Please refer to the following document for a detailed explanation on the changes:
COVID-19_Relief_Measures_Affecting_Payroll_V5 (1).pdf
Here are some quick topics on what you can expect on Sage Business Cloud Payroll.
COVID-19_Relief_Measures_Affecting_Payroll_V5 (1).pdf
Here are some quick topics on what you can expect on Sage Business Cloud Payroll.
TERS Pay Out Earning Definition
- Customers will be able to add a ‘TERS Pay Out’-earning definition to their payslip template to process related pay outs on.
- The definition does not have an IRP5 code linked to it as yet. As soon as we have the latest and confirmed BRS document, we will add the relevant code to this already existing definition.
Solidarity Response Fund Donations
- Customers will have a ‘Solidarity Response Fund Donation’-deduction definition to their disposal that is linked to IRP5 code 4055.
- The full amount that is processed on this definition will be tax deductible. The customer is responsible to specify this amount.
SDL Payment Holiday
- Month-to-date recalculation\refund for non-monthly cycles for the payroll month of May 2020.
- If you are in June 2020 already, we advise a roll back to May, the system will activate a recalculation to have the refund applied.
- Employees terminated in May 2020 will also recalculate.
- The SDL payment holiday will last until the end of the August 2020 payroll month.
Employment Tax Incentive (ETI)
- If you are still in the April 2020 payroll month, a recalculation will be activated automatically and you will have to check and restate their EMP201 where necessary. Please refer to the above mentioned document for more information on how to handle your EMP201 statements.
- From May 2020 to July 2020, an employee must have a prescribed minimum wage or national minimum wage specified in order to qualify (given all the other qualifying criteria is met). If no selection is made, no ETI will calculate. We at Sage, unfortunately can not advise you which one to make use of, or what the wage amounts are for your industry. Please reach out to your tax practitioner/Labour Broker/Department of Labour/SARS for advise on which one you need to use and what the amount is for your industry.
- From May 2020 to July 2020, no gross-up of remuneration will be applied.
- If you are in a June 2020 payroll month already there might be differences in the amounts processed for May, a roll back to the May payroll month can be done, if desired. A recalculation will actvate to increased the COVID-19 ETI reliefs applied. The same applies for April 2020 if desired.
- The qualifying criteria for companies registered before or on 1 March 2020 has changed to before or on 25 March 2020, therefor, customers will receive the confirmation modal again.