Release Notes 4.8a
Premier and Classic March 2017
Release Notes 4.8a Page 2 of 81
1.0 RSA: Employee Tax Incentive - Explanation of
Amendments and Calculations 5
1.1 Wage Qualifying Test 5
1.1.1 Summary of the legislation for the wage qualifying
test from March 2017: 6
1.1.2 ‘Employed and Remunerated’ Hours 7
1.1.3 Actual Wage 8
1.2 Remuneration 12
1.2.1 Application of ‘employed and remunerated’ hours in
terms of remuneration 13
1.3 Calculation of the ETI Amount 15
1.4 Roll-Over and Reimbursement 17
2.0 RSA: Employment Tax Incentive (ETI)
Amendments in the System (Classic/Premier) 18
2.1 Important Notice 18
2.2 ETI Setup 18
2.2.1 Guidelines 19
2.2.2 ETI Company Setup 19
2.2.3 Check Employee Wage Regulating Measure 23
2.3 Employee Tax Incentive Tab 23
2.3.1 ETI Engagement Date 24
2.3.2 Wage Regulating Measure 25
2.3.3 Employed and Remunerated Hours (Rem) 25
2.3.4 Employed and Remunerated Hours (Wage) 25
2.3.5 ‘Number of days worked in this Month’ Message 26
2.4 Employee ETI History Screen 27
2.4.1 Summary Tab 27
2.4.2 Detail Tab 27
2.5 Global Activation of Wage Regulating Measure 30
2.6 ETI Employed and Remunerated Hours Import 30
2.6.1 Import 30
2.6.2 Export 31
2.7 ETI History Export 33
2.7.1 Export 33
2.7.2 Import 35
2.8 ETI Validation Report (Real Number 767) 35
2.8.1 Checklist Control 36
3.0 RSA: Statutory Changes (Classic/Premier) 37
3.1 Tax Table Changes 2017-2018 37
3.2 Other Tax Changes Affecting Payroll 38
3.2.1 Directors’ Deemed Remuneration 38
3.2.2 Retirement Funding Income (RFI) Definition 38
3.3 Other Tax Changes Not Affecting Payroll 39
3.3.1 Subsistence Allowances and Advances 39
3.3.2 Table for Calculation of Rate per km\Travel
Allowance 40
3.3.3 Remuneration Proxy 40
Table of Contents
Release Notes 4.8a Page 3 of 81
3.3.4 Employer Provided Bursaries 41
3.3.5 Reimbursive Travel Allowance 41
3.3.6 Certain Dividends Included in Remuneration 42
3.3.7 Value of ‘B’ in the Residential Accommodation Fringe
Benefit Calculation 42
4.0 Africa: Ghana – Change to SSNIT Tier 1 (Premier) 43
5.0 Africa: Kenya Tax Tables (Premier) 44
6.0 Africa: Nigeria Social Insurance Trust Fund
(Premier) 45
6.1 Payroll Changes 46
6.1.1 Add Regular Earnings to the Calculation of NSITF 46
6.1.2 Amend Report Setup 46
7.0 Africa: Zambia Statutory Changes (Premier) 47
7.1 Skills Development Levy 47
7.2 NAPSA Ceiling Increase 48
7.3 New PAYE Tax Tables 48
8.0 Budget Module- mSCOA (Premier) 49
8.1 Increase of Budget Information per Job 49
8.2 Global Budget Increase 50
9.0 Income Verification (Classic/Premier) 53
9.1 How it Works 53
9.2 Benefits to Employer and Employee? 53
9.3 Income Verification Setup Process 53
9.4 Access Control 55
9.5 Uploading of Payslips 55
10.0 Work Address Code (Classic/Premier) 56
10.1 Work Address System Description Code 56
10.1.1 Conversion 56
10.1.2 Adding Work Address Codes 57
10.2 Employee Address Details Tab 57
11.0 Reporting: Swaziland - Country Specific Reports
(Classic/Premier) 58
11.1 Reports Menu 58
11.2 Reports in Excel 61
11.3 Audit Log File 61
11.4 Windows Regional Settings 62
11.5 Swaziland Reports 63
11.5.1 SNPF Report – Electronic NPF200 Form 63
11.5.2 PAYE Monthly Declaration Return 64
11.5.3 PAYE 16 Reconciliation of Tax Deductions Made and
of Stock of Certificates on Hand 65
11.5.4 PAYE 15 Annual Return of Salaries 67
Release Notes 4.8a Page 4 of 81
11.5.5 PAYE 05 Employee Tax Certificate 68
11.5.6 IRP5 Electronic Submission File 69
12.0 Reporting: Africa – New and Changed Reports
(Premier) 71
12.1 Tanzania Form LAPF 10 Report 71
12.2 Other Report Changes (Premier / Classic in some
instances) 71
13.0 Reporting: RSA - UIF Submission Report (Real
Number 651) (Classic/Premier) 73
14.0 Reports and Report Writer Codes
(Classic/Premier) 74
14.1 Instructions to Import Reports 74
14.1.1 Batch Imports 74
14.1.2 Export/Import Reports Option 74
14.2 New Standard Reports 75
14.2.1 RSA Users (Classic/Premier) 75
14.3 Changed Standard Reports (Classic/Premier) 75
14.3.1 All Users (Classic/Premier) 75
14.4 RG Codes 76
14.4.1 All Users (Classic/Premier) 76
15.0 Support Lifeline (Classic/Premier) 77
16.0 Items Resolved / Requests Implented
(Classic/Premier) 78
17.0 Items Included from Previous System
Enhancements (Classic/Premier) 81
Release Notes 4.8a Page 5 of 81
The Taxation Laws Amendment Act, 2016, promulgated on 19 January 2017 in Government
Gazette 40562, extends ETI for another 2 years, ending on 28 February 2019. The Act also
contains a number of changes that we have made provision for in the Payroll System.
You will find an explanation of the ETI amendments and calculations and the changes made
to ETI in the Taxation Laws Amendment Act in this section, followed by the changes we have
made to the system to accommodate these changes in the next section.
1.1 Wage Qualifying Test
In order for an employee to qualify for ETI, he/she must pass the wage qualifying test. This is
one of the qualifying criteria to establish if an employee is a qualifying employee. Other
qualifying criteria includes; employed on or after 1 October 2013, 18 to 29 years old, valid
RSA ID / Asylum Seeker Permit / Refugee ID Number, not a domestic worker, not a
connected person to the employer and monthly remuneration must be less than R6 000.
‘Wage’ refers to the cash amount paid for ordinary hours of work. This is typically basic
salary or basic wage of the employee, excludes elements such as overtime, commission,
bonus etc., and includes any leave pay (such as pay for annual leave, sick leave, family
leave etc.). The ‘wage’ the employee earns should be at least the minimum wage according
to the wage regulating measure (collective agreement, bargaining council or sectoral
determination) or R2 000 for a full month, which is at least 160 hours, if there is no wage
regulating measure.
Before March 2017
If a wage regulating measure was applicable, then the monthly wage was compared to
the minimum monthly wage (it was understood that a rate per hour comparison was
allowed as this was effectively the same as grossing-up the wage).
If no wage regulating measure was applicable the monthly wage was calculated in the
following way:
– If the employee was employed for less than 160 hours per month, then a gross-up of
the wage was performed to see how much the wage would have been for 160 hours.
– If the employee was employed for 160 hours or more, no gross-up of the wage was
required.
Hours employed referred to:
Contractual normal hours (no overtime hours), in the case of a ‘permanent’ employee for
ETI purposes (those employees who work in terms of an employment contract that
specifies a contractual predictability of regular work in the future. In other words, an
employee with a standard amount of hours to work in a month.
Actual total hours worked in the case of a ‘temporary’ employee for ETI purposes
(employee without a standard amount of hours to work in a month or an employee who
works an irregular amount of hours, such as temps or casual workers).
Actual normal hours employed for new and terminated employees.
1.0 RSA: Employee Tax Incentive - Explanation of
Amendments and Calculations
Release Notes 4.8a Page 6 of 81
Please Note: The definitions for ‘permanent’ and for ‘temporary’ are not legal terms, but
our own definitions we used to explain the legislation.
To simplify the calculation, from March 2015 the test was not based on the wage rate per
month, but by applying a rate per hour comparison:
The minimum wage rate per hour applied if there was a wage regulating measure, or
If there was no wage regulating measure, an employee qualified if the wage rate per hour
of the employee was equal to or more than R12.50 (R2 000/160 hours).
From March 2017
The legislation was amended to change the word from ‘employed’ to ‘employed and paid
remuneration’ in order to clarify the applicable hours worked in the grossing up/grossing
down calculation.
The term ‘employed’ has a different meaning to ‘employed and paid remuneration’ and
therefore some of the calculations are changing.
1.1.1 Summary of the legislation for the wage qualifying test from March 2017:
If a wage regulating measure is applicable:
The wage paid should be compared to the minimum wage of the wage regulating
measure in respect of that month, it is understood that a rate per hour comparison is
allowed as this is effectively the same as grossing-up the wage.
If no wage regulating measure is applicable:
If an employee is ‘employed and paid remuneration’ for less than 160 hours in a month,
then gross-up the wage to 160 hours to determine if the monthly wage is R2 000 or more.
If an employee is ‘employed and paid remuneration’ for at least 160 hours in a month, no
gross-up of the wage is required to determine whether the monthly wage is R2 000 or
more.
The amended legislation allows for a rate per hour/week/month comparison for employees
with a wage regulating measure. However, the amended legislation does not provide for a
gross-up calculation if a wage regulating measure is applicable. Therefore, our system will
still perform a rate per hour comparison for employees with a wage regulating measure to
apply the wage qualifying test.
The wording of the legislation in respect of employees without a wage regulating measure
has changed to indicate that a gross-up calculation should be done based on all hours
‘employed and remunerated’. Therefore, we will not be performing a rate per hour
comparison on employees without a wage regulating measure. The wage qualifying test
must be applied strictly on a monthly basis (R2000 for a full month, which is at least 160
‘employed and remunerated’ hours).
Release Notes 4.8a Page 7 of 81
From March 2017
The following wage qualifying tests will be applied:
Wage regulating measure (no change)
Check if contractual/actual wage rate per hour of the employee is equal or more than the
minimum wage rate per hour (according to the wage regulating measure) of the employee.
No wage regulating measure
If ‘employed and remunerated’ hours are less than 160 hours a gross-up calculation will be
done using the actual monthly wage to apply the wage qualifying test.
Actual monthly wage / ‘employed and remunerated’ hours x 160
If the ‘employed and remunerated’ hours are 160 or more the actual monthly wage will be
used to apply the wage qualifying test.
If the actual monthly wage or grossed-up monthly wage for a full month (at least 160 hours)
is R2000 or more, the employee will pass the wage qualifying test.
If the actual monthly wage / grossed-up monthly wage for a full month (at least 160 hours) is
less than R2000, the employee will fail the wage qualifying test and no ETI will calculate.
In order to apply this test, the system must know the following:
‘Employed and remunerated’ hours
Actual wage for the month
1.1.2 ‘Employed and Remunerated’ Hours
‘Employed and remunerated’ hours are all actual hours the employee was ‘employed and
remunerated’ for. In other words, it should be the ordinary hours less any unpaid hours (such
as unpaid leave hours, no work-no pay hours, strikes etc.) plus any additional hours (such as
overtime hours, public holiday worked hours, hours worked on a Sunday etc.).
Before March 2017 we distinguished between permanent employees (employees with a
standard amount of hours to work in a month) and temporary employees (employees without
a standard amount of hours to work in a month or employees who work an irregular amount
of hours) in order to apply the ‘employed’ hours. We used the ‘employed’ hours to determine
whether a gross-up of the wage should have been done.
For explanatory purposes we will still distinguish between permanent, temporary, new and
terminated employees.
Permanent employees – contractual/ordinary hours (average working hours per month
according to the BCEA, calculated on a 4.3333 week or according to the employment
contract) less any unpaid hours (such as unpaid leave hours, no work-no pay hours) plus
any additional hours (such as overtime hours, public holiday worked hours, hours worked
on a Sunday etc.).
Release Notes 4.8a Page 8 of 81
Temporary employees – actual number of hours worked in the month (the calculation of
hours will include ordinary hours plus additional hours of work, unpaid hours will
automatically not be counted).
New and terminated employees – actual number of hours worked if employed after the
first day of the month or terminated before the last day of the month (the calculation of
hours will include ordinary hours plus additional hours less unpaid hours).
Please Note: It is our opinion that ordinary/contractual (average working hours per month)
less unpaid hours plus additional hours can be used for permanent employees as this
refers to the number of hours ‘employed and remunerated’ during the month.
Example 1 – permanent monthly paid employee:
The employment contract states that the employee’s ordinary hours of work is 8 hours a day,
5 days a week (Monday to Friday) which is 173.3333 average working hours per month (in
line with the BCEA).
In the month of April, the employee took 30 hours unpaid leave (unpaid hours) and worked 3
hours overtime (additional hours).
‘Employed and remunerated’ hours for the month:
Contractual/ordinary hours – unpaid hours + additional hours
= 173.3333 – 30 + 3
= 146.3333 hours
Example 2 – permanent weekly paid employee:
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) – 30 + 3
= 133 hours
1.1.3 Actual Wage
According to the Basic Conditions of Employment Act, actual wage will include the basic
wage or salary (excluding fringe benefits and company contributions) paid to the employee
for the month and excludes elements such as overtime, commission, bonus etc. Actual wage
includes leave pay (such as annual leave, sick leave, family leave etc.). It is important that
earning lines/components which form part of the employee’s wage are separate from other
earnings on the payroll.
Release Notes 4.8a Page 9 of 81
Diagram to Illustrate the Wage Qualifying Test for Employees Without a Wage
Regulating Measure
*Hours refer to ‘employed and remunerated’ hours.
No wage regulating measure
*Hours less than 160
Gross-up calculation:
Actual monthly wage / *hours x 160
Grossed-up wage is R2000 or more
Employee passes the wage qualifying test
Grossed-up wage is less than R2000
Employee fails the wage qualifying test, no ETI is calculated
*Hours are 160 or more
Actual monthly wage
Actual wage is R2000 or more
Employee passes the wage qualifying test
Actual wage is less than R2000
Employee fails the wage qualifying test, no ETI is calculated
Release Notes 4.8a Page 10 of 81
Wage Qualifying Test: Wage Regulating Measure vs. No Wage Regulating Measure
Please Note: It is the user’s responsibility to process the correct ‘employed and
remunerated’ hours in order to correctly calculate and claim ETI.
From March 2017, the wage qualifying test remains the same for employees with a wage
regulating measure (rate per hour comparison – actual ‘wage’ rate per hour must be equal
to or more than the minimum wage rate per hour according to the wage regulating
measure). The wage qualifying test is only changing for employees without a wage
regulating measure.
Example 1 – permanent monthly paid employee with no wage regulating measure
The employment contract states that the employee’s ordinary hours of work is 8 hours a day,
5 days a week (Monday to Friday) which is 173.3333 average working hours per month (in
line with the BCEA).
Employee A was appointed on 1 April 2017. Employee A meets all other qualifying criteria in
terms of ETI. In the month of April employee A took 30 hours unpaid leave (unpaid hours)
and worked 3 hours overtime (additional hours).
Wage qualifying test
Wage regulating measure
The actual wage rate per hour must be equal to or more than the minimum wage rate per
hour specified according to the wage regulating measure for the employee to pass
the wage qualifying test.
No wage regulating measure
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.
Release Notes 4.8a Page 11 of 81
Payslip:
Earnings Amount
Salary R2 100.00
Overtime R 560 .00
Unpaid Leave R 220.00
Commission R1 800.00
Total R4 240.00
Wage qualifying test: Receives at least R2000 wage for a full month (160 hours).
‘Employed and remunerated’ hours:
Contractual/ordinary hours – unpaid hours + additional hours
= 173.3333 – 30 + 3
= 146.3333 hours
Monthly wage for 160 hours:
Actual wage / ‘employed and remunerated’ hours x 160
= (Salary – unpaid leave) / 146.3333 x 160
= R2 100 – R220.00 / 146.3333 x 160
= R2056.00
Pass wage qualifying test as the wage for a full month is equal to or more than R2 000.
Example 2 – permanent weekly paid employee with a wage regulating measure
The collective agreement states that the employee should be paid a minimum rate of R22.50
and that his ordinary hours of work is 45 hours a week. April has 5 weeks in the month.
Employee A was appointed on 1 April 2017. Employee A meets all other qualifying criteria in
terms of ETI. In the month of April employee A took 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 12 of 81
Payslip:
Earnings Amount
Wage R4 230.00
Overtime R 282 .00
Unpaid Leave R 432.00
Sick Leave R 634.00
Total R4 714.00
Wage qualifying test:
Actual rate per hour equal to or more than the minimum rate per hour according to the wage
regulating measure.
=R23.50 is more than R22.50
Pass wage qualifying test as employee A’s actual rate per hour is equal to or more than the
minimum rate per hour according to the wage regulating measure.
1.2 Remuneration
Monthly remuneration (taxable earnings, taxable perks and taxable company contributions) is
used to calculate the employment tax incentive amount.
Before March 2017
A gross-up of remuneration was performed if the employee was employed for less than 160
hours a month. In other words, if the person was employed for less than 160 hours then a
‘gross-up’ of remuneration was done to calculate what the person would have earned for a
full month (a full month is seen as 160 hours). A full month’s remuneration was used to
calculate the ETI value.
Gross-up calculation: Remuneration earned / hours employed x 160.
Hours employed referred to:
Contractual normal hours (no overtime hours) in the case of a ‘permanent’ employee for
ETI purposes (those employees who work in terms of an employment contract that
specifies a contractual predictability of regular work in the future. In other words, an
employee with a standard amount of hours to work in a month.).
Actual total hours worked in the case of a ‘temporary’ employee for ETI purposes
(employee without a standard amount of hours to work in a month or an employee who
works an irregular amount of hours, such as temps or casual workers).
Actual normal hours employed for new and terminated employees.
Please Note: The definitions for ‘permanent’ and for ‘temporary’ are not legal terms, but
our own definitions we used to explain the legislation.
Release Notes 4.8a Page 13 of 81
From March 2017
A gross-up of remuneration should be performed if the employee is ‘employed and paid
remuneration’ for less than 160 hours a month (for employees with and without wage
regulating measure):
If an employee is ‘employed and paid remuneration’ for 160 hours or more in a month,
then the actual amount of remuneration paid to the employee in a month (no gross-up
calculation) is used.
If an employee is ‘employed and paid remuneration’ for less than 160 hours in a month
the monthly remuneration is calculated as follows:
Remuneration earned in the month / ‘employed and remunerated’ hours x 160.
‘Employed and Remunerated’ Hours
‘Employed and remunerated’ hours are all actual hours the employee was ‘employed and
remunerated’ for. In other words, it should be the ordinary hours less any unpaid hours (such
as unpaid leave hours, no work-no pay hours, strikes etc.) plus any additional hours (such as
overtime hours, public holidays worked hours, hours worked on a Sunday.).
Before March 2017 we distinguished between permanent employees (employees with a
standard amount of hours to work in a month) and temporary employees (employees without
a standard amount of hours to work in a month or employees who work an irregular amount
of hours) in order to apply the ‘employed’ hours. We used the ‘employed’ hours to determine
whether a gross-up of the wage should have been done.
For explanatory purposes we will still distinguish between permanent, temporary, new and
terminated employees.
Permanent employees – contractual/ordinary hours (average working hours per month
according to the BCEA, calculated on a 4.3333 week or according to the employment
contract) less any unpaid hours (such as unpaid leave hours, no work-no pay hours) plus
any additional hours (such as overtime hours, public holiday worked hours, hours worked
on a Sunday.).
Temporary employees – actual number of hours worked in the month (the calculation of
hours will include ordinary hours plus additional hours of work, unpaid hours will
automatically not be counted).
New and terminated employees – actual number of hours worked if employed after the
first day of the month or terminated before the last day of the month (the calculation of
hours will include ordinary hours plus additional hours less unpaid hours).
Please Note: It is our opinion that ordinary/contractual (average working hours per month),
less unpaid hours plus additional hours can be used for permanent employees as this
refers to the number of hours ‘employed and remunerated’ during the month.
1.2.1 Application of ‘employed and remunerated’ hours in terms of remuneration
If the ‘employed and remunerated’ hours are less than 160, the system will do a gross-up
calculation of the remuneration:
Actual remuneration / ‘employed and remunerated’ hours x 160
Release Notes 4.8a Page 14 of 81
If the ‘employed and remuneration hours’ are 160 or more, the system will use actual
remuneration.
The actual/grossed-up remuneration for the full month has to be less than R6000 for the
employee to qualify. If the remuneration for the full month is R6000 or more, the
employee will not qualify and no ETI amount will calculate.
Diagram to Illustrate the Calculation of Remuneration for All Employees (With and
Without a Wage Regulating Measure)
*Hours refer to ‘employed and remunerated’ hours.
'Employed and remunerated' hours
*Hours less than 160
Gross-up calculation:
Actual monthly remuneration / *hours
x 160
Grossed-up remuneration is R6000 or more
No ETI amount is calculated
Grossed-up remuneration is less
than R6000
Continue to calculate ETI amount
*Hours are 160 or more
Actual monthly remuneration
Actual remuneration is R6000 or more
No ETI amount is calculated
Actual remuneration is less than R6000
Continue to calculate ETI amount
Release Notes 4.8a Page 15 of 81
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 173.3333 average working hours per month (in
line with the BCEA).
Employee A was appointed on 1 April 2017. Employee A meets all other qualifying criteria in
terms of ETI. In the month of April employee A took 30 hours unpaid leave (unpaid hours)
and worked 3 hours overtime (additional hours).
Employee A’s actual wage for April is R1 900.00.
Employee A’s actual remuneration for April is R3 700.00.
‘Employed and remunerated’ hours: Ordinary hours – unpaid hours + additional hours
= 173.3333 – 30 + 3
= 146.3333
Wage qualifying test: Receives at least R2000 wage for a full month (160 hours).
Actual wage / ‘employed and remunerated’ hours x 160
= R1 900.00 / 146.3333 x 160
= R2 076.80
Pass the wage qualifying test as the wage for a full month is equal to or more than R2 000.
Remuneration: Remuneration for the full month (160 hours) less than R6 000.00.
Actual remuneration / ‘employed and remunerated’ hours x 160
= R3 700 / 146.3333 x 160
= R4044.80
Release Notes 4.8a Page 16 of 81
Continue to calculate the ETI amount as the remuneration for a full month is less than
R6 000.
Calculation of ETI amount:
= R1 000 – [0.5 x (monthly remuneration – R4 000)] / 160 x 146.3333
= R1 000 – [0.5 x (R4044.80 – R4 000)] / 160 x 146.3333
Pro-rata (gross-down) ETI amount (‘employed and remunerated’ hours less than 160
hours):
ETI amount / 160 x ‘employed and remunerated’ hours
= R977.60 / 160 x 146.3333
=R894.10 >>> Final ETI amount for the month of April.
Example 2 – temporary weekly paid employee with a wage regulating measure
The collective agreement states that the employee should be paid a minimum rate of R22.50
Employee A was appointed on 1 April 2017. Employee A meets all other qualifying criteria in
terms of ETI. In the month of April employee A worked 158 ordinary hours and 5 overtime
hours (additional hours).
The employer pays the employee R23.50 per hour.
Employee A’s actual wage for April is R3 713.00.
Employee A’s actual remuneration for April is R4 528.00.
‘Employed and remunerated’ hours: Ordinary hours + additional hours
= 158 + 5
= 163
Wage qualifying test: actual rate per hour equal to or more than the minimum rate per hour
according to the wage regulating measure.
= R23.50 is more than R22.50
Pass wage qualifying test as employee A’s actual rate per hour is equal to or more than the
minimum rate per hour according to the wage regulating measure.
Remuneration: Remuneration for the full month (160 hours) less than R6 000.
= R4 528.00
Continue to calculate the ETI amount as the remuneration for a full month is less than
R6 000.
Release Notes 4.8a Page 17 of 81
Calculation of ETI amount
= R1 000 – [0.5 x (monthly remuneration – R4 000)]
= R1 000 – [0.5 x (R4 528 – R4 000)]
= R736.00 >>> Final ETI amount for the month of April, the ETI amount will not be pro-rated (grossed-down) as the ‘employed and remunerated’ hours are 160 or more.
1.4 Roll-Over and Reimbursement
Before March 2017
If the employer was tax compliant, the ETI due to the employer (after the 6 month cycle)
would have been reimbursed at some stage during the next 6 month cycle. An ETI refund
would only be paid if an employer was tax compliant. This means that all tax returns must
have been submitted and there should have been no outstanding tax debt when the
employer’s reconciliation documents (EMP501 and IRP5/IT3(a)s) were received and
processed by SARS. If the employer was not tax compliant, the excess amount would have
been reimbursed when the employer became tax compliant. If the employer failed to be tax
compliant within the next six months, the excess amount would have been permanently lost.
From 2017 onwards this is still applicable.
From March 2017
If the employer does not claim the ETI amount they are entitled to within the 6 month cycle
(for example they forgot to or any other case), then the ETI will be nil (0.00) after the 6 month
cycle and the employer will not receive ETI as a refund and cannot back-date the ETI claims
if the 6 month cycle has elapsed. This is only applicable when the employer did not claim the
ETI amount they are entitled to.
If the employer does not claim the ETI amount due to the fact that the ETI amount exceeds
the employees’ tax due for the month or due to the fact that the employer is not tax
compliant, then the ETI brought forward amount will still be 0.00 in the months following the 6
month cycle (March and September) but the employer will still be eligible to claim the excess
ETI amount as a refund after the 6 month cycle (only if the employer is compliant).
Please Note: It is our understanding that this is what is implied with the amendments in
the legislation. We are in the process of confirming whether our interpretation is in line with
SARS’s.
Release Notes 4.8a Page 18 of 81
2.1 Important Notice
When you access any RSA Tax Country after converting to Release 4.8a, the following
Important Notice will be displayed (irrespective of the processing period):
The <Print> button allows you to print this screen for easy reference. This message will
continue to appear until you tick that you have acknowledged the message. This action will
be recorded on the Audit Trail.
This message points you to the ETI Setup Screen and you can click on the <Guidelines>
button for more information on the steps to follow to review your Company’s current ETI
setup.
2.2 ETI Setup
Once your company is in March 2017, a new Menu option is available to give you easy
access to amend the ETI setup after conversion:
Main Menu > Company > ETI Setup
2.0 RSA: Employment Tax Incentive (ETI)
Amendments in the System (Classic/Premier)
Release Notes 4.8a Page 19 of 81
Access Control
Access Control to this screen is determined by:
Company > Access Control > Advanced Access Control > Advanced Page 1 > Basic
Company Information:
View Access:
None of the options on the ETI Company Setup (tick boxes, radio buttons, table
selections) can be changed, all can be viewed.
The Check Wage Regulating Measurement can be accessed and be Exported.
2.2.1 Guidelines
Please click on the <Guidelines> button for more details.
2.2.2 ETI Company Setup
When you click on this button you will be taken to the Employee Tax Incentive Tab, also
found from Main Menu > Basic Company Information > Employee Tax Incentive Tab.
Release Notes 4.8a Page 20 of 81
Irrespective of which pay period the company is in, the Leave Pay option is no longer
displaying, because it is irrelevant.
Guidelines
Click on the <Guidelines> button for more information.
Step 1: Indicate where the Rate per Hour is stored for Employees with a Wage
Regulating Measure
This will either be on the Increase or on the Calculation Screen.
Increase Screen: Selecting this option will use the Rate per Hour from the Increase
Screen.
Calculation Fields: Selecting this option will use the value from the flagged lines on the
Calculation Screen table below. Select ‘Actual Rate per Hour’ which will reflect as a ‘Y’.
Removed
Release Notes 4.8a Page 21 of 81
Step 2: Define the Wage Components
The Wage Components will be defined on the Earnings and/or Calculation Screen.
Earnings: Select ‘Yes’ in the ‘Incl Wage’ column
Calculation Screen: Select ‘Wage Component’ that will reflect as a ‘W’.
Step 3: Indicate where the Employed and Remunerated Hours for ETI Employees are
stored in this company
The Employed and Remunerated Hours must be completed for Wage Regulating and for
Non-Wage Regulating Employees.
Actual Monthly Hours Worked
According to the ETI Act a full month is at least 160 hours. To establish whether a Gross-
up calculation should be done, we need to establish whether the employee worked at least
160 hours for the full month or part of the month.
Permanent Employees: Contractual Hours will be used if the Employee is paid for the full
month. However, if the employee is paid for less than the contractual hours (this can be
due to unpaid leave, no work, shift workers, etc.) then the contractual hours must be
reduced by the unpaid hours (i.e. actual monthly wage paid hours).
Temporary Employees: Employee are typically ticked for ‘Employee Works Irregular
Hours’. The calculated hours entered here will be Ordinary Hours plus Additional Hours of
work with Unpaid Hours excluded. However, you can also simply use the Define or Import
options in this section for these Employees.
Release Notes 4.8a Page 22 of 81
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 23 of 81
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 24 of 81
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 25 of 81
2.3.2 Wage Regulating Measure
Once the Company is in the 2017/2018 Tax Year, the Wage Regulating Measure field will be displayed.
If this option is ticked, it indicates that the employee works in an industry or is doing a job that is regulated by Wage Measures.
Conversion
At conversion, if the Employee is not linked to a Minimum Wage Code or if the Employee
is linked to the VIP Standard #001 Code, the Wage Regulating Measure will not be
ticked.
At conversion, if the Employee is linked to a Minimum Wage Code, the Wage Regulating
Measure will be ticked.
In both these instances, you can tick or untick the default Wage Regulating Measure or
amend it globally (See Global Activation further down).
Changes made to this field will be recorded on the Audit Logger File.
2.3.3 Employed and Remunerated Hours (Rem)
The Employed and Remunerated Hours (Rem) will display in any Pay Period once Release
4.8a has been installed.
If the Import Hours option has been selected on the ETI Setup Tab (as from 2017/2018 Tax
Year), then this field will be enabled.
The Actual Remunerated Hours, as defined on the ETI Setup Tab, will display in this field.
Remuneration Hours will be used for the Gross-up Calculation of Remuneration for ETI
calculation purposes.
If the Employee is ticked for Irregular Hours, the Employed and Remunerated Hours (Rem)
field will not be displayed, and the Irregular Hours Setup will be used for Remuneration
Hours.
If the Employee is New or Terminated and is not employed for the full month, then you can
enter the Days Worked in this Month at the bottom left hand side of the screen. If Days are
entered, then the Hours as setup on ETI Setup Screen will be ignored for the current month.
2.3.4 Employed and Remunerated Hours (Wage)
The Employed and Remunerated Hours (Wage) will display in any Pay Period once Release
4.8a has been installed.
If the Import Hours option has been selected on the ETI Setup Tab (as from 2017/2018 Tax
Year), then this field will be enabled.
The Actual Wage Hours, as defined on the ETI Setup Tab, will display in this field.
Wage Hours will be used in the Gross-up Calculation for the Wage Qualifying Test.
Release Notes 4.8a Page 26 of 81
If the Employee is ticked for Irregular Hours, the Employed and Remunerated Hours (Wage)
field will not be displayed, and the Irregular Hours Setup will be used for Wage Hours.
If the Employee is New or Terminated and is not employed for the full month, then you can
enter the Days Worked in this Month at the bottom left hand side of the screen. If Days are
entered, then the Hours as setup on ETI Setup Screen will be ignored for the current month.
2.3.5 ‘Number of days worked in this Month’ Message
We have added a message to remind you to enter the pro-rata days for Employees who
have not worked a full month, due to being a New or Terminated Employee.
Please Note: This field can also be imported via the Flexi Fixed Information Utility.
If you add an Employee with a Date Engaged that starts after the Month Start Date, when
you are on the Employee ETI Tab, the following message will be displayed:
If you select <Yes> the cursor will go straight to the ‘Number of days worked in this Month’
entry field. You will not be forced to enter days.
If you terminate an Employee with a Termination Date earlier than the Month End Date, we
have added the same message. If you select <Yes> the ‘Number of days worked in this
Month’ entry field, will be displayed, from the Employee ETI Tab, for easy entry:
Please Note: It is the DAYS worked in the MONTH that must be entered here. The days
will be multiplied by the Working Hours per Day on the Increase Screen to calculate a pro-
rata ETI value for the period.
Release Notes 4.8a Page 27 of 81
2.4 Employee ETI History Screen
The Employee ETI History Screen is accessed from the Payslip Screen by clicking on the
<ETI> button on the top ribbon.
2.4.1 Summary Tab
The Monthly Incentive Table has been adjusted by a cent in all three the brackets.
2.4.2 Detail Tab
The new fields added to the Employee ETI Screen have also been added to the History
Screen:
ETI Engagement Date
Wage Regulating Measure
Employed and Remunerated Hours
Min. Wage and ETI Actual Wage (Non-wage Regulating Measure Employees will now
display the wage instead of the Rate)
or
Min. Rate and ETI Actual Rate (Wage Regulating Measure Employee remains
unchanged)
Release Notes 4.8a Page 28 of 81
Employee ETI History Screen for Wage Regulating Measure Employee:
Employee ETI History Screen for Non-Wage Regulating Measure Employee:
Release Notes 4.8a Page 29 of 81
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 30 of 81
2.5 Global Activation of Wage Regulating Measure
You are able to activate or deactivate the Wage Regulating Measure Tick globally.
Payroll > Global Activation > ETI > Wage Regulating Measure
You can select to apply the change to all Employees or to Employees linked to a specific
Wage Code.
2.6 ETI Employed and Remunerated Hours Import
If you have selected ‘Step 3: Import Hours to the ETI Screen’ on the ETI Setup Screen, this
menu option becomes enabled:
Main Menu > Interfaces > Import Data > ETI Hours
This feature allows you to Import or Export the Wage and Remunerated Hours for the
Current Pay Period, using an Excel Spreadsheet.
2.6.1 Import
Access Control
Company > Access Control > Advanced Access Control > Advanced Page 3 > Batch Entry / Import (Full Access) or Company > Access Control > Basic Access > Employee > Salary Information.
When you click on ‘Import’ the following screen is displayed:
Release Notes 4.8a Page 31 of 81
Please read the <Guidelines> to ensure the import file is compiled correctly (the import and
export file should be in the same format.
The default file name is IMP-ETI.CSV.
Please Note: Hours cannot be imported for Employees set up for Irregular Hours nor for
New or Terminated Employees where Days have been captured. If there are any such
Employees in the import file, they will be listed on an Exception Report.
2.6.2 Export
Access Control
There is no Access Control for the Export of ETI Hours.
When you click on ‘Export’ the following screen is displayed:
Release Notes 4.8a Page 32 of 81
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 33 of 81
Once the file has exported successfully, a message will display indicating the number of
records exported.
The CSV file, as defined, is saved to the specified destination and the following message is
displayed:
If you select <No>, you will be taken back to the Main Menu and the CSV file is saved in the
specified directory.
If you select <Yes>, Excel will open and you will need to browse for the exported CSV file.
2.7 ETI History Export
Up until now, importing ETI History for take-on purposes has been a tedious task.
To simplify this process we have created an ETI History Utility Export.
2.7.1 Export
You can access the ETI History Export in two ways:
Main Menu > Interfaces > Import Data > Utility Imports > ETI Take-On
An additional selection screen has been inserted here: Select Export
Release Notes 4.8a Page 34 of 81
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 35 of 81
Once the file has exported successfully, a message will display indicating the number of
records exported.
The CSV file, as defined, is saved to the specified destination and the following message is
displayed:
If you select <No>, you will be taken back to the Main Menu and the CSV file is saved in the
specified directory.
If you select <Yes>, Excel will open and you will need to browse for the exported CSV file.
All the ETI History information for the selected year will be exported in the correct format.
2.7.2 Import
You can now modify the data, as required, save it as a CSV file and import the amended
data into the payroll system.
Please Note: If you create an import file, from the export, you can save the CSV file with
headings. The import will ignore the headings and counts the position of the data instead.
The Import has been amended to cater for the new fields that are now displayed on the ETI
History Screen:
ETI Engagement Date
Wage Regulating Measure
Employed and Remunerated Hours (Remuneration Hours)
Employed and Remunerated Hours (Wage Hours)
Please Note: Refer to the Guidelines for more details.
2.8 ETI Validation Report (Real Number 767)
The ETI Validation Report will print employees who have an ETI Comment on their ETI
History Screen, due to them having no ETI Incentive calculated for the month.
Release Notes 4.8a Page 36 of 81
You can print the report for a specific Range of Analysis Codes or Employee Codes.
The types of Employees without ETI that can be printed are:
Print ALL Employees (without ETI)
Print ACTIVE Employees (without ETI)
Print TERMINATED Employees (without ETI)
Print NEW / TERMINATED in the Current Period Employees (without ETI)
2.8.1 Checklist Control
This report has been added to the Checklist Control, found under the Company menu option
on the Main Menu, during conversion. If you have selected to enable the Checklist Process,
the ETI Validation Report will need to be printed.
Release Notes 4.8a Page 37 of 81
The Taxation Laws Amendment Act, 2016 and the Tax Administration Amendment Act, 2016
were promulgated on 19 January 2017 in Government Gazette 40562 and 40563. It contains
the following changes as of March 2017, except where mentioned otherwise. Another source
of information is the National Budget Speech, 22 February 2017.
3.1 Tax Table Changes 2017-2018
When you installed Release 4.8a, the new Tax Rates were applied retrospectively to
1 March 2017. This means that if the update was loaded after the first pay period to which
the new Tax Rates apply, the Tax would be recalculated as from the first pay period in March
2017, and the change has been applied in the period in which you installed the Release.
Taxable Income (R) Fixed Amount Rate of Tax (R)
0 – 189 880 0 18% of taxable income
189 881 – 296 540 34 178 + 26% of taxable income above 189 880
296 541 – 410 460 61 910 + 31% of taxable income above 296 540
410 461 – 555 600 97 225 + 36% of taxable income above 410 460
555 601 – 708 310 149 475 + 39% of taxable income above 555 600
708 311 – 1 500 000 209 032 + 41% of taxable income above 708 310
1 500 001 and above 533 625 45% of taxable income above 1 500 000
Tax Rebates
Primary 13 635
Secondary (Persons 65 and Older) 7 479
Tertiary (Persons 75 and Older) 2 493
Age Tax Thresholds
Below age 65 75 750
Age 65 to below 75 117 300
Age 75 and over 131 150
Personal Service Providers - Companies 28%
Personal Service Providers – Trusts 45%
Medical Aid Tax Credit
3.0 RSA: Statutory Changes (Classic/Premier)
Release Notes 4.8a Page 38 of 81
Main Member 303
First Dependant 303
Additional Dependants 204
You can view the Statutory Rates of Tax by clicking on the <TXB> button on any Employee’s
Tax Screen.
The new Tax Deduction Tables will also be applied to R.S.A. Dormant Companies that are in
the 2017 - 2018 Tax Year.
3.2 Other Tax Changes Affecting Payroll
3.2.1 Directors’ Deemed Remuneration
Before March 2017
Directors of private companies (and members of closed corporations) were taxed on the
greater of actual or deemed remuneration.
Deemed remuneration was calculated as the:
previous year’s remuneration, or if not available -
the year prior to the previous year’s remuneration plus 20%, or if not available -
an amount acquired by applying for a SARS directive.
From March 2017
Deemed remuneration will be repealed and directors of private companies (and members of
closed corporations) will only be taxed on their actual remuneration.
3.2.2 Retirement Funding Income (RFI) Definition
Currently employer contributions towards a defined benefit or hybrid fund on behalf of the
employee results in:
a fringe benefit amount calculated using the formula: X = (A X B) – C, where:
– A is the fund member category factor (indicated on the Contribution Certificate)
– B is the employee’s RFI amount, and
– C is total employee contribution amount (excluding voluntary/additional and buy-
back/arrears contributions).
Before March 2017
RFI (retirement funding income) referred to remuneration as defined in the Fourth Schedule
(which included only the taxable % of a travel allowance, company car and a public office
allowance) on which the employer contribution towards the pension/provident fund was
based on. Therefore RFI only included the 20%/80% or 100% of a travel allowance or
company car and 50% of a public office allowance.
Remuneration can be different from employee to employee, depending on the taxable % of
travel allowance which resulted in a situation where two members of the same fund (defined
benefit or hybrid) with the same contribution values had a different RFI value and therefore a
different fringe benefit value.
Release Notes 4.8a Page 39 of 81
From March 2017
RFI will be defined as income (taxable earnings + taxable perks + taxable company
contributions), however it will include the full value of a travel allowance, company car and a
public office allowance on which the employer or pension fund or provident fund contribution
towards the pension/provident fund is based on.
To clarify the new proposed legislation:
RFI will include 100% of a travel allowance or use of a motor vehicle perk and 100% of a
public office allowance and not only the taxable value anymore.
To ensure RFI is calculated when the fund itself contributes the retirement fund
contribution on behalf of the members/employees to the fund. This means there will also
be a fringe benefit amount even though it is the fund that actually contributes.
Example of RFI before and from March 2017:
Example: Pension CC is based on Salary and Travel (80% taxable)
Description Total earnings
of employee
RFI (before March
2017)
RFI (from March
2017)
Salary R20 000 R20 000 R20 000
Travel (80%
taxable)
R2 000 R1 600 R2 000
Bonus R50 000
Total R72 000 R21 600 R22 000
3.3 Other Tax Changes Not Affecting Payroll
3.3.1 Subsistence Allowances and Advances
Where the recipient is obliged to spend at least one night away from his/her usual place of
residence on business and the accommodation to which that allowance or advance is
granted to pay for:
meals and incidental costs, an amount of R397 per day is deemed to have been
expended;
incidental costs only, an amount of R122 for each day.
The rate for foreign travel will be gazetted soon and can be found on www.sars.gov.za under
the Legal and Policy tab.
Release Notes 4.8a Page 40 of 81
3.3.2 Table for Calculation of Rate per km\Travel Allowance
Value of the Vehicle
(Including VAT)
(R)
Fixed Cost
(R p.a.)
Fuel Cost
(c/km)
Maintenance Cost (c/km)
0 – 85 000 28 492 91.2 32.9
85 001 – 170 000 50 924 101.8 41.2
170 001 – 255 000 73 427 110.6 45.4
255 001 – 340 000 93 267 118.9 49.6
340 001 – 425 000 113 179 127.2 58.2
425 001 – 510 000 134 035 146.0 68.4
510 001 – 595 000 154 879 150.9 84.9
Exceeding 595 000 154 879 150.9 84.9
Prescribed Rate for Re-imbursive Kilometres
The SARS prescribed rate per kilometre increased from R3.29 to R3.55.
3.3.3 Remuneration Proxy
Currently the ‘remuneration proxy’ is used in 3 areas of employment tax:
The tax exemption rules for bursaries granted to a relative of an employee by an
employer.
The acquisition of immovable property.
The residential accommodation fringe benefit value.
Before March 2017
‘Remuneration proxy’ was defined as Fourth Schedule remuneration but excluding the
residential accommodation fringe benefit value.
From March 2017
‘Remuneration proxy’ will be remuneration defined in paragraph 1 of the Fourth Schedule
and will only exclude the residential accommodation fringe benefit value when calculating the
residential accommodation fringe benefit.
‘Remuneration proxy’ will include the residential accommodation fringe benefit value when
calculating:
the tax exemption for bursaries granted to a relative of an employee by an employer and
the acquisition of immovable property.
Release Notes 4.8a Page 41 of 81
3.3.4 Employer Provided Bursaries
A scholarship or bursary granted by the employer (or associated institution in relation to the
employer) to a relative of an employee was subject to the following conditions:
The scholarship or bursary was not exempt if the remuneration proxy exceeded
R250 000
If the remuneration proxy did not exceed R250 000, then the first R10 000 of a
scholarship or bursary in respect of grade R to grade twelve or a qualification to which an
NQF level from 1 up to and including 4 has been allocated was exempt from normal tax.
If the remuneration proxy did not exceed R250 000, then the first R30 000 of a
scholarship or bursary in respect of a qualification to which an NQF level from 5 up to and
including 10 has been allocated was exempt from normal tax.
Change:
Backdated to March 2016, the exemption thresholds for bursaries granted by the employer
(or associated institution in relation to the employer) to a relative of an employee have
increased to the following amounts:
The scholarship or bursary is not exempt if the remuneration proxy exceeds R400 000.
If the remuneration proxy does not exceed R400 000, then the first R15 000 of a
scholarship or bursary in respect of grade R to grade twelve or a qualification to which an
NQF level from 1 up to and including 4 has been allocated is exempt from normal tax.
If the remuneration proxy does not exceed R400 000, then the first R40 000 of a
scholarship or bursary in respect of a qualification to which an NQF level from 5 up to and
including 10 has been allocated is exempt from normal tax.
Please Note: The new thresholds must be backdated to March 2016.
3.3.5 Reimbursive Travel Allowance
From March 2017
The simplified method for business kilometres travelled in the application of section 8(1)(b)(ii)
of the Income Tax Act is as follows:
Report the reimbursive travel allowance on the tax certificate against code 3703 if:
the rate of reimbursement is less than the prescribed rate, and
less than 12 000 business kilometres (previously 8 000 business kilometres) are
reimbursed in the tax year, and
no travel allowance is paid in addition to the reimbursed amount.
Report the reimbursive travel allowance on the tax certificate against code 3702 if:
the rate of reimbursement exceeds the prescribed rate, or
more than 12 000 business kilometres (previously 8 000 business kilometres) are
reimbursed in the tax year, or
a travel allowance is paid in addition to the reimbursed amount.
Release Notes 4.8a Page 42 of 81
3.3.6 Certain Dividends Included in Remuneration
From March 2017
The definition of remuneration is expanded to include certain dividends from restricted equity
instruments (section 8C shares).
PAYE should be deducted from dividends as specified in paragraph (dd), (ii) and (jj) of the
proviso of section 10(1)(k)(i).
Currently it is unclear if the employer should also apply for a directive, but we assume the
PAYE amount will be acquired by applying for a directive, the same manner in which the
employer should currently apply for a section 8C share amount when vesting and/or on any
return of capital. We will, however, communicate the information once we have final
confirmation.
There is also a possibility that SARS will create a new IRP5 code/s for these dividends. Once
SARS has released the new PAYE Business Requirement Specifications document, we will
be able to confirm this.
Please note that this amount will be included in the SDL, UIF, ETI remuneration and
remuneration for the purpose of calculating the tax benefit for contributions towards
retirement funds.
Please Note: We advise employers to consult their auditor or a tax consultant to confirm
whether the dividends from restricted equity instruments are exempt or included in
remuneration.
3.3.7 Value of ‘B’ in the Residential Accommodation Fringe Benefit Calculation
Please note that the value of ‘B’ for the purpose of calculating the fringe benefit value for free
or cheap residential accommodation was not mentioned in the 2017 budget speech.
However, R75 750 is the new tax threshold and is usually the value of ‘B’ in the calculation.
Please Note: This value has not yet been promulgated.
Release Notes 4.8a Page 43 of 81
The maximum Basic Salary on which the SSNIT Tier1 contribution is based has increased
from GHC 20 000 to GHC 25 000, effective 1 January 2017.
An amendment has been made to the Ghana Tax Tables to incorporate the new maximum
value and the revised Tax Tables were sent to all our Ghana clients in January.
However, if you did not install this file (Ghanatax.zip) the changes are also part of this
release and will then be applied as from the pay period in which you installed this release.
Please Note: If you have any queries concerning backdating this information, please
contact your Africa Support Consultant.
4.0 Africa: Ghana – Change to SSNIT Tier 1
(Premier)
Release Notes 4.8a Page 44 of 81
Statutory changes effective 1 January 2017 have been published in the Kenya Gazette
Supplement, Acts, 2016. (No. 159, Acts No.38). These changes have been sent to all our
Kenya clients in January.
However, if you did not install this file (AfrTax_R47a_210703.zip) the changes are also part
of this release and will then be applied as from the pay period in which you installed this
release.
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 KShs150 000
to KShs300 000 per year.
The Annual Tax Rates has changed.
Annual Tax Table – effective January 2017
Income Band (KShs) Rate
First 134 164 10%
Next 126 403 15%
Next 126 403 20%
Next 126 403 25%
Over 513 373 30%
5.0 Africa: Kenya Tax Tables (Premier)
Release Notes 4.8a Page 45 of 81
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.
6.0 Africa: Nigeria Social Insurance Trust Fund
(Premier)
Release Notes 4.8a Page 46 of 81
6.1 Payroll Changes
6.1.1 Add Regular Earnings to the Calculation of NSITF
Now that the NSITF is no longer based on just Basic Salary, Housing and Transport
Allowances, the definition screens have to be updated and the Reports Setup Screen for the
NSITF Report needs to be adjusted to reflect all the earnings which the NSITF Contribution
is based on.
From the Main Menu click on Payroll > Definitions > Earning Definitions
Click on the <Change Mode> button in the bottom left hand corner
In the NSITF column select ‘Y’ for all the additional earnings you would like to add
Please Note: Only Earnings of a regular nature will be included in this calculation. Fringe
Benefits, Employer Contributions and Statutory Contributions are not considered
Remuneration. Specifically excluded is Pension Contributions, Bonuses, Overtime and
Irregular/Once-off payments.
6.1.2 Amend Report Setup
After the definition screen has been updated you need to update the NSITF Contribution Report Definitions
From the Main Menu click on Reports > Nigeria Reports > NSITF (Actuals and Budget) >
Report Setup
Add the additional earnings you flagged for NSITF on the Earning Definitions Screen
Release Notes 4.8a Page 47 of 81
Zambia’s 2017 National Budget was delivered to the National Assembly by the new Minister
of Finance, Honorable Felix Mutati, MP on Friday 11 November 2016.
These changes have been sent to all Zambia clients in January 2017. However, if you did not
implement this yet, these changes are also part of this release and will then be applied as
from the pay period in which you installed this release.
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, 2017. This Act
introduces a new Statutory Contribution for employers in Zambia.
Contributions
Contribution is 0.5% of the Gross Emoluments payable to an Employee including a Casual
Employee. This is only paid by the Employer and contributions are made on a monthly basis.
Basis of the Contributions
“Emoluments” means any Salary, Wage, Overtime or Leave Pay, Commission, Fee, Bonus,
Gratuity, Benefit, Advantage (whether or not that advantage is capable of being turned into
money or money’s worth), Allowance, including Inducement Allowance, Pension or Annuity,
paid, or granted in respect of any employment or office, whether engaged in or held.
Please Note: According to the SDL Act, Emoluments exclude any amount paid to an
Employee by way of Pension Benefit. Pension Benefit includes any Pension,
Compensation, Gratuity, Severance Pay, Repatriation and other similar Allowances
received in respect of a person’s services at cessation of employment or expiry of contract.
Exemptions
The levy is not payable by:
An employer in the public service or a local authority
An employer whose annual turnover is below K800 000; and
A public benefit organization (PBO) approved as such under the Income Tax Act (ITA)
Administration and Payment of Contributions
The due date for payment and return filing of SDL is the 10th of the month following the
month in which the SDL becomes due.
The SDL will be paid into the Technical Education, Vocational and Entrepreneurship Training
Authority Fund. However, the SDL remittance shall be collected by the ZRA.
7.0 Africa: Zambia Statutory Changes (Premier)
Release Notes 4.8a Page 48 of 81
SDL will be administered under the ITA. Penalties under the ITA will be applicable for non-
compliance. Late return filing and payment of SDL would attract penalties and interest as
provided for under the Income Tax Act.
Please Note: The SDL Definition Line and the Method of Calculation needs to be added
manually. Please call your Africa Support Consultant for assistance.
7.2 NAPSA Ceiling Increase
As from 1 January 2017, the new NAPSA ceiling is K17 892.20. The maximum an Employee
or Employer will contribute per month at 5% this year is K894.61.
Please Note: The adjustment to your NAPSA Method of Calculation to align with the new
ceiling needs to be done manually.
7.3 New PAYE Tax Tables
The Minister proposed an increase to the exempt threshold for Pay As You Earn (PAYE)
from K3 000 to K3 300 per month; as well as an increase to the top marginal tax rate from
35% to 37.5%.
2017
Annual Income
Tax Rate
From (K) To(K)
0.00 39,600.00 0%
39,600.01 49,200.00 25%
49,200.01 74,400.00 30%
74 400.01 and above 37.50%
2016
Annual Income
Tax Rate
From (K) To(K)
0.00 36,000.00 0%
36,000.01 45,600.00 25%
45,600.01 70,800.00 30%
70 800.01 and above 35%
Release Notes 4.8a Page 49 of 81
The following section will only apply to you if you are licensed for Job Management and
Extended GL and the Extended Flexi General Ledger and Cost Screen must be selected
on the Company Miscellaneous Screen. This feature is specifically used by the Municipalities
in RSA, but is available to everyone.
The minimum requirements of the mSCOA Budget Module has been published. We
reviewed the current Budget Module in the light of the new requirements and realised that we
need to make a few amendments.
We also received some feedback on the module after implementation at one of our
Municipalities and realised that we need to cater for Global Increases on Budget Values.
8.1 Increase of Budget Information per Job
Up until now the options on the screen allow you to create a Budget for a new year by
copying the values of the current Budget Year to the Next Budget Year and then applying an
Increase Percentage.
To access the Budget Screen:
Main Menu > Personnel > Job Management > Change Job Code Definitions
The following enhancements have been made:
8.0 Budget Module- mSCOA (Premier)
Release Notes 4.8a Page 50 of 81
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 51 of 81
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 52 of 81
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 53 of 81
Income Verification enables organisations to provide their employees’ payslip information to
registered Financial Services Providers (FSP), through a secure platform managed by Sage.
Participating FSP’s can then access the necessary payslips once the individual provides
consent to the FSP during a financial application.
9.1 How it Works
Historically, when applying for finance through a Financial Service Provider (FSP), ‘John
Brown’ would have been required to provide 3 months worth of payslips as well as the other
legally required documentation (FICA, Bank Statements, ID, etc.). Going forward, if John’s
employer is participating in the Income Verification programme, then John simply has to give
the FSP consent to request the necessary payslips electronically.
9.2 Benefits to Employer and Employee?
Income Verification presents a range of benefits to both the company and the individual,
including the following:
There are no additional costs to the employer or employee.
Reduced phone calls from creditors to businesses for verification of employee income.
Reduced phone calls from creditors for verification of employment.
Stronger compliance to the POPI Act (Protection of Personal Information).
Reduces the need to supply physical documentation when applying for credit.
Supports responsible lending practices.
Reduces the time that employees spend out of the office to complete credit applications.
Applications take less time to complete and receive approval from the FSP.
Fully automated process.
Consent driven program, eliminating abuse and fraudulent requests of information.
Independent audits rated the security model of the highest standard internationally.
9.3 Income Verification Setup Process
In Non-Monthly Companies, during the Start New Period process to a new Month, and in
Monthly Companies during each Start of Period process, the following message will be
displayed:
9.0 Income Verification (Classic/Premier)
Release Notes 4.8a Page 54 of 81
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 55 of 81
Main Menu > Company Miscellaneous > Miscellaneous 4
The activation or removal of this tick will be recorded on the Audit Logger File.
9.4 Access Control
If the user doing the Start New Period does not have access to the Company Miscellaneous
Screen, then the Income Verification Message will not be displayed.
Only users with access to the Company Miscellaneous Screen will see the message during
the Start New Period process and be permitted to change the ‘Participate in Income
Verification’ tick on the Company Miscellaneous Screen Tab 4.
9.5 Uploading of Payslips
If the ‘Participate in Income Verification’ tick on ‘Company Miscellaneous Tab 4’ is on, then:
When printing Normal New PDF Payslips from the system, an indicator will be set to
indicate that the Payslips are already created.
If the client does not use PDF Payslips, then Basic PDF Payslips will be created during
the Start New Period process.
All Payslips for Employees with either an ID or a Passport or both, will be saved in a new
Data Base: SCExt.vdb4. This DB is created in C:\Users\Username\AppData\Local\Sage
Connected Services\Data
During Start New Period, the following message will be displayed, when the Payslips are
saved to the DB:
The local DB will be cleared when the Payslips are successfully uploaded to the secure cloud
platform.
The Upload of Payslips will be recorded on the Audit Logger File.
Release Notes 4.8a Page 56 of 81
The Employee Work Address can either be entered on the Employee Address Tab or by
linking the Employee to a Work Address Code. Up until now, the Work Address Code has not
made provision for the Country Code.
This meant that once you have linked the Employee to the Work Address Code, that you
would still need to select or enter the Country Code. Clients kept forgetting to do this, which
causes errors when creating IRP5 Certificates in RSA Tax Countries, because it is a
mandatory field.
10.1 Work Address System Description Code
To access the Work Address System Description Code from the Main Menu:
Payroll > Definitions > System Description Codes > Work Address
10.1.1 Conversion
During conversion, the Country Code field will be added to all existing Work Address Codes
that are defined under System Description Codes.
The Country Code field will default the Code according to the Tax Country of the Company:
ZA - RSA
BW – Botswana
GH – Ghana
LS – Lesotho
MZ – Mozambique
10.0 Work Address Code (Classic/Premier)
Release Notes 4.8a Page 57 of 81
NA – Namibia
NG – Nigeria
SZ - Swaziland
Please Note: In Other African Tax Country Companies, the Country Code will default
to ’ZA’, because it is not possible to default to the actual Country Code. Remember to
amend the Country Code by going into the Work Address Code, entering on the Country
Code field and selecting the applicable Country Code.
10.1.2 Adding Work Address Codes
When you add a new Work Address Code and you get to the Country Code field, the County
Code Look-up List will display and the applicable Country Code, determined by the Tax
Country of the Company, will be highlighted.
In RSA Tax Countries, the Country Code field is mandatory. In other Tax Countries, this field
is optional.
10.2 Employee Address Details Tab
If the Employee Work Address is linked to a Work Address Code, then Country Code field
will now be disabled, together with the rest of the Work Address entry fields. This is because
the Country Code will now display according to the Work Address Code to which the
Employee is linked.
Release Notes 4.8a Page 58 of 81
The Country Specific Reports for Swaziland have been added under the Reports option on
the Main Menu.
The Statutory Reports for the Swaziland Tax Country have been run from the Reports and
Maintenance Menu until now. Swaziland customers will have the option to use either the
existing reports or the new reports as described in this document. It is advisable to start
using the new reports as the existing reports will no longer be maintained.
Basic or Advanced Access Control must be set to Report Level 5 to allow access to the
Country Specific Reports Screen.
Please Note: Only one user can access the Reports Menu for a specific Tax Country at a
time. If another user is already printing reports and you try to access the Country Specific
Reports Menu, or you select that same Company via the Multiple Company option, you will
be stopped with a message.
11.1 Reports Menu
All the Statutory Reports that are available for Swaziland Tax Country will be listed on this
screen.
11.0 Reporting: Swaziland - Country Specific
Reports (Classic/Premier)
Release Notes 4.8a Page 59 of 81
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 60 of 81
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 61 of 81
The Reports will be saved either when the .CSV file is created in Excel or by clicking on the
<Save> button.
11.2 Reports in Excel
When clicking on the <Continue> button, Excel will automatically open. Depending on your
Excel Macro Security Settings you will then click on the <Enable Content> button, usually
found in a yellow line above the worksheet. The user will then be prompted to select the
Sage VIP directory. The report will automatically be populated with the applicable values.
Once populated you will immediately be requested to select the directory to which this report
must be saved and to confirm the report name, which may be edited at this point.
To remove the step for “click on the <Enable Content> button” you can change your Macro
Security Settings:
In Excel select the Developer Tab on toolbar
Select Macro Security
Select Macro Settings
Select the option “Enable All Macros (not recommended, potentially dangerous code can
run)
Please Note: If the report does not seem to populate correctly, please consult the section
regarding the Windows Regional Settings of your computer.
Please Note: In order to run the reports successfully the minimum requirement for
Microsoft Office Excel is Version 2007 and up. Also ensure that the latest Service Packs
and Upgrades\Updates for your Windows and Office versions are installed.
11.3 Audit Log File
The Audit Log File will record the Report that has been printed.
Please Note: Changes made to the Report Selections will not be recorded on the Audit
Log File due to the large number of changes that can be made.
Release Notes 4.8a Page 62 of 81
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 63 of 81
11.5 Swaziland Reports
The following Reports are available for Swaziland:
Report Monthly Quarterly Annual
SNPF Report X
PAYE Monthly Declaration Return X
PAYE 16
X
PAYE 15
X
PAYE 05 X
IRP5 Electronic Submission File
X
11.5.1 SNPF Report – Electronic NPF200 Form
The electronic NPF200 Form is created when running this report. The report includes details
of employee’s statutory and voluntary contributions towards Swaziland National Provident
Fund. This form can be emailed in Excel format to SNPF or printed on plain paper for
manual submission to SNPF.
In addition to the initial Report Setup Screen, the report has one other Setup Screen. When
running the report you must indicate the following:
Graded Tax Number: Select from the dropdown the field used to indicate the
employee’s Graded Tax Number. The options to choose from are:
– Deduction Line Reference field
– Tax Number field
– Tax Office field
PIN Field Used: Select from the dropdown the field used to indicate the employee’s
PIN\Tax Number. The options to choose from are:
– 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 64 of 81
Contact Person: Indicate the full name of the person responsible for submitting this
return.
Job Title: Indicate the job title of the person responsible for submitting this return.
Wage Limit: Do not change the default value of 2 300.00 unless the limit is increased as
per instructions from the Swaziland Revenue Authority – this value is used to apply the
maximum value for the Wage amount used in the calculation of the SNPF Statutory
Contribution.
11.5.2 PAYE Monthly Declaration Return
This form is a monthly PAYE return and can be submitted electronically if the company is
registered for e-tax, otherwise the form can be duplicated out of the payroll system and
submitted as is.
Income from Lump Sum Payments, such as Notice Pay, Severance Pay, Redundancy
Payments etc. should not be included in this return.
In addition to the initial Report Setup Selection Screen, the report has one other Setup
Screen. When running the report you must indicate the following:
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 65 of 81
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.
11.5.3 PAYE 16 Reconciliation of Tax Deductions Made and of Stock of Certificates on
Hand
This report is for the reconciliation of Tax Deductions made for the applicable Tax Year and
of stock of Tax Certificates. This report can be used to complete the PAYE 16 Form as it
must be submitted on pre-printed stationery.
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 66 of 81
– 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 67 of 81
11.5.4 PAYE 15 Annual Return of Salaries
This report is an annual report with detail per employee of the income earned and taxes paid
for the applicable tax year.
This form can be printed out of the payroll on normal paper and submitted manually to the
Revenue Authority as is.
Any income or payments that are exempt from tax must be excluded from this report.
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 68 of 81
11.5.5 PAYE 05 Employee Tax Certificate
This report generates the Tax Certificates. You have the option to print to plain paper or on
official pre-printed stationery.
No Tax Certificate Numbers are stored on the payroll.
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
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 69 of 81
To Print 2 Copies per Employee of the PAYE05 Tax Certificate:
The PAYE05 Pre-Printed Stationery are packaged as two certificates per Tax Certificate
Number – the one is the original and the other a copy. When printing to the pre-printed
stationery and you have to print two copies, you have to select the following options when
printing from Excel:
Select to print 2 Copies
Select Uncollated so that Excel prints 2 copies of the same certificate before starting the
next one.
Please Note: The Password requirements if you have selected to print the PAYE05 Tax
Certificates to PDF, is as follows:
If the employee has an ID Number, we use this as the password.
If the employee has a Passport Number, we use this as the password.
If no ID Number or Passport Number, then we use the Date of Birth of the employee in
date format yyyymmdd.
11.5.6 IRP5 Electronic Submission File
The Swaziland Revenue Authority (SRA) introduced an electronic submission whereby
employers can fill in an excel spreadsheet containing the employees’ details and send it back
to the Revenue Authority after Tax Year End. When you make use of this newly designed
electronic spreadsheet, tax certificates are not required to be submitted to the SRA. If you
still make use of the other forms of reconciliation, the tax certificates must, however, still be
submitted to the SRA.
The excel file must be emailed to [email protected].
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 70 of 81
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 71 of 81
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.
12.2 Other Report Changes (Premier / Classic in some instances)
Country Report Detail
Ghana
IT51S Annual Tax
Deduction Return
Removed this report from the Ghana report menu as
this report is not in use anymore.
Ghana IT51 Monthly Tax Removed this report from the Ghana report menu as
12.0 Reporting: Africa – New and Changed Reports
(Premier)
Release Notes 4.8a Page 72 of 81
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
PAYE Deductions
Return
Wording on Template was not displaying correctly –
this has been resolved.
Kenya Cooperative Bank
EFT File New Bank File.
Kenya P10D Quarterly
Return Employer's PIN was not populating – resolved.
Kenya P9 Tax Deduction
Cards
Updated with Certificates with the 2017 statutory
changes for Personal Relief and Mortgage Relief.
Kenya P10 iTax Report Updated the column headings with the 2017 statutory
limits for Mortgage and Personal Relief values.
Lesotho P19 PAYE Monthly
Tax Return
The summary was printing the correct values but the
detail report excludes values for Overtime, Leave
Allowances, Supplementary values and Strike
amounts.
Malawi P9 Tax Certificate
Added a field on the User Form screen to enter the
name of the Company Representative – this will now
print on each Tax Certificate.
Malawi P9 Tax Certificate Added the option to print the P9 Tax Certificates to
PDF format.
Mozambique Tax Certificates
Added fields on the User Form screen to enter the Job
Title of the Company Representative and to populate
the “Posição” field with this value.
Populated the Computer Date when report was printed
in the “Data” field.
Mozambique Relacao Nominal
The report generated an error when no fields were
linked to the selections that indicate the employee’s
Occupational Professional Level, Grading Level,
Occupational Status and Occupational Category –
issue resolved.
Namibia PAYE4 Report
For non-monthly companies the current period values
were printing instead of the MTD+ values – issue
resolved.
Zambia P22 Tax Certificate The Gross Pay value was not populating for non-
monthly companies – issue resolved.
Zimbabwe P6 Tax Certificate
Changed the description of “Total Earnings” to “Total
Taxable Earnings”.
Added a separate field for Bonus Exempt Portion
under the Total Earnings section.
Exclude the Non-Taxable Earnings and Bonus Exempt
portion from total value for “Total Taxable Earnings”.
Release Notes 4.8a Page 73 of 81
When you do a Live UIF Submission Run, the usual message will display that the file has
been created and that it needs to be emailed:
As from this Release, when you click on <Continue> the Report will print and the following
message is displayed:
If you click on <Yes> an email will be created addressed to:
The UIF Submission files are already attached to the email and the subject of the mail is
“Declarations”.
If you click on <No>, the Report will print and you will need to email the submission yourself,
as always.
13.0 Reporting: RSA - UIF Submission Report (Real
Number 651) (Classic/Premier)
xxxxxxxx
Release Notes 4.8a Page 74 of 81
14.1 Instructions to Import Reports
Reports can either be imported from Batch Import Reports or from the Export/Import Reports
option on the Reports Menu.
14.1.1 Batch Imports
Un-tick the Select All option.
Tick the Module(s) where the Report(s) listed below can be found.
Continue
The Report List is displayed with all the reports set to Y to import.
Un-tick the Select All option.
Find the applicable Report and select it.
Continue will import the selected reports.
14.1.2 Export/Import Reports Option
In the example below, we are presuming that your VIP Directory is on Drive C. The
Export/Import Reports option is found under Reports on the Main Menu.
The Import and Export Reports screen will be displayed.
Complete the following information:
Click on the Radio button next to Interface file, as you will import the Reports from your C
Drive.
14.0 Reports and Report Writer Codes
(Classic/Premier)
Release Notes 4.8a Page 75 of 81
Enter the required Drive letter, e.g. C.
Then complete the following information:
Click on the Radio button next to Company
Select all the applicable companies to where the new reports must be imported, from the
Company Selection Screen, in this example only Company 900.
Click on Continue.
You will be prompted to enter the Real Number of the Report, e.g. 630.
Enter the Real Number and click on Continue.
The Status of the Imported Report will be shown on screen.
Click on Continue and enter the Real Number of the next Report to be imported.
14.2 New Standard Reports
The following Standard Reports need to be imported.
14.2.1 RSA Users (Classic/Premier)
Report Real Number Report Name
767 ETI Validation Report
14.3 Changed Standard Reports (Classic/Premier)
The following Standard Report has been amended and will need to be imported. Overwrite
existing Report.
14.3.1 All Users (Classic/Premier)
Report Real Number Report Name
552 Personal Information
Release Notes 4.8a Page 76 of 81
14.4 RG Codes
14.4.1 All Users (Classic/Premier)
These RG Codes are found under the Employee Information group on the RG Code look-up
list:
Code RG Code Label Length Description
27831 Work Country Cde 2 Work Address Country
Code link from the
Employee Address Screen
27832 Work AddrCountry 36 Work Address Country
Code Description
Release Notes 4.8a Page 77 of 81
At certain times of the year, our support centres experience extremely high call volumes. To
assist you, as a customer, in finding answers to your questions without having to wait for the
assistance of a Consultant, we have added a Support <Lifeline> button at the top of the
Company Selection Screen.
When you click on <Lifeline > you will be redirected to an online Knowledge Base with
various ‘How To’ documents that can assist you, step-by-step, to solve the most frequently
asked questions.
There will also be buttons at the bottom of the screen that, when you click on them, will
redirect you to information relating to the specific period of the year you are working in e.g.
‘How to make a copy system’ at Tax Year End.
Please Note: Your Site Code and licensing information is validated against our CRM
Database. If for any reason this information does not correlate, you will need to logon to
the Customer Zone and will not be taken directly to the Knowledge Base.
15.0 Support Lifeline (Classic/Premier)
Release Notes 4.8a Page 78 of 81
The following issues have been resolved in this release and the requests listed here have
been implemented.
Summary/Area Description
Employee IS screen Work Address Country Code will now default to ZA in all RSA
companies when a New Employee is added.
RSA UIF Submission When printing the UIF Submissions Report, you got a Status 23
error on VPCNT000.pay.
Support Help Email Wording on the Support help email is changed to guide client in
supplying more information.
Referral Email
Updated with latest information on referral commission and
competition. Also allow the user to indicate the product required
by the referral company.
System Rebuild Now includes the VPAPIxxx.PAY file in the rebuild process.
Status 94.10
When a user got a Status 94.10 error on the Employee IS
Screen, the message incorrectly referred to the ETIWAGE.PAY
file and not the VPEWG.PAY file.
SEZ Code
A new message, giving more information, has been added to
the System Descriptions > ETI Codes about the use of the SEZ
Code.
Basic Company – Setup
of ETI Wage
Components
When the user selects XS Screen line items to indicate where
the Wage Rate Per Hour is, the changes made to the Wage
Rate did not save when you exited the screen.
Employee Medical
History Screen
If the Medical Aid Start Date is after the Employee Date
Engaged and you enter backdated beneficiaries in January and
February 2017, the system incorrectly calculated the Medical
Aid Rebate according to the Periods in Service instead of using
the periods contributed towards Medical Aid.
16.0 Items Resolved / Requests Implented
(Classic/Premier)
Release Notes 4.8a Page 79 of 81
Personal Information
Report (RN 552) Incorrect page breaks are now corrected.
NBCRFI Export When doing the NBCRFI Export, the last column did not fit onto
the page. This has been resolved and all columns will now print.
RSA Equity Report Corrected a spelling mistake on the merged document.
RSA Equity Report
If the Previous Period Date is used, the Workforce Profile
printed information for the Current Period, with the result that
the counts on the Workforce Profile differed from the counts on
the Income Differential.
RSA Equity Report Numerical targets did not reflect values for Disabled employees
on the Word Document.
RSA Equity Report
If the user included Multiple Companies and the same
Employee Code is used in more than one company and the
Employee Level and Info is different in the 2 companies, the
user had to print separate reports. The 2 employees will now be
counted correctly.
Delete Employee & ETI
history
ETI History does not delete when deleting an Employee. If a
new Employee is then added, using the old Employee’s Code,
all the old ETI transactions are reflected on the new Employee.
List/Query Various
Numbers
Password settings on the PDF Printing Setup Screen were
ignored when users printed this report.
Start of New Tax Year
When a Weekly company is rolled-over at the end of the Tax
Year, a calendar displays, allowing the user to select the new
Tax Year End Date. Depending on the selection, the system will
determine whether it is a 53 or 52 week Tax Year. If the client
did not make a selection and just entered on <Continue>, the
system took the selection as 53 weeks and did not confirm with
if it is ok with a message. The default will now be 52 weeks.
When the client prints the Support Letter on the Initial Entry
Screen when a company has 53 or 27 periods in the Tax Year,
the Support Letter reflects either 52 or 26, instead of the 53 or
27 periods.
IRP5 Tax Certificates
IRP5 codes for Medical Tax Credit (4116 and 4120) is not
printing on the Tax Certificates
If you do not print the Secure Certificates the Company Name is
not printing on the Payroll Tax Certificate. The correct
information is however exporting in the IRP5 file.
Release Notes 4.8a Page 80 of 81
IRP5 Tax Certificates
for ESS and InfoSlips
The information is not aligning with the templates in use.
Tax too high in
February
If the company is on Release 4.7d and the Employee is on
Normal Tax, then the system is doing the Final Tax Calculation
with the wrong Tax Deductible value. It only uses the Current
Period Tax Deductible value and not the YTD values.
Release Notes 4.8a Page 81 of 81
If you have converted your Companies from Release 4.7a, you will also have all the features
added in Release 4.7b, 4.7c and 4.7d.
Please consult the specific Release Notes for more details.
DISCLAIMER
Although care has been taken with the preparation of this document, Sage HR & Payroll makes no warranties or
representations as to the suitability or quality of the documentation or its fitness for any purpose and the client uses this
information entirely at own risk.
COPYRIGHT NOTICE
© Copyright 2016 by Sage HR and Payroll, a division of Sage South Africa (Pty) Ltd hereinafter referred to as “Sage HR &
Payroll”, under the Copyright Law of the Republic of South Africa. No part of this publication may be reproduced in any form or
by any means without the express permission in writing from Sage HR & Payroll.
17.0 Items Included from Previous System
Enhancements (Classic/Premier)