South African Legislation & Taxation
South Africa | How Can I Check Which Employees Have Manual Certificates
The Non-Financial Report can be used to identify employees who possess manual certificates. You can access this report on the Tax Certificate Run screen. Navigation to Report: Reports> Tax Certificate Run> Tax Year End Process On the drop down option ...
Can the UIF Salary Schedule report be generated for multiple employees?
No. The UIF Salary Schedule report is generated per employee. An unpredictable error will be received if an employee number is not specified. Navigate > Reports > Reports > Standard > Legislative
South Africa | Foreign Employment Exemption
The Foreign Employment Tax Exemption applies to South African tax residents working outside South Africa for a period exceeding 60 continuous days and for a period exceeding 183 full days in aggregate, during any 12 months. Previously, there was no ...
South Africa | Why Does The Employee's Entitled Medical Aid Tax Credit Not Equate To The Utilised Medical Aid Tax Credit?
There are instances where an employee's Entitled Medical Aid Tax Credit value is not the same as the Utilised Medical Aid Tax Credit. A Medical Aid Tax Credit is not refundable and cannot exceed the amount of PAYE to be withheld. This would result in ...
South Africa | Does The Medical Aid Personal Component Provide For A Medical Aid Tax Credit?
Yes, if an employee contributes towards a private medical scheme and supplies proof, the employee may receive the medical scheme fees tax credit through the payroll. The Medical Aid Personal component can be used in such scenarios. If not processed ...
South Africa | Why Is The Foreign Subsistence Allowance Taxable Component Not Impacting The Tax Paid Value?
Tax code 3715 will only be taxable upon individual assessment and therefore would not impact Tax Paid on PaySpace. This is due to the relevant documentation which is required to be submitted by the taxpayer to SARS on assessment, so that SARS may ...
What is the impact of exceeding the tax directive limit per employment record?
With the SARS BRS specification limiting any tax certificate to having a maximum of 5 Directives, the system has a automatic logic which will limit a user from adding any further Directives once the maximum limit has been reached. The impact of the ...
South Africa: How do I add a second vehicle on an employee's company car component?
Go to the recurring screen > Select existing Company Car component under Fringe Benefits. Add an end date to the current company car to stop the fringe benefit calculating. You can add this on the Extra fields selection. Once you have added the end ...
South Africa: How do I regenerate the UIF Declaration File?
The UIF Declaration File for the required period can be regenerated by clicking on the "Regenerate File" link on the Classic Reports screen. This will automatically resend it to the Department of Labour. Navigate > Reports > Reports > Reports ...
Does PaySpace have their own Tax Calculator tool?
The PaySpace Tax Calculator can assist you in calculating your monthly tax payments based on your salary or income. Our tax calculator is the perfect tool for calculating your monthly tax payments based on your salary or income. With its intuitive ...
How are the "Personal Service Company" & "Personal Service Trust" tax statuses taxed?
The "Personal Service Company" & "Personal Service Trust" options become available in the Tax Status field when the employee is linked to the nature of person code: "H - Personal Service Provider". Navigate > Employee > Basic Information > Tax ...
South Africa: How do I exclude employees from contributing to the UIF?
All South African companies can be set to be exempted from contributing to the Unemployment Insurance Fund (UIF) for various reasons as set out by Government Gazette. Companies can be exempt from contributing to the UIF for the following reasons: ...
South Africa: How do I exclude a company and its employees from contributing to the SDL?
This feature is available on all PaySpace editions South African companies can be set to be exempt from contributing to the Skills Development Levy (SDL) for various reasons. Companies can be exempt from contributing to the SDL for the following ...
How do I process an tax directive as an employee's tax status?
If a tax directive has been issued for an employee, it needs to be processed on their Tax Profile screen in order for the directive to apply to each payslip within the year (designated period). Navigate > Employee > Basic Information > Tax Profile
What is the Unemployment Insurance Fund (UIF) threshold?
The UIF Threshold, effective from 1 June 2021, is R 17,712.00 per month and R 212,544.00 annually and the amount due by the employer to the Department of Labour is a total of 2% ( Employer UIF contribution of 1% and an Employee UIF Contribution of ...
Why would tax calculate on an employee whose salary is below the tax bracket?
The tax (PAYE) would calculate on an employee's payslip whose earnings are below the tax bracket if their Periods Worked is incorrect. Navigate > Employee > Payroll Processing > Edit Payslip Check the value next to "Divide by Periods Worked" - if ...
How do I configure the system to process a voluntary tax over deduction?
Use the following steps when an employee submits a request in writing for Additional Tax to be deducted from their payslip. Step 1: Enable the "Voluntary Over Deduction:" checkbox. Navigate > Employee > Basic Information > Tax Profile > Statutory ...
How is the deductible pension/provident amount for tax calculation purposes calculated?
The Deductible portion of the Pension/Retirement Annuity is calculated according to the below conditions as specified by SARS: What is the impact of Section 11k on me as a taxpayer. The contributions towards a pension or provident fund us deductible ...
How is the Skills Development Levy (SDL) calculated?
The Skills Development Levy (SDL) is calculated on the balance of remuneration as defined in the fourth schedule to the Income Tax Act. The following elements are excluded from the SDL balance of remuneration: Pensions, superannuation allowances or ...
Where can I download the UI-19 report for a terminated employee?
A terminated employee's UI-19 can be downloaded under the Legislative report category on the Standard (Classic) tab on the Reports screen. Navigate > Reports > Reports > Standard (Classic) > Legislative
Which report can be extracted that contains employee IRP5 certificates and lumpsum certificates?
The IRP5 / Lump Sum Certificates Report can be extracted that contains employee IRP5 certificates and lumpsum certificates (for all employees in the company). Navigate > Reports > Reports > Standard (Classic) > Legislative Note! The report can be ...
Where can I download the EMP501 ETI Breakdown report?
The EMP501 ETI Breakdown report can be downloaded under the Legislative report category on the Standard (Classic) tab on the Reports screen Navigate > Reports > Reports > Standard (Classic) > Legislative
How do I resolve UIF Error: "UIWK" 8320 - The following UIF Contribution amount is invalid"?
"UIWK" 8320 - The following UIF Contribution amount is invalid" error will be sent by the Department of Labour if the employee's Total UIF Contribution is not 2% of their remuneration subject to UIF. To correct the error, navigate to the employee's ...
How many tax directives are allowed to be added per IRP5/IT3(a) certificate (employee record)?
As per the SARS Business Requirement(BRS), a maximum of five tax directives per certificate is allowed. If there are more than five tax directives applicable to an employee, then the directives need to be split between the tax records so that no ...
What is the function of the "Par 11A(5) Fourth Schedule notification - no PAYE" checkbox on the Tax Profile screen?
Enable the "Par 11A(5) Fourth Schedule notification - no PAYE" checkbox, on the Tax Profile screen, if the employer is unable to withhold employees’ tax from section 8A, 8B and 8C shares due to no or too little cash remuneration (in this case, the ...
What is the function of the "Annuitant with multiple income sources Par 2(2B)" checkbox on the Tax Profile screen?
Enable the "Annuitant with multiple income sources Par 2(2B)" checkbox on the Tax Profile screen, when pensioners have multiple income sources. It will result in the following: Code 3220 (Fixed Rate Taxation Indicator) in the Tax File will be set as ...
How are the Long Service Award components taxed?
The first R5 000 of a qualifying long service award is exempt from tax. Any value exceeding R5 000 is included in remuneration and subject to PAYE, UIF and SDL. The R5 000 limit is a combined limit for all types of awards, which can only include: ...
How is the Unemployment Insurance Fund (UIF) exemption reason configured?
The Unemployment Insurance Fund (UIF) exemption reason is configured on employee level on the Exemptions and Other section of their Basic Profile screen. Navigate > Employee > Basic Information > Basic Profile > Exemptions and Other Important! This ...
How do I change an employee's tax status during the tax year?
There is no restriction on the amount of tax records for one employee per tax year. Changing a tax status during the tax year, will result in the employee being taxed on year to date earnings based on the new tax status. Therefore, should an ...
How do I configure the UIF exemption reason for commission earners?
As per legislation, UIF is not deducted for commission earners. This applies to employees whose earnings are made up 100% of commission only. The Unemployment Insurance Fund (UIF) exemption reason: "Employee earns commission only" is configured on ...
How do I configure and generate the Statistics SA report?
This report contains the information required by Statistics SA which is submitted quarterly. Important! In order for this report to produce correct and accurate figures please ensure that you have configured the parameters on the Statistics SA ...
How do I configure the SDL exemption reason for learners?
According to section 18(3) of the Skills Development Act, learners are exempt from contributing SDL. The Skills Development Levy (SDL) exemption reason: "Learner /Excluded from Skills Levy" is configured on employee level on the Exemptions and Other ...
How do I reroute the UIF Declaration File instead of the system automatically submitting it to the Department of Labour?
If a company does not want PaySpace to submit its UIF declaration file to the Department of Labour, enable the "Send UIF declaration file to UIF email address captured on the basic company information screen instead of Department of Labour" checkbox ...
On which screen can a company's UIF email address be updated?
A company's UIF (Unemployment Insurance Fund) email address can be updated on the Statutory Fields tab on the Basic Company Information screen. Navigate > Configuration > Basic Settings > Company Settings > Basic Company Information > Statutory ...
Why are some of the company's UIF Declaration files not visible on the UIF Declarations screen?
Contact support@payspace.com to initiate an investigation into this system behaviour. Take note that upon further investigation, this may be a billable exercise.
Why is there a difference between the EMP201 generated in the month in which it was paid and the EMP201 generated for the same month now?
Possible reasons for the differences between the two EMP201s may include the following: If there is a "DRAFT" watermark on the original EMP201, it means that payment was made while the run was open and the EMP201 was not finalised. EMP201 payments ...
Why is the UI-19 report for a terminated employee returning blank when generated?
If a termination is processed in the run after the employee has resigned, and no payslip was recorded, the UI-19 will pull through blank as the UI-19 report displays actual remuneration as reflected on the employee’s last payslip received on the ...
If a company has been onboarded onto PaySpace from the current period, how can I backdate the Skills Development Levy contribution?
The Skills Development Levy has been configured to only calculate from the month that a company has registered for SDL with SARS. Therefore, no backing is required. The calculation will use year to date figures if they have been captured on the Take ...
What is the function of the "Voluntary over deduction" checkbox on the Tax Profile screen?
Should an employee submit a request in writing for Additional Tax to be deducted from their payslip, enable the "Voluntary Over Deduction:" field on their Tax Profile screen. Navigate > Employee > Basic Information > Tax Profile > Statutory Fields
Are Business Partner and company level users able to edit statutory components?
No. Business Partner and company level users cannot edit and update statutory components/payments because they are automatically updated on the system on Bureau level, based on Government Gazette releases.
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