The following post explains how to remove the SDL amounts for the Skills Payment Holiday period (May - August 2020) which was introduced as a Covid-19 tax relief measure. This is only required if Release 5.4c was installed in a period after May 2020.

If the update to Release 5.4c was not installed in May 2020, but installed in June or later, year to date corrections must be made to remove the SDL values for May (or any other month within the 4 month SDL payment holiday period).

Follow the steps below in each payroll company in order to clear the Skills contributions:

1. Make a data backup for each payroll company.

2. Confirm that the payroll is on Release 5.4c/+.

3. The changes will have to be completed manually on each employee record. Access the employees Payslip Screen.

4. Click on the HS (History Screen) button.

5. Access the Company Contributions (Co.Contrib) tab to select the month of May (or other month applicable).

6. Remove the Skills value for each period (May to August only). If Release 5.4c was installed in June, then it is likely that there will be no SDL value from June onwards.

7. Complete this process for each employee.

8. Once all employee records have been updated, print the EMP501 report to confirm that there are no SDL amounts for the May to August period. 

Please take note that any History Screen (HS) changes will not reflect on the 12-Month report. Users must use the HS report when completing any reconciliation procedures as the 12-Month report will still reflect the saved SDL values.

   TIP: Should customers require assistance with this process, we recommend that you make contact with your payroll business partner consultant to assist with the process and reconciliations. This correction may also be done just prior to the Interim Reconciliation submission to SARS. Ensure that your consultant is aware of the additional work required so that sufficient time is allocated.

Read the full article here.