ETI
Does the Employment Tax Incentive (ETI) apply to all employees receiving retirement fund payouts, or is it limited to certain types of employers?
This applies to all PaySpace payroll editions. ETI applies to employees who receive retirement fund payouts only if the payout comes from an employer-administered retirement fund. This means that the retirement fund must be a benefit provided by the ...
South Africa | Can I Amend ETI Payslip Values Via The ETI Take On Screen?
Yes. ETI values, that are system generated on the payslip, can be amended via the Bulk Actions > ETI Take On screen. Note: All data processed in the columns will override what is on the payslip, except the "monthly calculated ETI" column. The data in ...
South Africa: Transfers using the statutory override option for ETI
Employee Transfers Employees can be transferred between different frequencies in the same company and between different companies in the same company group. Navigate to the employee > On / Off Boarding > Transfer When an employee is transferred ...
Should the wage regulating measure or the national minimum wage be applied to employees when calculating ETI?
The higher of the Wage Regulating Measure or the National Minimum Wage Rate should be applied as the ETI minimum wage. Note! The employee must earn at least the minimum wage as specified by the higher of the National Minimum Wage Act OR a wage ...
How do I resolve payslip error: "Tax code 4118 MTD cannot be less than 0."?
The payslip error "Tax code 4118 MTD cannot be less than 0." will display when a user has captured a negative value on the Note component Employment Tax Incentive Adjustment that resulted in the employee's Month to date ETI ending as a negative ...
How do I process an ETI Correction?
An ETI correction needs to be processed through an ETI Take On. Navigate > Bulk Actions Select the Screen Type as Employee and the Action Type as Employee ETI Take On and download an empty template. Capture the relevant periods correct information to ...
How is ETI Remuneration calculated?
An employee's ETI Remuneration includes the cash remuneration that was paid to the employee as defined in Paragraph 1 of the Fourth Schedule to the Income Tax Act. The ETI Remuneration is calculated using the following formula: ETI Remuneration (Note ...
How is the ETI Remuneration gross up amount calculated if the employees remuneration hours is less than 160 hours a month?
The ETI Remuneration amount and Remuneration Hours are grossed up to 160 hours if the employee's ETI Remuneration Hours are less than 160 hours. Navigate > Employee > Payroll Processing > Edit Payslip > Notes Check the number of hours calculated on ...
How do I process an ETI Take-On?
Where a new company and/or frequency is registered on the system during the tax year, you have the option to process year-to-date figures on an employee’s record. The purpose of processing an ETI Take On, is to display ETI data correctly in the CSV ...
Why would ETI not calculate for an employee?
If one of the above conditions are met then ETI will not calculate for the employee - The employee is an Independent Contractor. If the Nature of Person of the employee is not type A - Individual with ID or Passport number, type M - Asylum Seeker, ...
How do I setup ETI?
ETI on PaySpace is calculated according to the qualifying conditions for ETI as specified in the employment tax incentive act 26 of 2013. To access the employment tax incentive act select the following link: Employment Tax Incentive (ETI) Act. The ...
Is there a way to exclude specific employees from Employment Tax Incentive (ETI)?
Yes. To prevent the company from calculating ETI, enable the "does not qualify for employment tax incentive" checkbox, under the Statutory Fields tab on the Basic Company Information screen. Note! This field has no effect on the Exemptions and Other ...
How does the system calculate the ETI Period Count?
The ETI period lasts for 24 qualifying periods. Refer to the SARS Guide to the Employment Tax Incentive guidelines on what criteria need to be met in order for a period to be considered as an ETI qualifying period. PaySpace tracks the qualifying ...
When should an ETI Take On be completed?
An ETI Take On should always be completed before a company's first live run. Navigate > Payroll Cycle > Payslip Pay Dates > Open Runs
What is the purpose of processing an ETI Take On?
The purpose of processing an ETI Take On is to display ETI data correctly in the CSV Tax File. It is also used to ensure the Note component: ETI Period Count, tracks the qualifying periods correctly. An ETI Take On, can be summarised as follows:
Are companies that operate in a Special Economic Zone able to claim ETI for all qualifying employees, regardless of their age?
Yes. If a company operates in a Special Economic Zone, it will be able to claim ETI for all qualifying employees, regardless of their age. Note! Visit the SARS website for more information on Special Economic Zones. A company SEZ code are captured on ...
If the ETI Minimum Wage Rate per Hour component is configured on company level, will the system automatically initiate the ETI calculation on employee level?
No. If the ETI Minimum Wage Rate per Hour component is configured on company level, but not employee level, the system will not initiate the ETI calculation in the background. Navigate > Employee > Payroll Processing > Recurring Payroll Components > ...
Does the system do a validation check to see if a company qualifies for ETI before checking if employees qualify as well?
Yes. PaySpace does a validation check to see if a company qualifies before checking if employees qualify as well.
How long will the Employment Tax Incentive be in effect?
The Employment Tax Incentive (ETI) came into effect on 1 January 2014 and will end on 28 February 2029.
How do I prevent the system from calculating the Employment Tax Incentive for the company?
To prevent the company from calculating ETI, enable the "does not qualify for employment tax incentive" checkbox, under the Statutory Fields tab on the Basic Company Information screen. Note! This field has no effect on the Exemptions and Other ...
How do I configure the ETI Minimum Wage Rate Per Hour component?
This feature is available on all PaySpace editions The ETI Minimum Wage Rate Per Hour component has to be setup on company level to indicate the minimum wage applicable to the employee as per the national minimum wage or a wage regulating measure. ...