Customer Support Talk Newsletter

March 2023

RSA – Budget Speech 2023/2024 Changes

For the 2023/2024 tax year, we have prepared a range of tools and resources to assist you.

• Budget Speech 2023 Infographic
• Compact Payroll Guide
• PAYE 2023/2024 manual tax calculator
• Comprehensive guide affecting the payroll

The PaySpace system has been updated for the 2023/2024 tax year, with all budget speech changes now fully implemented. As a result, all March 2023 open runs have been recalculated to reflect these updates.

Annual Reconciliation Declaration (EMP501) submission period

We want to remind you that the Annual EMP501 Reconciliation Submission period will run from 1 April 2023 to 31 May 2023. At PaySpace, we are committed to providing the support and assistance you need to successfully finalise your tax year-end submissions.

In preparation for your submission:

• Check your payments and reconciliations processed at the end of each month.
• Post correction runs if any adjustments are needed to correct your employee financials.
  Navigate to Payroll Cycle > Payslip Pay Dates
• Check your Company demographic information and Employee personal information on the system.

Contact [email protected] if you need assistance.

Return of Earnings Submission 2023

The due date for submitting the 2022 Return of Earnings (ROE) has been extended from 1 April 2023 to 31 May 2023.

In addition, the COIDA earnings threshold has increased to R563 520 per annum, effective 01 March 2023. We are pleased to confirm that this new limit has already been implemented in the system, effective March 2023.

Skills Development Submission 2023

The deadline for the submissions is 30 April 2023.

Changes to BCEA Earnings Threshold and National Minimum Wage Act from 1 March 2023

Firstly, the BCEA (Basic Conditions of Employment Act) earnings threshold has increased to R241 110.59 per annum, effective 1 March 2023.

Secondly, the National Minimum Wage has increased from R23.19 per hour to R25.42 for each ordinary hour worked.

21 March 2023 Public Holiday

Please note that PaySpace will be closed on 21 March 2023 as it is a Public Holiday in South Africa. Our offices will be closed on this day, but our support team will be available to assist you with any queries or concerns you may have the following business day.

Bonus Tax Spread (South Africa / Namibia)

We want to remind you of the option for employees to spread the tax on a guaranteed bonus over the tax year. To take advantage of this option, employees should ideally set up the tax spread in March, which will result in them being taxed on a monthly portion of the bonus instead of paying all the tax in the month of bonus payout.

There are two options available for spreading the tax:

• Tax can be spread until the Bonus is paid or
• Tax can be spread over the Tax Year

If your Tax Spread has not been set up prior to the month of payout, the tax will not be spread and will be recovered in full in the month of payout.

If the provision is cancelled before the end of the provision period and the bonus has not yet been paid, the tax already paid on the provision will be refunded, and no bonus payout will be made in the month of payout.

To ensure a payout is made where applicable:

• Check your employees recurring screen to ensure the setup is as expected and the pay date is set for
  the month of payout.
• The check box to pay the Bonus Tax Spread is ticked.

Any issues can be directed to [email protected].

Did you know?

Question:

Which report can be generated to verify employees’ non-financial information that will be included in the CSV Tax File?

Answer

Generate the Non-Financial Report from the Tax Certificate Run screen to verify employees’ information that will be included in the CSV Tax File.

Question:

How to exclude an employee from a tax file by inserting a manual tax certificate number?

Answer

To exclude an employee from the Tax File, insert their Manual Tax Certificate Number on their YTD Tax Certificates screen by editing the relevant record.

Navigate > Employee > Payroll Results > Tax Certificates / Historical Drill Down

Question:

Which reports are necessary to generate for the Annual Submission?

Answer

• EMP501
• EMP201
• EMP501 ETI Breakdown Report
• ETI Take On Report
• Component Variance Report
• Payroll Reconciliation Report
• Dynamic Employee Details
• New Engagements and Terminations

Videos

Below are a few videos that might be helpful:

• Finalise the February run and close all the runs for the tax period
• Processing Corrections
• Verify Employee Information

February 2023

South Africa Budget Speech

We are excited to bring you the latest updates on tax-related matters in South Africa.

The eagerly awaited National Budget speech is scheduled for 22 February 2023. We look forward to hearing from the Minister of Finance, Mr Enoch Godongwana, in his inaugural address. Stay tuned for updates on the budget speech and its implications for individuals and businesses.

In line with our commitment to keeping you up-to-date on all tax matters, we are pleased to announce that PaySpace will release the latest tax tables for 2023/2024 end of February.

For any additional Budget Speech 2030 resources click here

Filing Season 2023

The Tax Year End season is fast approaching, and PaySpace is available to support and assist you with finalising your tax year end submissions. We understand the importance of accurate and complete tax submissions to avoid potential penalties or fines. With our expert team available to assist, you can be assured of a smooth and stress-free process.

Employees Logbooks

If employees receive a travel allowance from an employer, they can claim a deduction on assessment of their annual income tax return for the use of a private motor vehicle for business purposes.

• Record the motor vehicle’s closing odometer reading on the last day of February.
• Calculate the total kilometres for the full year
• Calculate the total business kilometres for the year

Correction Runs for February

IMPORTANT REMINDER: There is an option available to insert a February 2023 Correction Run for employees should financial corrections need to be posted for the current tax year, i.e. 2022/2023.

If you identify any errors in your financial records for the current tax year, the February 2023 Correction Run can be used to rectify any mistakes. This option will be available until the main pay run for March 2023 closes.

Please note that after the March 2023 main pay run closes, the process of inserting an interim run attached to February 2023 will have to be logged with [email protected] 

Navigate to Payroll Cycle > Payslip Pay Dates

Check Run Setups for the next Tax Year

With tax year end approaching, there may be runs reflecting in the current tax year that should be moved to the new tax year. Therefore, it is important to ensure that all payroll records are correctly allocated to the correct tax year for tax reporting purposes.

Changes will need to be logged with [email protected] 

Tip of the Month

Can I delete an interim run created in error?

Runs can be deleted if there are no financial records inserted on employees. If financials are inserted and then removed, a warning may be prompted that the run cannot be deleted due to financial dependencies. The run can then be closed.

Videos

Below are a few videos that might be helpful:

• When should an interim run be created
• Check run setups for the next tax year
• Can I delete an interim run

January 2023

Happy New Year, and welcome back!

Medical Aid Rates – 2023

We are pleased to inform you that the Medical Aid tables for 2023 have been updated on our system. However, if you have any medical aid rates that have not been updated, please email [email protected] for assistance.

Annual Increases

As we approach the time of year when many of you process annual increases, we remind you to follow these guidelines when capturing the increases:

• Do not override the existing employee pay rate record.
• Create a new pay rate record.
• Increases can be captured via Employee > Payroll Processing > Pay Rate Details
• Or using Bulk Actions > Action Type: Pay Rate Details

Company Cars

For those of you whose employees make use of company cars, we encourage you to update the following fields when changing vehicles:

Employee > Payroll Processing > Recurring Payroll Components > Fringe Benefits > Company Car Fringe Benefit

The ‘Determined Car Value Excluding Vat’ must be updated with the new vehicle’s value to ensure that the Fringe Benefit calculates correctly.

Leave

On Company Settings under the Leave tab, there has been an update to the below setting. When enabled, an email notification will be sent to Employee Self Service Users notifying them that leave will expire in the number of days specified.

There has been an update to the below Leave settings on Company Settings under the Leave tab. When enabled, an email notification will be sent to Employee Self Service Users notifying them that leave will expire in the number of days specified.

Config > Basic Settings > Company Settings > Leave

Please refer to ‘What’s New’ for more details.

Company Financial Statements

You can view and export your Company Financial Statement on the system by navigating to Config > Financial > Invoices and Receipts.

Did you know?

Question :

Can I restrict employees from applying for a specific leave type attached to a Leave Scheme?

Answer :

No. Leave types cannot be restricted on ESS if attached to a Leave Scheme. You will have to end the Leave Type by adding a Stop Date; however, this will affect all employees attached to the Leave Scheme.

An alternate would be to create a new Leave Scheme and attach the applicable Leave Types.

Videos

Below are a few videos that might be helpful:

• Create a new pay rate record
• Changing Company Cars and capturing the new Fringe Benefit
• Leave Settings on Company Level

Seasons Greetings to everyone. We would like to extend our wishes to you and your loved ones for a joyous festive season. We would also like to thank you for your continued support throughout this year 2022.

May the New Year of 2023 bring you continued success.

Festive Season Operating Hours

Please note that we will close at 13:00 on Friday, 23 December 2022.

We will also be closed on all Public Holidays:

• • 16 December 2022
  • 25 December 2022
  • 26 December 2022
  • 27 December 2022
  • 2 January 2023

Medical Aid Rates – 2023

The 2023 Medical Aid tables will be updated before the end of 2022.

Reminder: Public Holidays for 2023

With 2023 around the corner, we are happy to share that all public holidays for 2023 have been updated for all countries within the system.

27 December 2022

The 27^th of December 2022 has been declared a Public Holiday. A pop-up notification has been added to the system to remind customers of the upcoming holiday.

Please note that existing Leave Transactions will not update automatically. Users can run a Leave Transactions Report to check all leave taken for the period and make the necessary adjustments.

• • Capture an adjustment to correct the leave balances on the Employee > Leave > Adjustments Screen or
  • Post Leave Adjustments via Bulk Actions > Action Type : Leave Adjustments

Bonus Tax Spread (South Africa / Namibia)

If Bonus Payments to your Employees do not match your Bonus Tax Spread setup.

• • Review your Bonus Tax Spread setup under Payroll Components to ensure the setup is correct.
  • Check your Employee/s Recurring setup to ensure that your Employee/s have the correct setup.

If your setups are showing as expected, contact us at [email protected] to assist you.

Employment Equity Deadlines

Just a friendly reminder that the Employment Equity Reporting for 2022 is due by 15 January 2023. The Employment Guide can be used to complete your submission.

Videos

Below are a few videos that might be helpful:

• • How to Terminate an Employee
  • Viewing Employee Leave Balances
  • Viewing the Leave Calendar

Season Greetings and Happy New Year!

This month’s Newsletter will focus on Bonus Tax Spread / Run Management / Payroll Shutdown Process, and Public Holidays for 2023.

Bonus Tax Spread (South Africa / Namibia)

Employees may select to spread the tax on a guaranteed bonus over the tax year. This should ideally be processed in March and will result in employees being taxed on a monthly portion of the bonus instead of paying all the tax in the month of bonus payout.

With December 2022 nearing, we encourage you to check your Bonus Tax Spread setups to ensure that process of payouts are done timeously and efficiently. Please consider the following to ensure a smooth payout:

• There are 2 options
  • Tax can be spread until the Bonus is paid or
  • Tax can be spread over the Tax Year
• If your Tax Spread has not been set up prior to December 2022, the tax will not be spread and will be recovered in full for December 2022, when the bonus is paid.
• If the provision is cancelled before the end of the provision period and the bonus has not yet been paid, the tax already paid on the provision will be refunded, and no bonus payout will be made in December.
• To ensure a payout is made where applicable:
  – Check your employees recurring screen to ensure the setup is as expected and the pay date is set for
           December 2022.
  – The check box to pay the Bonus Tax Spread is ticked.
         
• Any issues can be directed to [email protected]

Opening Closed Runs

When processing payroll and changes are needed to payroll periods in a closed status, be mindful of the following options prior to opening closed runs with payments made on your Declarations.

• If you want to open the previous month’s run, it would be advisable to open the run prior to the 7^th of the following month, as financials have not been finalised, and payments have not been made on monthly declarations to SARS.
• There is always a risk with opening runs that are in closed status, and financials have been declared. When opening a closed run, you run the risk of financials changing, which could impact payments made to SARS on your EMP201 declaration.
• Instead, creating an interim run attached to your last closed run to process your changes would be advisable.
• If your interim run is created prior to the monthly main run for a specific period, tick the below option to ensure the tax calculates correctly on the interim run.
  Navigate to Payroll Cycle > Payslip Pay Dates > If you would like to add a new interim run, click here.

• It is not advisable to change run setups if there are payslips and financials recorded. Instead, create a new frequency to accommodate the new dates.
• Runs cannot be deleted if there are financials recorded.

For more information, contact us at [email protected] to assist you.

Shutdown Process for December 2022

Should you have a Company Shutdown over December 2022 / January 2023, PaySpace does cater for payments over this period.

See the example below for reference on Leave Payout.

On Payroll Components, search for ‘Shutdown‘ to see the components available over Shutdown.

Step 1

• Leave Shutdown Component – Use this component if the employees are on leave from the current open run.
• Leave shutdown in advance – Use this component if the employees are on leave from the next open run.
  

Step 2

• Add a note component that calculates after the leave pay weeks to create the shutdown calculation, i.e. Early Storage.
  
• Edit the storage component and override formula.
• In the override formula, Java Script needs to be applied. This will ensure that the leave shutdown calculation is only activated when leave pay weeks have been posted on the employee’s payslip.

Step 3

• Once the leave shutdown has been updated, the relevant components that need to calculate during the shutdown period can be updated.

If you need assistance with the setup, this may require a consultation. Please reach out to [email protected]

Public Holidays

The Public Holidays for the 2023 Year have been successfully added to the system.

Videos

Below are a few videos that might be helpful:

• How to Open a Closed Run
• Which Report to run to view Employee Financials
• How to set a Cut-Off date for Claims

Welcome to the 2^nd edition of our Support Talk Newsletter. With the successful roll-out last month covering important topics, we focus on PAYE Employer Interim Reconciliation in this month’s edition.

South Africa: PAYE Employer Interim Reconciliation

With the Bi-Annual Tax Filing season 2022/23 deadline fast approaching, we encourage you to finalise your submission before the deadline for submission of 31 October 2022.

Videos

Need help with Bi-Annual submission? We have created the following videos to assist you with your Bi-Annual submission:

• How to export your test file?
• How to import your tax file into [email protected]?
• How to reconcile your PAYE / SDL / UIF and ETI?
• Important reports to print for Bi-Annual Submission
• Important reports to print for Bi-Annual Submission should discrepancies be identified

Extended Support Hours

We have extended our support hours to assist you with finalising your submission. Our support consultants will be available, for extended support, on the following days:

• Saturday 29 October 08h00 to 12h00
• Monday 31 October till 19h00

Bi-Annual Submission Checklist

We have published a Payspace-Do_it_yourself_guide_2022 to assist you with the process to ensure a smooth and hassle-free submission.

Book an expert to assist

To minimise the pressure of finalising your submission, you can always book a consultant to assist you with the submission process. Should this be the option that best suits your needs, please click here.

Did you know?

We have created a section in our “How can we help” page where you can view all the latest news per country.

These changes might not be promulgated yet or still need to be verified/clarified with our advisors before being implemented on the system. However, we have found value in sharing this information with customers so that they know about changes coming.

In other instances, there is important compliance news that customers should be aware of, even though it does not result in a system change.

Navigate to “How can we help” via your profile picture at the top right > Click on PaySpace Wisdom listed as one of the menu options at the bottom > Click on Compliance News.

It is vital to visit the Compliance News regularly to stay updated with the latest news from the Compliance Team.

System Navigation

Exciting new enhancements to system navigation have been released.

• New way to change between companies and frequencies
• New next/previous buttons added on employee screens.

To find out more, please watch this short video.

We are excited to announce the launch of the Support Talk Newsletter, bringing you monthly reminders and updates within the Support space.

South Africa: PAYE Employer Interim Reconciliation

With the opening of Bi-Annual Tax Filing Season 2022/23, we encourage you to work through your payrolls and be prepared for your Bi-Annual Submission process.

Below are a few steps to assist in preparation for your submission process:

• Update your [email protected] software with the latest [email protected] software update.
  Log into [email protected] and check that you have done a backup before installing the latest available version.
• The submission period for the Bi-Annual Tax Filing season 2022/23 Reconciliation Declaration (EMP501) is 19 September 2022 to 31 October 2022.
• For a comprehensive Bi-Annual Submission checklist / Do It Yourself Guide, please download the Bi-Annual Submission guide that details guidelines on how to finalise your payroll, upload your files and complete your submission successfully.
• We have extended our support hours to assist you with finalising your submission. Our support consultants will be available on:
  Saturday 22 October 08h00 to 12h00
  Saturday 29 October 08h00 to 12h00
  Monday 31 October till 19h00
• We have an updated database of articles to assist with your submission process that is accessible at your convenience. To view, open PaySpace; on the top right corner, click on your name > How We Can Help > at the bottom, select PaySpace Wisdom > Knowledge Base > FAQs > Bi-Annual Submission.
• How do I import a Test File?
• How to make an [email protected] backup.
• [email protected] Error – ‘Code 3810/3860 Is Not Allowed If Code 4493 (4474) Is Specified.’
  
• Book your seat for the upcoming Mid-Year Payroll Tax Seminar Wednesday, 28 September 2022. The agenda includes Long Service Awards, Variable Remuneration, Paragraph 2(2B), and Tax Certificates.
• We are delighted to announce Mid-Year Tax Submission Workshops to assist with your training needs on the Bi-Annual Submission process. Click on the link for more information.
• If you are preparing for your first submission, let us assist you with a one-on-one consultation. Please log a ticket with our Professional Services team.

Employment Equity Reporting (EEA 2 & EEA 4)

The compliance team is enhancing the employment equity reports to ease the reconciliation process and accommodate unique scenarios.

We recommend that all customers wait until the employment equity enhancements have been released before submitting equity reports to the Department of Labour.

If customers currently submit manually (submission deadline 1 October 2022), we recommend that these customers should register to submit online as the deadline for online submissions is 15 January 2023.

Please keep an eye on the preliminary release notes for a summary of the employment equity enhancements.

The planned release date for the enhancements is October 2022.