The term employed has a different meaning to employed and paid remuneration and therefore some of the calculations are changing Summary of the legislation for the wage qualifying test from March 2017: If a wage regulating measure is applicable: The wage paid should be compared to the minimum wage of the wage regulating measure in respect of that month, it is understood that a rate per hour comparison is allowed as this is effectively the same as grossing-up the wage. If no wage regulating measure is applicable: If an employee is employed and paid remuneration for less than 160 hours in a month, then gross-up the wage to 160 hours to determine if the monthly wage is R2 000 or more. If an employee is employed and paid remuneration for at least 160 hours in a month, no gross-up of the wage is required to determine whether the monthly wage is R2 000 or more. The amended legislation allows for a rate per hour/week/month comparison for employees with a wage regulating measure. However, the amended legislation does not provide for a gross-up calculation if a wage regulating measure is applicable. Therefore, our system will still perform a rate per hour comparison for employees with a wage regulating measure to apply the wage qualifying test. The wording of the legislation in respect of employees without a wage regulating measure has changed to indicate that a gross-up calculation should be done based on all hours employed and remunerated. Therefore, we will not be performing a rate per hour comparison on employees without a wage regulating measure. The wage qualifying test must be applied strictly on a monthly basis (R2000 for a full month, which is at least 160 employed and remunerated hours). Release Notes 4.8a Page 6 of 81

7 From March 2017 The following wage qualifying tests will be applied: Wage regulating measure (no change) Check if contractual/actual wage rate per hour of the employee is equal or more than the minimum wage rate per hour (according to the wage regulating measure) of the employee. No wage regulating measure If employed and remunerated hours are less than 160 hours a gross-up calculation will be done using the actual monthly wage to apply the wage qualifying test. Actual monthly wage / employed and remunerated hours x 160 If the employed and remunerated hours are 160 or more the actual monthly wage will be used to apply the wage qualifying test. If the actual monthly wage or grossed-up monthly wage for a full month (at least 160 hours) is R2000 or more, the employee will pass the wage qualifying test. If the actual monthly wage / grossed-up monthly wage for a full month (at least 160 hours) is less than R2000, the employee will fail the wage qualifying test and no ETI will calculate. In order to apply this test, the system must know the following: Employed and remunerated hours Actual wage for the month Employed and Remunerated Hours Employed and remunerated hours are all actual hours the employee was employed and remunerated for. In other words, it should be the ordinary hours less any unpaid hours (such as unpaid leave hours, no work-no pay hours, strikes etc.) plus any additional hours (such as overtime hours, public holiday worked hours, hours worked on a Sunday etc.). Before March 2017 we distinguished between permanent employees (employees with a standard amount of hours to work in a month) and temporary employees (employees without a standard amount of hours to work in a month or employees who work an irregular amount of hours) in order to apply the employed hours. We used the employed hours to determine whether a gross-up of the wage should have been done. For explanatory purposes we will still distinguish between permanent, temporary, new and terminated employees. Permanent employees contractual/ordinary hours (average working hours per month according to the BCEA, calculated on a week or according to the employment contract) less any unpaid hours (such as unpaid leave hours, no work-no pay hours) plus any additional hours (such as overtime hours, public holiday worked hours, hours worked on a Sunday etc.). Release Notes 4.8a Page 7 of 81

8 Temporary employees actual number of hours worked in the month (the calculation of hours will include ordinary hours plus additional hours of work, unpaid hours will automatically not be counted). New and terminated employees actual number of hours worked if employed after the first day of the month or terminated before the last day of the month (the calculation of hours will include ordinary hours plus additional hours less unpaid hours). Please Note: It is our opinion that ordinary/contractual (average working hours per month) less unpaid hours plus additional hours can be used for permanent employees as this refers to the number of hours employed and remunerated during the month. Example 1 permanent monthly paid employee: The employment contract states that the employee s ordinary hours of work is 8 hours a day, 5 days a week (Monday to Friday) which is average working hours per month (in line with the BCEA). In the month of April, the employee took 30 hours unpaid leave (unpaid hours) and worked 3 hours overtime (additional hours). Employed and remunerated hours for the month: Contractual/ordinary hours unpaid hours + additional hours = = hours Example 2 permanent weekly paid employee: The employment contract states that the employee s ordinary hours of work is 8 hours a day, 5 days a week (Monday to Friday) which is 40 hours per week. The month of April has 4 weeks in the month. In the month of April, the employee took 30 hours unpaid leave (unpaid hours) and worked 3 hours overtime (additional hours). Employed and remuneration hours for the month: Contractual/ordinary hours unpaid hours + additional hours = (40 x 4) = 133 hours Actual Wage According to the Basic Conditions of Employment Act, actual wage will include the basic wage or salary (excluding fringe benefits and company contributions) paid to the employee for the month and excludes elements such as overtime, commission, bonus etc. Actual wage includes leave pay (such as annual leave, sick leave, family leave etc.). It is important that earning lines/components which form part of the employee s wage are separate from other earnings on the payroll. Release Notes 4.8a Page 8 of 81

9 Diagram to Illustrate the Wage Qualifying Test for Employees Without a Wage Regulating Measure No wage regulating measure *Hours less than 160 *Hours are 160 or more Gross-up calculation: Actual monthly wage / *hours x 160 Actual monthly wage Grossed-up wage is R2000 or more Grossed-up wage is less than R2000 Actual wage is R2000 or more Actual wage is less than R2000 Employee passes the wage qualifying test Employee fails the wage qualifying test, no ETI is calculated Employee passes the wage qualifying test Employee fails the wage qualifying test, no ETI is calculated *Hours refer to employed and remunerated hours. Release Notes 4.8a Page 9 of 81

10 Wage Qualifying Test: Wage Regulating Measure vs. No Wage Regulating Measure Wage qualifying test Wage regulating measure No wage regulating measure The actual wage rate per hour must be equal to or more than the minimum wage rate per hour specified according to the wage regulating measure for the employee to pass the wage qualifying test. Indicate/establish if the 'employed and remunerated' hours are less than 160. If the hours are 160 or more, actual monthly wage will be used. If the hours are less than 160, a gross-up calculation will be done on actual monthly wage. If the monthly actual / grossed-up wage is R2000 or more, the employee will pass the wage qualifying test. Please Note: It is the user s responsibility to process the correct employed and remunerated hours in order to correctly calculate and claim ETI. From March 2017, the wage qualifying test remains the same for employees with a wage regulating measure (rate per hour comparison actual wage rate per hour must be equal to or more than the minimum wage rate per hour according to the wage regulating measure). The wage qualifying test is only changing for employees without a wage regulating measure. Example 1 permanent monthly paid employee with no wage regulating measure The employment contract states that the employee s ordinary hours of work is 8 hours a day, 5 days a week (Monday to Friday) which is average working hours per month (in line with the BCEA). Employee A was appointed on 1 April Employee A meets all other qualifying criteria in terms of ETI. In the month of April employee A took 30 hours unpaid leave (unpaid hours) and worked 3 hours overtime (additional hours). Release Notes 4.8a Page 10 of 81

11 Payslip: Earnings Amount Salary R Overtime R Unpaid Leave R Commission R Total R Wage qualifying test: Receives at least R2000 wage for a full month (160 hours). Employed and remunerated hours: Contractual/ordinary hours unpaid hours + additional hours = = hours Monthly wage for 160 hours: Actual wage / employed and remunerated hours x 160 = (Salary unpaid leave) / x 160 = R2 100 R / x 160 = R Pass wage qualifying test as the wage for a full month is equal to or more than R Example 2 permanent weekly paid employee with a wage regulating measure The collective agreement states that the employee should be paid a minimum rate of R22.50 and that his ordinary hours of work is 45 hours a week. April has 5 weeks in the month. Employee A was appointed on 1 April Employee A meets all other qualifying criteria in terms of ETI. In the month of April employee A took 18 hours unpaid leave and worked 8 overtime hours (additional hours). The employer pays the employee R23.50 per hour. Release Notes 4.8a Page 11 of 81

12 Payslip: Earnings Amount Wage R Overtime R Unpaid Leave R Sick Leave R Total R Wage qualifying test: Actual rate per hour equal to or more than the minimum rate per hour according to the wage regulating measure. =R23.50 is more than R22.50 Pass wage qualifying test as employee A s actual rate per hour is equal to or more than the minimum rate per hour according to the wage regulating measure. 1.2 Remuneration Monthly remuneration (taxable earnings, taxable perks and taxable company contributions) is used to calculate the employment tax incentive amount. Before March 2017 A gross-up of remuneration was performed if the employee was employed for less than 160 hours a month. In other words, if the person was employed for less than 160 hours then a gross-up of remuneration was done to calculate what the person would have earned for a full month (a full month is seen as 160 hours). A full month s remuneration was used to calculate the ETI value. Gross-up calculation: Remuneration earned / hours employed x 160. Hours employed referred to: Contractual normal hours (no overtime hours) in the case of a permanent employee for ETI purposes (those employees who work in terms of an employment contract that specifies a contractual predictability of regular work in the future. In other words, an employee with a standard amount of hours to work in a month.). Actual total hours worked in the case of a temporary employee for ETI purposes (employee without a standard amount of hours to work in a month or an employee who works an irregular amount of hours, such as temps or casual workers). Actual normal hours employed for new and terminated employees. Please Note: The definitions for permanent and for temporary are not legal terms, but our own definitions we used to explain the legislation. Release Notes 4.8a Page 12 of 81

13 From March 2017 A gross-up of remuneration should be performed if the employee is employed and paid remuneration for less than 160 hours a month (for employees with and without wage regulating measure): If an employee is employed and paid remuneration for 160 hours or more in a month, then the actual amount of remuneration paid to the employee in a month (no gross-up calculation) is used. If an employee is employed and paid remuneration for less than 160 hours in a month the monthly remuneration is calculated as follows: Remuneration earned in the month / employed and remunerated hours x 160. Employed and Remunerated Hours Employed and remunerated hours are all actual hours the employee was employed and remunerated for. In other words, it should be the ordinary hours less any unpaid hours (such as unpaid leave hours, no work-no pay hours, strikes etc.) plus any additional hours (such as overtime hours, public holidays worked hours, hours worked on a Sunday.). Before March 2017 we distinguished between permanent employees (employees with a standard amount of hours to work in a month) and temporary employees (employees without a standard amount of hours to work in a month or employees who work an irregular amount of hours) in order to apply the employed hours. We used the employed hours to determine whether a gross-up of the wage should have been done. For explanatory purposes we will still distinguish between permanent, temporary, new and terminated employees. Permanent employees contractual/ordinary hours (average working hours per month according to the BCEA, calculated on a week or according to the employment contract) less any unpaid hours (such as unpaid leave hours, no work-no pay hours) plus any additional hours (such as overtime hours, public holiday worked hours, hours worked on a Sunday.). Temporary employees actual number of hours worked in the month (the calculation of hours will include ordinary hours plus additional hours of work, unpaid hours will automatically not be counted). New and terminated employees actual number of hours worked if employed after the first day of the month or terminated before the last day of the month (the calculation of hours will include ordinary hours plus additional hours less unpaid hours). Please Note: It is our opinion that ordinary/contractual (average working hours per month), less unpaid hours plus additional hours can be used for permanent employees as this refers to the number of hours employed and remunerated during the month Application of employed and remunerated hours in terms of remuneration If the employed and remunerated hours are less than 160, the system will do a gross-up calculation of the remuneration: Actual remuneration / employed and remunerated hours x 160 Release Notes 4.8a Page 13 of 81

14 If the employed and remuneration hours are 160 or more, the system will use actual remuneration. The actual/grossed-up remuneration for the full month has to be less than R6000 for the employee to qualify. If the remuneration for the full month is R6000 or more, the employee will not qualify and no ETI amount will calculate. Diagram to Illustrate the Calculation of Remuneration for All Employees (With and Without a Wage Regulating Measure) 'Employed and remunerated' hours *Hours less than 160 *Hours are 160 or more Gross-up calculation: Actual monthly remuneration / *hours x 160 Actual monthly remuneration Grossed-up remuneration is R6000 or more Grossed-up remuneration is less than R6000 Actual remuneration is R6000 or more Actual remuneration is less than R6000 No ETI amount is calculated Continue to calculate ETI amount No ETI amount is calculated Continue to calculate ETI amount *Hours refer to employed and remunerated hours. Release Notes 4.8a Page 14 of 81

15 1.3 Calculation of the ETI Amount Before March 2017 The ETI amount was grossed-down (pro-rated) if the employed hours were less than 160 hours: Full monthly ETI amount / 160 hours x employed hours. If the employed hours were 160 hours or more, the full monthly ETI amount was calculated. From March 2017 The ETI amount will be grossed-down (pro-rated) if the employed and remunerated hours (previously referred to as employed hours) are less than 160 hours: Full monthly ETI amount / 160 x employed and remunerated hours. If the employed and remunerated hours are 160 hours or more the full monthly ETI amount will calculate. Example 1 permanent monthly paid employee with no wage regulating measure The employment contract states that the employee s ordinary hours of work is 8 hours a day, 5 days a week (Monday to Friday) which is average working hours per month (in line with the BCEA). Employee A was appointed on 1 April Employee A meets all other qualifying criteria in terms of ETI. In the month of April employee A took 30 hours unpaid leave (unpaid hours) and worked 3 hours overtime (additional hours). Employee A s actual wage for April is R Employee A s actual remuneration for April is R Employed and remunerated hours: Ordinary hours unpaid hours + additional hours = = Wage qualifying test: Receives at least R2000 wage for a full month (160 hours). Actual wage / employed and remunerated hours x 160 = R / x 160 = R Pass the wage qualifying test as the wage for a full month is equal to or more than R Remuneration: Remuneration for the full month (160 hours) less than R Actual remuneration / employed and remunerated hours x 160 = R3 700 / x 160 = R Release Notes 4.8a Page 15 of 81

16 Continue to calculate the ETI amount as the remuneration for a full month is less than R Calculation of ETI amount: = R1 000 [0.5 x (monthly remuneration R4 000)] / 160 x = R1 000 [0.5 x (R R4 000)] / 160 x Pro-rata (gross-down) ETI amount ( employed and remunerated hours less than 160 hours): ETI amount / 160 x employed and remunerated hours = R / 160 x =R >>> Final ETI amount for the month of April. Example 2 temporary weekly paid employee with a wage regulating measure The collective agreement states that the employee should be paid a minimum rate of R22.50 Employee A was appointed on 1 April Employee A meets all other qualifying criteria in terms of ETI. In the month of April employee A worked 158 ordinary hours and 5 overtime hours (additional hours). The employer pays the employee R23.50 per hour. Employee A s actual wage for April is R Employee A s actual remuneration for April is R Employed and remunerated hours: Ordinary hours + additional hours = = 163 Wage qualifying test: actual rate per hour equal to or more than the minimum rate per hour according to the wage regulating measure. = R23.50 is more than R22.50 Pass wage qualifying test as employee A s actual rate per hour is equal to or more than the minimum rate per hour according to the wage regulating measure. Remuneration: Remuneration for the full month (160 hours) less than R = R Continue to calculate the ETI amount as the remuneration for a full month is less than R Release Notes 4.8a Page 16 of 81

17 Calculation of ETI amount = R1 000 [0.5 x (monthly remuneration R4 000)] = R1 000 [0.5 x (R4 528 R4 000)] = R >>> Final ETI amount for the month of April, the ETI amount will not be prorated (grossed-down) as the employed and remunerated hours are 160 or more. 1.4 Roll-Over and Reimbursement Before March 2017 If the employer was tax compliant, the ETI due to the employer (after the 6 month cycle) would have been reimbursed at some stage during the next 6 month cycle. An ETI refund would only be paid if an employer was tax compliant. This means that all tax returns must have been submitted and there should have been no outstanding tax debt when the employer s reconciliation documents (EMP501 and IRP5/IT3(a)s) were received and processed by SARS. If the employer was not tax compliant, the excess amount would have been reimbursed when the employer became tax compliant. If the employer failed to be tax compliant within the next six months, the excess amount would have been permanently lost. From 2017 onwards this is still applicable. From March 2017 If the employer does not claim the ETI amount they are entitled to within the 6 month cycle (for example they forgot to or any other case), then the ETI will be nil (0.00) after the 6 month cycle and the employer will not receive ETI as a refund and cannot back-date the ETI claims if the 6 month cycle has elapsed. This is only applicable when the employer did not claim the ETI amount they are entitled to. If the employer does not claim the ETI amount due to the fact that the ETI amount exceeds the employees tax due for the month or due to the fact that the employer is not tax compliant, then the ETI brought forward amount will still be 0.00 in the months following the 6 month cycle (March and September) but the employer will still be eligible to claim the excess ETI amount as a refund after the 6 month cycle (only if the employer is compliant). Please Note: It is our understanding that this is what is implied with the amendments in the legislation. We are in the process of confirming whether our interpretation is in line with SARS s. Release Notes 4.8a Page 17 of 81

18 2.0 RSA: Employment Tax Incentive (ETI) Amendments in the System (Classic/Premier) 2.1 Important Notice When you access any RSA Tax Country after converting to Release 4.8a, the following Important Notice will be displayed (irrespective of the processing period): The <Print> button allows you to print this screen for easy reference. This message will continue to appear until you tick that you have acknowledged the message. This action will be recorded on the Audit Trail. This message points you to the ETI Setup Screen and you can click on the <Guidelines> button for more information on the steps to follow to review your Company s current ETI setup. 2.2 ETI Setup Once your company is in March 2017, a new Menu option is available to give you easy access to amend the ETI setup after conversion: Main Menu > Company > ETI Setup Release Notes 4.8a Page 18 of 81

19 Access Control Access Control to this screen is determined by: Company > Access Control > Advanced Access Control > Advanced Page 1 > Basic Company Information: View Access: None of the options on the ETI Company Setup (tick boxes, radio buttons, table selections) can be changed, all can be viewed. The Check Wage Regulating Measurement can be accessed and be Exported Guidelines Please click on the <Guidelines> button for more details ETI Company Setup When you click on this button you will be taken to the Employee Tax Incentive Tab, also found from Main Menu > Basic Company Information > Employee Tax Incentive Tab. Release Notes 4.8a Page 19 of 81

20 Removed Irrespective of which pay period the company is in, the Leave Pay option is no longer displaying, because it is irrelevant. Guidelines Click on the <Guidelines> button for more information. Step 1: Indicate where the Rate per Hour is stored for Employees with a Wage Regulating Measure This will either be on the Increase or on the Calculation Screen. Increase Screen: Selecting this option will use the Rate per Hour from the Increase Screen. Calculation Fields: Selecting this option will use the value from the flagged lines on the Calculation Screen table below. Select Actual Rate per Hour which will reflect as a Y. Release Notes 4.8a Page 20 of 81

21 Step 2: Define the Wage Components The Wage Components will be defined on the Earnings and/or Calculation Screen. Earnings: Select Yes in the Incl Wage column Calculation Screen: Select Wage Component that will reflect as a W. Step 3: Indicate where the Employed and Remunerated Hours for ETI Employees are stored in this company The Employed and Remunerated Hours must be completed for Wage Regulating and for Non-Wage Regulating Employees. Actual Monthly Hours Worked According to the ETI Act a full month is at least 160 hours. To establish whether a Grossup calculation should be done, we need to establish whether the employee worked at least 160 hours for the full month or part of the month. Permanent Employees: Contractual Hours will be used if the Employee is paid for the full month. However, if the employee is paid for less than the contractual hours (this can be due to unpaid leave, no work, shift workers, etc.) then the contractual hours must be reduced by the unpaid hours (i.e. actual monthly wage paid hours). Temporary Employees: Employee are typically ticked for Employee Works Irregular Hours. The calculated hours entered here will be Ordinary Hours plus Additional Hours of work with Unpaid Hours excluded. However, you can also simply use the Define or Import options in this section for these Employees. Release Notes 4.8a Page 21 of 81

22 Terminated and New Employees that do not work a full Month: The Days Worked for the Month, which have been entered, are multiplied by the Hours per Day on the Increase Screen to determine the Actual Monthly Hours Worked. The Employed and Remunerated Hours can be stored in one of these ways: Use the Increase Screen Working Hours per Month/Period: The Increase Screen Working Hours per Month/Period will be used for the Ordinary Hours. These hours will be reduced with any Unpaid Days or Hours as indicated on the Calculation or Hours Screen tables. These hours will be increased with any Additional Hours or Days as indicated on the Calculation or Hours Screen tables. Define Hours on the Hours and/or Calculation Screen table: Define where Ordinary, Additional and Unpaid Hours or Days are saved: Additional Days (will reflect as B ) Additional Hours (will reflect as A ) Ordinary days of work (will reflect as D ) Ordinary hours of work (will reflect as H ) Not Linked (will reflect as N ) Unpaid Days (will reflect as V ) Unpaid Hours (will reflect as U ) Please Note: Additional, Ordinary or Unpaid Days will be multiplied by the number of Hours per Day on the Increase Screen. The hours will be used in calculations. Import Hours to the Employee ETI Screen: When this option is selected, any selections made under Hours will be ignored. A new menu option is available under Interfaces > Import Data > ETI Hours Import (see Import ETI Hours below) to import the Employed and Remunerated Hours. Audit Trail All selections made on this screen are recorded on the Audit Logger File. Release Notes 4.8a Page 22 of 81

23 2.2.3 Check Employee Wage Regulating Measure When you click on this button you will be taken to a list of all the employees in the company, indicating all the employees currently flagged for Wage Regulating Measure on the Employee ETI Screen. This is so that you can check that the conversion did the allocation correctly. You can print this list or export it to Excel to simplify sorting. If there are any errors you can use the Global Activation (discussed further down) to correct it. 2.3 Employee Tax Incentive Tab A number of new fields have been added to the Employee Tax Incentive Tab to cater for the amendments. Release Notes 4.8a Page 23 of 81

24 2.3.1 ETI Engagement Date The ETI Engagement Date field has been added to cater for cases where a company employs an employee who used to work at an affiliated company. In this instance the ETI Period Count and Set should also be transferred. The ETI Engagement Date will be displayed in any Pay Period once Release 4.8a has been installed. When adding a new Employee, this field will automatically default to the Date Engaged. However, it can be changed to be a date prior to the Date Engaged. When the Date Engaged of an existing Employee is modified, a warning message will display, reminding you to check the ETI Engagement Date on the ETI Tab. Changes made to this field will be recorded on the Audit Logger File. The date cannot be: After the Period End Date Later than the Termination Date of an Employee The ETI Engagement Date will also be displayed on the Employee ETI History Screen. Please Note: This field can also be imported via the Flexi Fixed Information Utility. Release Notes 4.8a Page 24 of 81

25 2.3.2 Wage Regulating Measure Once the Company is in the 2017/2018 Tax Year, the Wage Regulating Measure field will be displayed. If this option is ticked, it indicates that the employee works in an industry or is doing a job that is regulated by Wage Measures. Conversion At conversion, if the Employee is not linked to a Minimum Wage Code or if the Employee is linked to the VIP Standard #001 Code, the Wage Regulating Measure will not be ticked. At conversion, if the Employee is linked to a Minimum Wage Code, the Wage Regulating Measure will be ticked. In both these instances, you can tick or untick the default Wage Regulating Measure or amend it globally (See Global Activation further down). Changes made to this field will be recorded on the Audit Logger File Employed and Remunerated Hours (Rem) The Employed and Remunerated Hours (Rem) will display in any Pay Period once Release 4.8a has been installed. If the Import Hours option has been selected on the ETI Setup Tab (as from 2017/2018 Tax Year), then this field will be enabled. The Actual Remunerated Hours, as defined on the ETI Setup Tab, will display in this field. Remuneration Hours will be used for the Gross-up Calculation of Remuneration for ETI calculation purposes. If the Employee is ticked for Irregular Hours, the Employed and Remunerated Hours (Rem) field will not be displayed, and the Irregular Hours Setup will be used for Remuneration Hours. If the Employee is New or Terminated and is not employed for the full month, then you can enter the Days Worked in this Month at the bottom left hand side of the screen. If Days are entered, then the Hours as setup on ETI Setup Screen will be ignored for the current month Employed and Remunerated Hours (Wage) The Employed and Remunerated Hours (Wage) will display in any Pay Period once Release 4.8a has been installed. If the Import Hours option has been selected on the ETI Setup Tab (as from 2017/2018 Tax Year), then this field will be enabled. The Actual Wage Hours, as defined on the ETI Setup Tab, will display in this field. Wage Hours will be used in the Gross-up Calculation for the Wage Qualifying Test. Release Notes 4.8a Page 25 of 81

26 If the Employee is ticked for Irregular Hours, the Employed and Remunerated Hours (Wage) field will not be displayed, and the Irregular Hours Setup will be used for Wage Hours. If the Employee is New or Terminated and is not employed for the full month, then you can enter the Days Worked in this Month at the bottom left hand side of the screen. If Days are entered, then the Hours as setup on ETI Setup Screen will be ignored for the current month Number of days worked in this Month Message We have added a message to remind you to enter the pro-rata days for Employees who have not worked a full month, due to being a New or Terminated Employee. Please Note: This field can also be imported via the Flexi Fixed Information Utility. If you add an Employee with a Date Engaged that starts after the Month Start Date, when you are on the Employee ETI Tab, the following message will be displayed: If you select <Yes> the cursor will go straight to the Number of days worked in this Month entry field. You will not be forced to enter days. If you terminate an Employee with a Termination Date earlier than the Month End Date, we have added the same message. If you select <Yes> the Number of days worked in this Month entry field, will be displayed, from the Employee ETI Tab, for easy entry: Please Note: It is the DAYS worked in the MONTH that must be entered here. The days will be multiplied by the Working Hours per Day on the Increase Screen to calculate a prorata ETI value for the period. Release Notes 4.8a Page 26 of 81

27 2.4 Employee ETI History Screen The Employee ETI History Screen is accessed from the Payslip Screen by clicking on the <ETI> button on the top ribbon Summary Tab The Monthly Incentive Table has been adjusted by a cent in all three the brackets Detail Tab The new fields added to the Employee ETI Screen have also been added to the History Screen: ETI Engagement Date Wage Regulating Measure Employed and Remunerated Hours Min. Wage and ETI Actual Wage (Non-wage Regulating Measure Employees will now display the wage instead of the Rate) or Min. Rate and ETI Actual Rate (Wage Regulating Measure Employee remains unchanged) Release Notes 4.8a Page 27 of 81

28 Employee ETI History Screen for Wage Regulating Measure Employee: Employee ETI History Screen for Non-Wage Regulating Measure Employee: Release Notes 4.8a Page 28 of 81

29 Wage Qualifying Test The calculation for Employees with a Wage Regulating Measure have remained unchanged: the Minimum Wage Rate is compared to their Wage Rate. If their Wage Rate is equal to or more than the Minimum Wage Rate = they pass the Wage Qualifying Test. Please Note: If the Employee is being paid an adjusted Rate per Hour in any month, it is important to adjust the Rate accordingly in the field as specified on the ETI Setup Screen, to ensure the Wage Qualifying Test is done correctly. The calculation for Non-Wage Regulating Measure Employees has changed: Calculate Total of Wage Components as defined on the ETI Setup Screen. Compare Total of Wage Components with R2000. If the Total Wage Components are R2000 or more, then the Employee passes the Wage Qualifying Test. If the Total Wage Components are less than R2000, calculate the Total Actual Hours worked, according to: New or Terminated Days Worked for the Month (multiplied by Working Hours per Day on the Increase Screen), or As defined for Irregular Hours, or As defined on the ETI Setup Screen Divide by 160 (expected Hours worked in a month) to calculate a Factor. If the Factor is 1 or more, then the Employee fails the Wage Qualifying Test If the Factor is less than 1, then use the Factor to do a Gross-up calculation Gross-up calculation = Actual Wage / ETI Factor If the answer is R2000 or more, then the Employee qualifies for ETI If the answer is less than R2000 then the Employee fails the Wage Qualifying Test ETI Remuneration Calculation The value for ETI Remuneration is still determined according to the ETI Definitions Set-up Screen (Main Menu > Payroll > Definitions > ETI Definitions). Calculate the Total ETI Remuneration Apply the Factor used in the Wage Qualifying Test to calculate the ETI Remuneration If the ETI Remuneration is R6000 or more, no ETI is calculated If the ETI Remuneration is less than R6000, refer to the ETI Monthly table to calculate the ETI Tax Incentive value Please Note: If an Employee has no Actual Wage but receives Remuneration (Other Taxable Earnings + Taxable Company Contributions + Fringe Benefits) for the month (e.g. Employees on Maternity Leave, or Commission only earners), then the Employee fails the Wage Qualifying Test and no ETI Tax Incentive will be calculated. Release Notes 4.8a Page 29 of 81

30 2.5 Global Activation of Wage Regulating Measure You are able to activate or deactivate the Wage Regulating Measure Tick globally. Payroll > Global Activation > ETI > Wage Regulating Measure You can select to apply the change to all Employees or to Employees linked to a specific Wage Code. 2.6 ETI Employed and Remunerated Hours Import If you have selected Step 3: Import Hours to the ETI Screen on the ETI Setup Screen, this menu option becomes enabled: Main Menu > Interfaces > Import Data > ETI Hours This feature allows you to Import or Export the Wage and Remunerated Hours for the Current Pay Period, using an Excel Spreadsheet Import Access Control Company > Access Control > Advanced Access Control > Advanced Page 3 > Batch Entry / Import (Full Access) or Company > Access Control > Basic Access > Employee > Salary Information. When you click on Import the following screen is displayed: Release Notes 4.8a Page 30 of 81

31 Please read the <Guidelines> to ensure the import file is compiled correctly (the import and export file should be in the same format. The default file name is IMP-ETI.CSV. Please Note: Hours cannot be imported for Employees set up for Irregular Hours nor for New or Terminated Employees where Days have been captured. If there are any such Employees in the import file, they will be listed on an Exception Report Export Access Control There is no Access Control for the Export of ETI Hours. When you click on Export the following screen is displayed: Release Notes 4.8a Page 31 of 81

32 Destination for export file: Defaults to the current payroll directory. Export file: Provide a name for the export file with the extension.csv. Range of Employees: You can export for All Employees or for specific Analysis Codes. Export Employees: You can export for All Employees or for a specific Employment Status. Sort Sequence: You can sort according to the following options: Release Notes 4.8a Page 32 of 81

33 Once the file has exported successfully, a message will display indicating the number of records exported. The CSV file, as defined, is saved to the specified destination and the following message is displayed: If you select <No>, you will be taken back to the Main Menu and the CSV file is saved in the specified directory. If you select <Yes>, Excel will open and you will need to browse for the exported CSV file. 2.7 ETI History Export Up until now, importing ETI History for take-on purposes has been a tedious task. To simplify this process we have created an ETI History Utility Export Export You can access the ETI History Export in two ways: Main Menu > Interfaces > Import Data > Utility Imports > ETI Take-On An additional selection screen has been inserted here: Select Export Release Notes 4.8a Page 33 of 81

34 Main Menu > Interfaces > Export Data > ETI History Export Year: Select the year for which information must be exported. Destination for export file: Defaults to the current payroll directory. Export file: Provide a name for the export file with the extension.csv. Range of Employees: You can export for All Employees or for specific Analysis Codes. Export Employees: You can export for All Employees or for a specific Employment Status. Sort Sequence: You can sort according to the following options: Release Notes 4.8a Page 34 of 81

35 Once the file has exported successfully, a message will display indicating the number of records exported. The CSV file, as defined, is saved to the specified destination and the following message is displayed: If you select <No>, you will be taken back to the Main Menu and the CSV file is saved in the specified directory. If you select <Yes>, Excel will open and you will need to browse for the exported CSV file. All the ETI History information for the selected year will be exported in the correct format Import You can now modify the data, as required, save it as a CSV file and import the amended data into the payroll system. Please Note: If you create an import file, from the export, you can save the CSV file with headings. The import will ignore the headings and counts the position of the data instead. The Import has been amended to cater for the new fields that are now displayed on the ETI History Screen: ETI Engagement Date Wage Regulating Measure Employed and Remunerated Hours (Remuneration Hours) Employed and Remunerated Hours (Wage Hours) Please Note: Refer to the Guidelines for more details. 2.8 ETI Validation Report (Real Number 767) The ETI Validation Report will print employees who have an ETI Comment on their ETI History Screen, due to them having no ETI Incentive calculated for the month. Release Notes 4.8a Page 35 of 81

36 You can print the report for a specific Range of Analysis Codes or Employee Codes. The types of Employees without ETI that can be printed are: Print ALL Employees (without ETI) Print ACTIVE Employees (without ETI) Print TERMINATED Employees (without ETI) Print NEW / TERMINATED in the Current Period Employees (without ETI) Checklist Control This report has been added to the Checklist Control, found under the Company menu option on the Main Menu, during conversion. If you have selected to enable the Checklist Process, the ETI Validation Report will need to be printed. Release Notes 4.8a Page 36 of 81

37 3.0 RSA: Statutory Changes (Classic/Premier) The Taxation Laws Amendment Act, 2016 and the Tax Administration Amendment Act, 2016 were promulgated on 19 January 2017 in Government Gazette and It contains the following changes as of March 2017, except where mentioned otherwise. Another source of information is the National Budget Speech, 22 February Tax Table Changes When you installed Release 4.8a, the new Tax Rates were applied retrospectively to 1 March This means that if the update was loaded after the first pay period to which the new Tax Rates apply, the Tax would be recalculated as from the first pay period in March 2017, and the change has been applied in the period in which you installed the Release. Taxable Income (R) Fixed Amount Rate of Tax (R) % of taxable income % of taxable income above % of taxable income above % of taxable income above % of taxable income above % of taxable income above and above % of taxable income above Tax Rebates Primary Secondary (Persons 65 and Older) Tertiary (Persons 75 and Older) Age Tax Thresholds Below age Age 65 to below Age 75 and over Personal Service Providers - Companies 28% Personal Service Providers Trusts 45% Medical Aid Tax Credit Release Notes 4.8a Page 37 of 81

38 Main Member 303 First Dependant 303 Additional Dependants 204 You can view the Statutory Rates of Tax by clicking on the <TXB> button on any Employee s Tax Screen. The new Tax Deduction Tables will also be applied to R.S.A. Dormant Companies that are in the Tax Year. 3.2 Other Tax Changes Affecting Payroll Directors Deemed Remuneration Before March 2017 Directors of private companies (and members of closed corporations) were taxed on the greater of actual or deemed remuneration. Deemed remuneration was calculated as the: previous year s remuneration, or if not available - the year prior to the previous year s remuneration plus 20%, or if not available - an amount acquired by applying for a SARS directive. From March 2017 Deemed remuneration will be repealed and directors of private companies (and members of closed corporations) will only be taxed on their actual remuneration Retirement Funding Income (RFI) Definition Currently employer contributions towards a defined benefit or hybrid fund on behalf of the employee results in: a fringe benefit amount calculated using the formula: X = (A X B) C, where: A is the fund member category factor (indicated on the Contribution Certificate) B is the employee s RFI amount, and C is total employee contribution amount (excluding voluntary/additional and buyback/arrears contributions). Before March 2017 RFI (retirement funding income) referred to remuneration as defined in the Fourth Schedule (which included only the taxable % of a travel allowance, company car and a public office allowance) on which the employer contribution towards the pension/provident fund was based on. Therefore RFI only included the 20%/80% or 100% of a travel allowance or company car and 50% of a public office allowance. Remuneration can be different from employee to employee, depending on the taxable % of travel allowance which resulted in a situation where two members of the same fund (defined benefit or hybrid) with the same contribution values had a different RFI value and therefore a different fringe benefit value. Release Notes 4.8a Page 38 of 81

39 From March 2017 RFI will be defined as income (taxable earnings + taxable perks + taxable company contributions), however it will include the full value of a travel allowance, company car and a public office allowance on which the employer or pension fund or provident fund contribution towards the pension/provident fund is based on. To clarify the new proposed legislation: RFI will include 100% of a travel allowance or use of a motor vehicle perk and 100% of a public office allowance and not only the taxable value anymore. To ensure RFI is calculated when the fund itself contributes the retirement fund contribution on behalf of the members/employees to the fund. This means there will also be a fringe benefit amount even though it is the fund that actually contributes. Example of RFI before and from March 2017: Example: Pension CC is based on Salary and Travel (80% taxable) Description Total earnings RFI (before March RFI (from March of employee 2017) 2017) Salary R R R Travel (80% R2 000 R1 600 R2 000 taxable) Bonus R Total R R R Other Tax Changes Not Affecting Payroll Subsistence Allowances and Advances Where the recipient is obliged to spend at least one night away from his/her usual place of residence on business and the accommodation to which that allowance or advance is granted to pay for: meals and incidental costs, an amount of R397 per day is deemed to have been expended; incidental costs only, an amount of R122 for each day. The rate for foreign travel will be gazetted soon and can be found on under the Legal and Policy tab. Release Notes 4.8a Page 39 of 81

40 3.3.2 Table for Calculation of Rate per km\travel Allowance Value of the Vehicle (Including VAT) (R) Fixed Cost (R p.a.) Fuel Cost (c/km) Exceeding Maintenance Cost (c/km) Prescribed Rate for Re-imbursive Kilometres The SARS prescribed rate per kilometre increased from R3.29 to R Remuneration Proxy Currently the remuneration proxy is used in 3 areas of employment tax: The tax exemption rules for bursaries granted to a relative of an employee by an employer. The acquisition of immovable property. The residential accommodation fringe benefit value. Before March 2017 Remuneration proxy was defined as Fourth Schedule remuneration but excluding the residential accommodation fringe benefit value. From March 2017 Remuneration proxy will be remuneration defined in paragraph 1 of the Fourth Schedule and will only exclude the residential accommodation fringe benefit value when calculating the residential accommodation fringe benefit. Remuneration proxy will include the residential accommodation fringe benefit value when calculating: the tax exemption for bursaries granted to a relative of an employee by an employer and the acquisition of immovable property. Release Notes 4.8a Page 40 of 81

41 3.3.4 Employer Provided Bursaries A scholarship or bursary granted by the employer (or associated institution in relation to the employer) to a relative of an employee was subject to the following conditions: The scholarship or bursary was not exempt if the remuneration proxy exceeded R If the remuneration proxy did not exceed R , then the first R of a scholarship or bursary in respect of grade R to grade twelve or a qualification to which an NQF level from 1 up to and including 4 has been allocated was exempt from normal tax. If the remuneration proxy did not exceed R , then the first R of a scholarship or bursary in respect of a qualification to which an NQF level from 5 up to and including 10 has been allocated was exempt from normal tax. Change: Backdated to March 2016, the exemption thresholds for bursaries granted by the employer (or associated institution in relation to the employer) to a relative of an employee have increased to the following amounts: The scholarship or bursary is not exempt if the remuneration proxy exceeds R If the remuneration proxy does not exceed R , then the first R of a scholarship or bursary in respect of grade R to grade twelve or a qualification to which an NQF level from 1 up to and including 4 has been allocated is exempt from normal tax. If the remuneration proxy does not exceed R , then the first R of a scholarship or bursary in respect of a qualification to which an NQF level from 5 up to and including 10 has been allocated is exempt from normal tax. Please Note: The new thresholds must be backdated to March Reimbursive Travel Allowance From March 2017 The simplified method for business kilometres travelled in the application of section 8(1)(b)(ii) of the Income Tax Act is as follows: Report the reimbursive travel allowance on the tax certificate against code 3703 if: the rate of reimbursement is less than the prescribed rate, and less than business kilometres (previously business kilometres) are reimbursed in the tax year, and no travel allowance is paid in addition to the reimbursed amount. Report the reimbursive travel allowance on the tax certificate against code 3702 if: the rate of reimbursement exceeds the prescribed rate, or more than business kilometres (previously business kilometres) are reimbursed in the tax year, or a travel allowance is paid in addition to the reimbursed amount. Release Notes 4.8a Page 41 of 81

42 3.3.6 Certain Dividends Included in Remuneration From March 2017 The definition of remuneration is expanded to include certain dividends from restricted equity instruments (section 8C shares). PAYE should be deducted from dividends as specified in paragraph (dd), (ii) and (jj) of the proviso of section 10(1)(k)(i). Currently it is unclear if the employer should also apply for a directive, but we assume the PAYE amount will be acquired by applying for a directive, the same manner in which the employer should currently apply for a section 8C share amount when vesting and/or on any return of capital. We will, however, communicate the information once we have final confirmation. There is also a possibility that SARS will create a new IRP5 code/s for these dividends. Once SARS has released the new PAYE Business Requirement Specifications document, we will be able to confirm this. Please note that this amount will be included in the SDL, UIF, ETI remuneration and remuneration for the purpose of calculating the tax benefit for contributions towards retirement funds. Please Note: We advise employers to consult their auditor or a tax consultant to confirm whether the dividends from restricted equity instruments are exempt or included in remuneration Value of B in the Residential Accommodation Fringe Benefit Calculation Please note that the value of B for the purpose of calculating the fringe benefit value for free or cheap residential accommodation was not mentioned in the 2017 budget speech. However, R is the new tax threshold and is usually the value of B in the calculation. Please Note: This value has not yet been promulgated. Release Notes 4.8a Page 42 of 81

43 4.0 Africa: Ghana Change to SSNIT Tier 1 (Premier) The maximum Basic Salary on which the SSNIT Tier1 contribution is based has increased from GHC to GHC , effective 1 January An amendment has been made to the Ghana Tax Tables to incorporate the new maximum value and the revised Tax Tables were sent to all our Ghana clients in January. However, if you did not install this file (Ghanatax.zip) the changes are also part of this release and will then be applied as from the pay period in which you installed this release. Please Note: If you have any queries concerning backdating this information, please contact your Africa Support Consultant. Release Notes 4.8a Page 43 of 81

44 5.0 Africa: Kenya Tax Tables (Premier) Statutory changes effective 1 January 2017 have been published in the Kenya Gazette Supplement, Acts, (No. 159, Acts No.38). These changes have been sent to all our Kenya clients in January. However, if you did not install this file (AfrTax_R47a_ zip) the changes are also part of this release and will then be applied as from the pay period in which you installed this release. Please Note: If you have any queries concerning backdating this information, please contact your Africa Support Consultant. The change listed below affects payroll processing: The Resident Personal Relief increased from KShs1 162 per month to KShs1 280 per month. The maximum deduction for Owner Occupied Interest Paid increased from KShs to KShs per year. The Annual Tax Rates has changed. Annual Tax Table effective January 2017 Income Band (KShs) Rate First % Next % Next % Next % Over % Release Notes 4.8a Page 44 of 81

45 6.0 Africa: Nigeria Social Insurance Trust Fund (Premier) In January we sent out a notification to all our Nigeria clients concerning changes that they need to make to their Company setup. However, if you did not apply these changes yet, then they need to be implemented as from the pay period in which you installed this release. Please Note: If you have any queries concerning backdating this information, please contact your Africa Support Consultant. The Nigerian Employers Consultative Association (NECA) and the NSITF have signed a Memorandum of Understanding that gives, among other things, an acceptable definition of payroll. According to the Employee Compensation Act of 2010, the NSITF Contribution is 1% of total monthly payroll. Current Payroll Setup Payroll is not defined in the Act. However, there is a definition of remuneration. In 2011, the NSITF and NECA agreed that the NSITF Contributions should be based on 1% of Total Emoluments. According to the agreement the Total Emoluments was defined as the sum of Salary, Transport and Housing Allowances. The New Agreement The NSITF Contribution is still 1% of payroll. The definition of remuneration provided in the Act will be applied in the place of payroll. Remuneration means Basic Wages, Salaries or Earnings designated or calculated, capable of being expressed in terms of money and fixed by mutual agreement or by law which are payable by an employer to an employee for work done or to be done or services rendered or to be rendered: and Allowances which include Rental, Transport, Meals and Utility or other allowances as may be determined by the Board, from time to time. It was agreed upon that the definition of remuneration provided above excludes the following income: Pension Contributions Bonuses performance related payments Overtime payments Irregular once off payments Our interpretation of the above is that the NSITF contribution is based on the fixed/regular earnings of the employee. Fringe Benefits, Employer Contributions and Statutory Contributions are not considered remuneration. Please Note: If your Employees do not receive any other fixed/regular earnings in addition to the Basic Salary, Housing and Transport Allowances, then you do not need to make any changes to the system or reports. Release Notes 4.8a Page 45 of 81

46 6.1 Payroll Changes Add Regular Earnings to the Calculation of NSITF Now that the NSITF is no longer based on just Basic Salary, Housing and Transport Allowances, the definition screens have to be updated and the Reports Setup Screen for the NSITF Report needs to be adjusted to reflect all the earnings which the NSITF Contribution is based on. From the Main Menu click on Payroll > Definitions > Earning Definitions Click on the <Change Mode> button in the bottom left hand corner In the NSITF column select Y for all the additional earnings you would like to add Please Note: Only Earnings of a regular nature will be included in this calculation. Fringe Benefits, Employer Contributions and Statutory Contributions are not considered Remuneration. Specifically excluded is Pension Contributions, Bonuses, Overtime and Irregular/Once-off payments Amend Report Setup After the definition screen has been updated you need to update the NSITF Contribution Report Definitions From the Main Menu click on Reports > Nigeria Reports > NSITF (Actuals and Budget) > Report Setup Add the additional earnings you flagged for NSITF on the Earning Definitions Screen Release Notes 4.8a Page 46 of 81

47 7.0 Africa: Zambia Statutory Changes (Premier) Zambia s 2017 National Budget was delivered to the National Assembly by the new Minister of Finance, Honorable Felix Mutati, MP on Friday 11 November These changes have been sent to all Zambia clients in January However, if you did not implement this yet, these changes are also part of this release and will then be applied as from the pay period in which you installed this release. Please Note: If you have any queries concerning backdating this information, please contact your Africa Support Consultant. 7.1 Skills Development Levy The Skills Development Levy Act, 2016, was assented by the President of Zambia on the 27th of December 2016; and it shall come into operation from 1st of January, This Act introduces a new Statutory Contribution for employers in Zambia. Contributions Contribution is 0.5% of the Gross Emoluments payable to an Employee including a Casual Employee. This is only paid by the Employer and contributions are made on a monthly basis. Basis of the Contributions Emoluments means any Salary, Wage, Overtime or Leave Pay, Commission, Fee, Bonus, Gratuity, Benefit, Advantage (whether or not that advantage is capable of being turned into money or money s worth), Allowance, including Inducement Allowance, Pension or Annuity, paid, or granted in respect of any employment or office, whether engaged in or held. Please Note: According to the SDL Act, Emoluments exclude any amount paid to an Employee by way of Pension Benefit. Pension Benefit includes any Pension, Compensation, Gratuity, Severance Pay, Repatriation and other similar Allowances received in respect of a person s services at cessation of employment or expiry of contract. Exemptions The levy is not payable by: An employer in the public service or a local authority An employer whose annual turnover is below K ; and A public benefit organization (PBO) approved as such under the Income Tax Act (ITA) Administration and Payment of Contributions The due date for payment and return filing of SDL is the 10th of the month following the month in which the SDL becomes due. The SDL will be paid into the Technical Education, Vocational and Entrepreneurship Training Authority Fund. However, the SDL remittance shall be collected by the ZRA. Release Notes 4.8a Page 47 of 81

48 SDL will be administered under the ITA. Penalties under the ITA will be applicable for noncompliance. Late return filing and payment of SDL would attract penalties and interest as provided for under the Income Tax Act. Please Note: The SDL Definition Line and the Method of Calculation needs to be added manually. Please call your Africa Support Consultant for assistance. 7.2 NAPSA Ceiling Increase As from 1 January 2017, the new NAPSA ceiling is K The maximum an Employee or Employer will contribute per month at 5% this year is K Please Note: The adjustment to your NAPSA Method of Calculation to align with the new ceiling needs to be done manually. 7.3 New PAYE Tax Tables The Minister proposed an increase to the exempt threshold for Pay As You Earn (PAYE) from K3 000 to K3 300 per month; as well as an increase to the top marginal tax rate from 35% to 37.5% Annual Income From (K) To(K) Tax Rate , % 39, , % 49, , % and above 37.50% 2016 Annual Income Tax Rate From (K) To(K) , % 36, , % 45, , % and above 35% Release Notes 4.8a Page 48 of 81

49 8.0 Budget Module- mscoa (Premier) The following section will only apply to you if you are licensed for Job Management and Extended GL and the Extended Flexi General Ledger and Cost Screen must be selected on the Company Miscellaneous Screen. This feature is specifically used by the Municipalities in RSA, but is available to everyone. The minimum requirements of the mscoa Budget Module has been published. We reviewed the current Budget Module in the light of the new requirements and realised that we need to make a few amendments. We also received some feedback on the module after implementation at one of our Municipalities and realised that we need to cater for Global Increases on Budget Values. 8.1 Increase of Budget Information per Job Up until now the options on the screen allow you to create a Budget for a new year by copying the values of the current Budget Year to the Next Budget Year and then applying an Increase Percentage. To access the Budget Screen: Main Menu > Personnel > Job Management > Change Job Code Definitions The following enhancements have been made: Release Notes 4.8a Page 49 of 81

50 The Budget Value can be increased from a specific calendar month onwards, e.g. the Financial Year runs from July to June, but we give increases in January, Calendar Month one. Therefore, I only want to increase salary values from January to June. You can create Budget Values for multiple years by selecting a From Fin Year and a To Fin Year. If the From Fin Year is equal to the To Fin Year then the values already loaded on the Budget should be increased with the percentage selected. If the From Fin Year is unequal to the To Fin Year then the values from the From Fin Year will be copied to the To Fin Year and an increase percentage will be applied from the Calendar Month as specified. A Fin Year can be copied to another Fin Year with 0% increase as well. Please Note: You have to click in the % Increase field for the increase process to start. When you click in the % Increase field, a message will prompt you concerning what to do next: You will only be able to copy the Current Tab, i.e. Earnings or Deductions or Company Contributions at a time. You can either select Specific lines or All lines to be increased. Please Note: The Budget Years can only be increased one by one, multiple years cannot be increased simultaneously. 8.2 Global Budget Increase The Global Budget Increase will assist you to simplify the setup of Budgets and to increase values without accessing every individual Job. Global Budget Increase is found under a new menu option: Main Menu > Personnel > Job Management > Global Budget Increase Release Notes 4.8a Page 50 of 81

51 All the available Jobs in the company are listed. Select Job Codes and Definition Lines You can select the applicable Jobs by changing the N flag to a Y flag in the Include column. Alternatively, you can tick or untick Select All Job Codes. You can filter the Jobs you want displayed to simplify the selection list. Select either Earnings, Deductions or Company Contributions to be changed. All the defined lines for the Definition set you selected will be listed. You can select the applicable Descriptions by changing the N flag to a Y flag in the Include column. Alternatively, you can tick or untick Select All Lines. Select Increase Percentage and Period Enter the Increase Percentage. From Calendar Month indicates the first month within the Financial Year where the increase should be applied. e.g. the Financial Year runs from July to June, but we give increases in January, calendar month one. Therefore, I only want to increase salary values from January to June. You can create Budget Values for multiple years by selecting a From Fin Year and a To Fin Year. If the From Fin Year is equal to the To Fin Year then the values already loaded on the Budget should be increased with the percentage selected. Release Notes 4.8a Page 51 of 81

52 If the From Fin Year is unequal to the To Fin Year then the values from the From Fin Year will be copied to the To Fin Year and an increase percentage will be applied from the calendar month as specified. If the Increase % is 0, the From Fin Year will be copied to the To Fin Year without any changes. Please Note: When All Job Codes are selected and the current Financial Year s Budget Values are zero, the selected Job Codes with zero values will be forced back to No and a message will be displayed: Please Note: When a Job Code is selected that has no Budget Record, the selection will be forced back to No and a message will be displayed: Release Notes 4.8a Page 52 of 81

53 9.0 Income Verification (Classic/Premier) Income Verification enables organisations to provide their employees payslip information to registered Financial Services Providers (FSP), through a secure platform managed by Sage. Participating FSP s can then access the necessary payslips once the individual provides consent to the FSP during a financial application. 9.1 How it Works Historically, when applying for finance through a Financial Service Provider (FSP), John Brown would have been required to provide 3 months worth of payslips as well as the other legally required documentation (FICA, Bank Statements, ID, etc.). Going forward, if John s employer is participating in the Income Verification programme, then John simply has to give the FSP consent to request the necessary payslips electronically. 9.2 Benefits to Employer and Employee? Income Verification presents a range of benefits to both the company and the individual, including the following: There are no additional costs to the employer or employee. Reduced phone calls from creditors to businesses for verification of employee income. Reduced phone calls from creditors for verification of employment. Stronger compliance to the POPI Act (Protection of Personal Information). Reduces the need to supply physical documentation when applying for credit. Supports responsible lending practices. Reduces the time that employees spend out of the office to complete credit applications. Applications take less time to complete and receive approval from the FSP. Fully automated process. Consent driven program, eliminating abuse and fraudulent requests of information. Independent audits rated the security model of the highest standard internationally. 9.3 Income Verification Setup Process In Non-Monthly Companies, during the Start New Period process to a new Month, and in Monthly Companies during each Start of Period process, the following message will be displayed: Release Notes 4.8a Page 53 of 81

54 If you click on <Yes> the Participate in Income Verification tick on the Company Miscellaneous Screen Tab 4 is activated, the Employee Payslips will be uploaded and the message will not be displayed again. If you click on <No>, the tick is not activated and no Employee Payslips will be uploaded. If you click on <No>, this question will be displayed again for two more Month-ends, appearing three times in total, in each Company. If you answered <No> for three consecutive Month-ends, the question will not be displayed again. Guidelines Click on the <Guidelines> button to open a document containing information on the Income Verification process. You can find the same Guidelines on the Company Miscellaneous Tab 4 Screen:. Release Notes 4.8a Page 54 of 81

55 Main Menu > Company Miscellaneous > Miscellaneous 4 The activation or removal of this tick will be recorded on the Audit Logger File. 9.4 Access Control If the user doing the Start New Period does not have access to the Company Miscellaneous Screen, then the Income Verification Message will not be displayed. Only users with access to the Company Miscellaneous Screen will see the message during the Start New Period process and be permitted to change the Participate in Income Verification tick on the Company Miscellaneous Screen Tab Uploading of Payslips If the Participate in Income Verification tick on Company Miscellaneous Tab 4 is on, then: When printing Normal New PDF Payslips from the system, an indicator will be set to indicate that the Payslips are already created. If the client does not use PDF Payslips, then Basic PDF Payslips will be created during the Start New Period process. All Payslips for Employees with either an ID or a Passport or both, will be saved in a new Data Base: SCExt.vdb4. This DB is created in C:\Users\Username\AppData\Local\Sage Connected Services\Data During Start New Period, the following message will be displayed, when the Payslips are saved to the DB: The local DB will be cleared when the Payslips are successfully uploaded to the secure cloud platform. The Upload of Payslips will be recorded on the Audit Logger File. Release Notes 4.8a Page 55 of 81

56 10.0 Work Address Code (Classic/Premier) The Employee Work Address can either be entered on the Employee Address Tab or by linking the Employee to a Work Address Code. Up until now, the Work Address Code has not made provision for the Country Code. This meant that once you have linked the Employee to the Work Address Code, that you would still need to select or enter the Country Code. Clients kept forgetting to do this, which causes errors when creating IRP5 Certificates in RSA Tax Countries, because it is a mandatory field Work Address System Description Code To access the Work Address System Description Code from the Main Menu: Payroll > Definitions > System Description Codes > Work Address Conversion During conversion, the Country Code field will be added to all existing Work Address Codes that are defined under System Description Codes. The Country Code field will default the Code according to the Tax Country of the Company: ZA - RSA BW Botswana GH Ghana LS Lesotho MZ Mozambique Release Notes 4.8a Page 56 of 81

57 NA Namibia NG Nigeria SZ - Swaziland Please Note: In Other African Tax Country Companies, the Country Code will default to ZA, because it is not possible to default to the actual Country Code. Remember to amend the Country Code by going into the Work Address Code, entering on the Country Code field and selecting the applicable Country Code Adding Work Address Codes When you add a new Work Address Code and you get to the Country Code field, the County Code Look-up List will display and the applicable Country Code, determined by the Tax Country of the Company, will be highlighted. In RSA Tax Countries, the Country Code field is mandatory. In other Tax Countries, this field is optional Employee Address Details Tab If the Employee Work Address is linked to a Work Address Code, then Country Code field will now be disabled, together with the rest of the Work Address entry fields. This is because the Country Code will now display according to the Work Address Code to which the Employee is linked. Release Notes 4.8a Page 57 of 81

58 11.0 Reporting: Swaziland - Country Specific Reports (Classic/Premier) The Country Specific Reports for Swaziland have been added under the Reports option on the Main Menu. The Statutory Reports for the Swaziland Tax Country have been run from the Reports and Maintenance Menu until now. Swaziland customers will have the option to use either the existing reports or the new reports as described in this document. It is advisable to start using the new reports as the existing reports will no longer be maintained. Basic or Advanced Access Control must be set to Report Level 5 to allow access to the Country Specific Reports Screen. Please Note: Only one user can access the Reports Menu for a specific Tax Country at a time. If another user is already printing reports and you try to access the Country Specific Reports Menu, or you select that same Company via the Multiple Company option, you will be stopped with a message Reports Menu All the Statutory Reports that are available for Swaziland Tax Country will be listed on this screen. Release Notes 4.8a Page 58 of 81

59 Print-screen of Swaziland Reports Screen: Before you are able to run a Report, the Report Setup needs to have been completed for that Report. If you select a Report for which you have not yet completed the Setup, a message will be displayed explaining this. Click on the <Report Setup> button. Release Notes 4.8a Page 59 of 81

60 The Magnifying Glass Icon takes you to an explanation of what is included in each of the components of the Report. The groups from which you may select are pre-defined according to mandatory specifications set up per report and could include: Earnings, Deductions, Company Contributions, Perks, Calculations Screen, Own Screen and Hours Screen. These selections are saved when the Report is run. The setup only needs to be done once per Company (if single reports are exported). Please Note: Your selections will be saved. The only time you have to access the Report Setup Screen again is if new Payroll Definitions were added that must be included in the Report. If you feel that there are groups that need to be selected from for a specific report that is currently disabled, click on the <Support Letter> button on the bottom right hand corner of the screen. This will open a VIPSD Password Letter, which you will need to complete and return to Sage Africa Support for further assistance. This will permit us to give you access to the Company to enable the groups you want to access for selection purposes. The print-screen button at the bottom of the screen will print the list of selections made. The reports can be printed for the current Company or for multiple Companies. When selecting multiple companies, all the Companies that are licensed for the same Tax Country as the one you are printing from, are listed on the next screen. The Setup Screen as defined in the Company from where you are printing, will be applied to all the Companies. To print the reports for multiple Companies, the Companies to be consolidated must be in the same processing period and have the same company structure in terms of Earnings, Deductions, Perks and Calculation Definition lines. When consolidating reports for Weekly/Bi-Weekly payrolls with Monthly payrolls, make sure that the Weekly/Bi-Weekly companies are in the last period of the month. Please Note: All reports have the option to print either all applicable employees or a range of employees. The user can select to print per Employee or per Analysis Code. Release Notes 4.8a Page 60 of 81

61 The Reports will be saved either when the.csv file is created in Excel or by clicking on the <Save> button Reports in Excel When clicking on the <Continue> button, Excel will automatically open. Depending on your Excel Macro Security Settings you will then click on the <Enable Content> button, usually found in a yellow line above the worksheet. The user will then be prompted to select the Sage VIP directory. The report will automatically be populated with the applicable values. Once populated you will immediately be requested to select the directory to which this report must be saved and to confirm the report name, which may be edited at this point. To remove the step for click on the <Enable Content> button you can change your Macro Security Settings: In Excel select the Developer Tab on toolbar Select Macro Security Select Macro Settings Select the option Enable All Macros (not recommended, potentially dangerous code can run) Please Note: If the report does not seem to populate correctly, please consult the section regarding the Windows Regional Settings of your computer. Please Note: In order to run the reports successfully the minimum requirement for Microsoft Office Excel is Version 2007 and up. Also ensure that the latest Service Packs and Upgrades\Updates for your Windows and Office versions are installed Audit Log File The Audit Log File will record the Report that has been printed. Please Note: Changes made to the Report Selections will not be recorded on the Audit Log File due to the large number of changes that can be made. Release Notes 4.8a Page 61 of 81

62 11.4 Windows Regional Settings Click on the Start Icon and go to Control Panel. Select the Regional and Language Options. On the Format Tab, it is only important that the Short Date is set to yyyy/mm/dd. Click on the <Additional Settings> button. On the Numbers Tab, it is only important that the Decimal symbol is a full-stop and that the List separator is a comma. Click on the Currency Tab. It is only important that the Decimal symbol is a full-stop. Please Note: The Currency Symbol could differ from country to country, but the default setting can be accepted. Release Notes 4.8a Page 62 of 81

63 11.5 Swaziland Reports The following Reports are available for Swaziland: Report Monthly Quarterly Annual SNPF Report PAYE Monthly Declaration Return X X PAYE 16 PAYE 15 PAYE 05 IRP5 Electronic Submission File X X X X SNPF Report Electronic NPF200 Form The electronic NPF200 Form is created when running this report. The report includes details of employee s statutory and voluntary contributions towards Swaziland National Provident Fund. This form can be ed in Excel format to SNPF or printed on plain paper for manual submission to SNPF. In addition to the initial Report Setup Screen, the report has one other Setup Screen. When running the report you must indicate the following: Graded Tax Number: Select from the dropdown the field used to indicate the employee s Graded Tax Number. The options to choose from are: Deduction Line Reference field Tax Number field Tax Office field PIN Field Used: Select from the dropdown the field used to indicate the employee s PIN\Tax Number. The options to choose from are: Tax Number field Tax Office field Penalty: If any penalties due in the reporting month, you can enter the value in this field. Release Notes 4.8a Page 63 of 81

64 Contact Person: Indicate the full name of the person responsible for submitting this return. Job Title: Indicate the job title of the person responsible for submitting this return. Wage Limit: Do not change the default value of unless the limit is increased as per instructions from the Swaziland Revenue Authority this value is used to apply the maximum value for the Wage amount used in the calculation of the SNPF Statutory Contribution PAYE Monthly Declaration Return This form is a monthly PAYE return and can be submitted electronically if the company is registered for e-tax, otherwise the form can be duplicated out of the payroll system and submitted as is. Income from Lump Sum Payments, such as Notice Pay, Severance Pay, Redundancy Payments etc. should not be included in this return. In addition to the initial Report Setup Selection Screen, the report has one other Setup Screen. When running the report you must indicate the following: Graded Tax Number: Select from the dropdown the field used to indicate the employee s Graded Tax Number. The options to choose from are: Deduction Line Reference field Tax Number field Tax Office field PIN Field Used: Select from the dropdown the field used to indicate the employee s PIN\Tax Number. The options to choose from are: Tax Number field Tax Office field Business Fax Number: Enter the fax number of the company. Penalty: If any penalties are due, you can enter the value in this field. Penalty Month: Select the applicable month when the penalty was due. Interest: If any interests are due, you can enter the value in this field. Interest Month: Select the applicable month when the interest was due. Release Notes 4.8a Page 64 of 81

65 Contact Person: Indicate the full name of the person responsible for submitting this return. Job Title: Indicate the job title of the person responsible for submitting this return PAYE 16 Reconciliation of Tax Deductions Made and of Stock of Certificates on Hand This report is for the reconciliation of Tax Deductions made for the applicable Tax Year and of stock of Tax Certificates. This report can be used to complete the PAYE 16 Form as it must be submitted on pre-printed stationery. In addition to the initial Report Setup Selection Screen, the report has one other Setup Screen. When running the report you must indicate the following: Graded Tax Number: Select from the dropdown the field used to indicate the employee s Graded Tax Number. The options to choose from are: Deduction Line Reference field Tax Number field Tax Office field PIN Field Used: Select from the dropdown the field used to indicate the employee s PIN\Tax Number. The options to choose from are: Tax Number field Tax Office field Contact Person: Indicate the full name of the person responsible for submitting this return. Work Telephone: Enter the work telephone number of the person responsible for submitting this return. Home Telephone: Enter the home telephone number of the person responsible for submitting this return. Cell Number: Enter the cell phone number of the person responsible for submitting this return. Your PAYE Recon Section: The following fields can be completed on this screen or on the manual pre-printed form this section is not mandatory: Release Notes 4.8a Page 65 of 81

66 Receipt Number: Type in the receipt number for each month as provided by the SRA. Date Paid: Select from the calendar or type in the date the payment was made to SRA. Interest: If any interests are due, enter the value in the applicable month. Penalty: If any penalties are due, enter the value in the applicable month. PAYE: Type in the total PAYE paid to the SRA for each specific month. This will include additional tax. Graded Tax: Type in the total Graded Tax paid to the SRA for each applicable month. Total: No input required the system calculates the total value for PAYE, Interest, Penalties and Graded Tax. Reason for Difference in Annual Tax Paid and Payroll: Type in the reason if there is a difference between the PAYE paid over to SRA and the actual value on the payroll for the applicable tax year. Description for Other Amounts: This field refers to any amount not accounted for specifically in the report, but reported in the financial statements as part of the employee cost. An example of what should be included in this field is Lump Sum Payments. Release Notes 4.8a Page 66 of 81

67 PAYE 15 Annual Return of Salaries This report is an annual report with detail per employee of the income earned and taxes paid for the applicable tax year. This form can be printed out of the payroll on normal paper and submitted manually to the Revenue Authority as is. Any income or payments that are exempt from tax must be excluded from this report. In addition to the initial Report Setup Selection Screen, the report has one other Setup Screen. When running the report you must indicate the following: Graded Tax Number: Select from the dropdown the field used to indicate the employee s Graded Tax Number. The options to choose from are: Deduction Line Reference field Tax Number field Tax Office field PIN Field Used: Select from the dropdown the field used to indicate the employee s PIN\Tax Number. The options to choose from are: Tax Number field Tax Office field Business Fax Number: Enter the fax number of the company. Contact Person: Indicate the full name of the person responsible for submitting this return. Class: On the Employee Statutory Detail Screen you must indicate if the employee has a Single or Multiple Sources of Income. To indicate if an employee is a Director, Part- Time or Director then select from the dropdown the field in the payroll used to indicate in which category the employee falls. If the Not Used option is selected the employee will be classified as either Single or Multiple Source of Income as per Employee Statutory Detail Screen. Release Notes 4.8a Page 67 of 81

68 PAYE 05 Employee Tax Certificate This report generates the Tax Certificates. You have the option to print to plain paper or on official pre-printed stationery. No Tax Certificate Numbers are stored on the payroll. In addition to the initial Report Setup Selection Screen, the report has one other Setup Screen. When running the report you must indicate the following: Graded Tax Number: Select from the dropdown the field used to indicate the employee s Graded Tax Number. The options to choose from are: Deduction Line Reference field Tax Number field Tax Office field PIN Field Used: Select from the dropdown the field used to indicate the employee s PIN\Tax Number. The options to choose from are: Tax Number field Tax Office field Type of Stationery: Select one of the following options to indicate on what type of stationery the tax certificates must be printed on: Official Stationery Full Plain Paper PDF Print PAYE Information for: Select if you want to print Tax Certificates for Employees with or without PAYE for the applicable Tax Year. Employee Status to be Printed: Select if you want to print Tax Certificates for: Active Employees Discharged Employees Both of the above Release Notes 4.8a Page 68 of 81

69 To Print 2 Copies per Employee of the PAYE05 Tax Certificate: The PAYE05 Pre-Printed Stationery are packaged as two certificates per Tax Certificate Number the one is the original and the other a copy. When printing to the pre-printed stationery and you have to print two copies, you have to select the following options when printing from Excel: Select to print 2 Copies Select Uncollated so that Excel prints 2 copies of the same certificate before starting the next one. Please Note: The Password requirements if you have selected to print the PAYE05 Tax Certificates to PDF, is as follows: If the employee has an ID Number, we use this as the password. If the employee has a Passport Number, we use this as the password. If no ID Number or Passport Number, then we use the Date of Birth of the employee in date format yyyymmdd IRP5 Electronic Submission File The Swaziland Revenue Authority (SRA) introduced an electronic submission whereby employers can fill in an excel spreadsheet containing the employees details and send it back to the Revenue Authority after Tax Year End. When you make use of this newly designed electronic spreadsheet, tax certificates are not required to be submitted to the SRA. If you still make use of the other forms of reconciliation, the tax certificates must, however, still be submitted to the SRA. The excel file must be ed to info@sra.org.sz. In addition to the initial Report Setup Selection Screen, the report has one other Setup Screen. When running the report you must indicate the following: Release Notes 4.8a Page 69 of 81

70 Graded Tax Number: Select from the dropdown the field used to indicate the employee s Graded Tax Number. The options to choose from are: Deduction Line Reference field Tax Number field Tax Office field PIN Field Used: Select from the dropdown the field used to indicate the employee s PIN\Tax Number. The options to choose from are: Tax Number field Tax Office field Release Notes 4.8a Page 70 of 81

71 12.0 Reporting: Africa New and Changed Reports (Premier) 12.1 Tanzania Form LAPF 10 Report The Local Authority Pension Fund (LAPF) is one of the 5 mandatory Social Security Schemes in Tanzania. Form LAPF 10 is submitted on a monthly basis with detail of the Basic Salary and LAPF contributions per employee. In addition to the initial Report Setup Selection Screen, the report has one other Setup Screen. When running the report you must indicate the following: Department Code: Enter the code indicating the department under which the employer is registered under. Zone/Regional/District Number: Enter the Zone/Region/District in which the employer is registered under. Cheque Date: Enter the date on cheque used for payment to LAPF. Cheque No: Enter the cheque number used for payment to LAPF. Receipt Date: Enter the date on receipt for payment from LAPF. Receipt Number: Enter the receipt number for payment from LAPF. Issued By: Enter the name of the person responsible for submitting this form. Supplementary % for Employee: Enter the supplementary employee contribution percentage only if all employees contribute the same percentage. Supplementary % for Employer: Enter the supplementary employer contribution percentage only if the employer contributes the same percentage for all employees Other Report Changes (Premier / Classic in some instances) Country Report Detail Ghana IT51S Annual Tax Deduction Return Removed this report from the Ghana report menu as this report is not in use anymore. Ghana IT51 Monthly Tax Removed this report from the Ghana report menu as Release Notes 4.8a Page 71 of 81

72 Country Report Detail Deduction Form this report is not in use anymore. Ghana IT51Additional Tax Schedule Removed this report from the Ghana report menu as this report is not in use anymore. Ghana IT53 Cessation of Employment Removed this report from the Ghana report menu as this report is not in use anymore. Ghana IT54 New Employees Removed this report from the Ghana report menu as this report is not in use anymore. Ghana DT0108 Annual Wording on Template was not displaying correctly PAYE Deductions this has been resolved. Return Kenya Cooperative Bank EFT File New Bank File. Kenya P10D Quarterly Return Employer's PIN was not populating resolved. Kenya P9 Tax Deduction Updated with Certificates with the 2017 statutory Cards changes for Personal Relief and Mortgage Relief. Kenya P10 itax Report Updated the column headings with the 2017 statutory limits for Mortgage and Personal Relief values. Lesotho Malawi Malawi Mozambique Mozambique Namibia Zambia Zimbabwe P19 PAYE Monthly Tax Return P9 Tax Certificate P9 Tax Certificate Tax Certificates Relacao Nominal PAYE4 Report P22 Tax Certificate P6 Tax Certificate The summary was printing the correct values but the detail report excludes values for Overtime, Leave Allowances, Supplementary values and Strike amounts. Added a field on the User Form screen to enter the name of the Company Representative this will now print on each Tax Certificate. Added the option to print the P9 Tax Certificates to PDF format. Added fields on the User Form screen to enter the Job Title of the Company Representative and to populate the Posição field with this value. Populated the Computer Date when report was printed in the Data field. The report generated an error when no fields were linked to the selections that indicate the employee s Occupational Professional Level, Grading Level, Occupational Status and Occupational Category issue resolved. For non-monthly companies the current period values were printing instead of the MTD+ values issue resolved. The Gross Pay value was not populating for nonmonthly companies issue resolved. Changed the description of Total Earnings to Total Taxable Earnings. Added a separate field for Bonus Exempt Portion under the Total Earnings section. Exclude the Non-Taxable Earnings and Bonus Exempt portion from total value for Total Taxable Earnings. Release Notes 4.8a Page 72 of 81

73 13.0 Reporting: RSA - UIF Submission Report (Real Number 651) (Classic/Premier) When you do a Live UIF Submission Run, the usual message will display that the file has been created and that it needs to be ed: xxxxxxxx As from this Release, when you click on <Continue> the Report will print and the following message is displayed: If you click on <Yes> an will be created addressed to: declarations@uif.gov.za. The UIF Submission files are already attached to the and the subject of the mail is Declarations. If you click on <No>, the Report will print and you will need to the submission yourself, as always. Release Notes 4.8a Page 73 of 81

74 14.0 Reports and Report Writer Codes (Classic/Premier) 14.1 Instructions to Import Reports Reports can either be imported from Batch Import Reports or from the Export/Import Reports option on the Reports Menu Batch Imports Un-tick the Select All option. Tick the Module(s) where the Report(s) listed below can be found. Continue The Report List is displayed with all the reports set to Y to import. Un-tick the Select All option. Find the applicable Report and select it. Continue will import the selected reports Export/Import Reports Option In the example below, we are presuming that your VIP Directory is on Drive C. The Export/Import Reports option is found under Reports on the Main Menu. The Import and Export Reports screen will be displayed. Complete the following information: Click on the Radio button next to Interface file, as you will import the Reports from your C Drive. Release Notes 4.8a Page 74 of 81

75 Enter the required Drive letter, e.g. C. Then complete the following information: Click on the Radio button next to Company Select all the applicable companies to where the new reports must be imported, from the Company Selection Screen, in this example only Company 900. Click on Continue. You will be prompted to enter the Real Number of the Report, e.g Enter the Real Number and click on Continue. The Status of the Imported Report will be shown on screen. Click on Continue and enter the Real Number of the next Report to be imported New Standard Reports The following Standard Reports need to be imported RSA Users (Classic/Premier) Report Real Number Report Name 767 ETI Validation Report 14.3 Changed Standard Reports (Classic/Premier) The following Standard Report has been amended and will need to be imported. Overwrite existing Report All Users (Classic/Premier) Report Real Number Report Name 552 Personal Information Release Notes 4.8a Page 75 of 81

76 14.4 RG Codes All Users (Classic/Premier) These RG Codes are found under the Employee Information group on the RG Code look-up list: Code RG Code Label Length Description Work Country Cde 2 Work Address Country Code link from the Employee Address Screen Work AddrCountry 36 Work Address Country Code Description Release Notes 4.8a Page 76 of 81

77 15.0 Support Lifeline (Classic/Premier) At certain times of the year, our support centres experience extremely high call volumes. To assist you, as a customer, in finding answers to your questions without having to wait for the assistance of a Consultant, we have added a Support <Lifeline> button at the top of the Company Selection Screen. When you click on <Lifeline > you will be redirected to an online Knowledge Base with various How To documents that can assist you, step-by-step, to solve the most frequently asked questions. There will also be buttons at the bottom of the screen that, when you click on them, will redirect you to information relating to the specific period of the year you are working in e.g. How to make a copy system at Tax Year End. Please Note: Your Site Code and licensing information is validated against our CRM Database. If for any reason this information does not correlate, you will need to logon to the Customer Zone and will not be taken directly to the Knowledge Base. Release Notes 4.8a Page 77 of 81

78 16.0 Items Resolved / Requests Implented (Classic/Premier) The following issues have been resolved in this release and the requests listed here have been implemented. Summary/Area Employee IS screen RSA UIF Submission Support Help Description Work Address Country Code will now default to ZA in all RSA companies when a New Employee is added. When printing the UIF Submissions Report, you got a Status 23 error on VPCNT000.pay. Wording on the Support help is changed to guide client in supplying more information. Referral Updated with latest information on referral commission and competition. Also allow the user to indicate the product required by the referral company. System Rebuild Now includes the VPAPIxxx.PAY file in the rebuild process. Status When a user got a Status error on the Employee IS Screen, the message incorrectly referred to the ETIWAGE.PAY file and not the VPEWG.PAY file. A new message, giving more information, has been added to the System Descriptions > ETI Codes about the use of the SEZ Code. SEZ Code Basic Company Setup of ETI Wage Components When the user selects XS Screen line items to indicate where the Wage Rate Per Hour is, the changes made to the Wage Rate did not save when you exited the screen. Employee Medical History Screen If the Medical Aid Start Date is after the Employee Date Engaged and you enter backdated beneficiaries in January and February 2017, the system incorrectly calculated the Medical Aid Rebate according to the Periods in Service instead of using the periods contributed towards Medical Aid. Release Notes 4.8a Page 78 of 81