South African employers need to be aware of specific changes to regulation that will impact their operations, including payroll administration.
As the vanguard of Human Capital Management (HCM) and HR growth within the corporate space, CRS Technologies believes it’s important for businesses to be aware of recent developments regarding the Return of Earnings (ROE) and the official interest rate.
The critical thing for companies to be aware of is the announcement made by the Department of Labour that the 2015/2016 Return of Earnings (ROE) deadline has been extended until 31 May 2016.
The South African Reserve Bank increased the repo rate by 25 basis points to 7.00 % per annum with effect 18 March 2016. This means that the rate at which the SARB lends to your bank has risen from 6.75 % to 7.00%.
Employers must take note that it affects their official interest rates on payrolls and this increases to 8.00 %. Please adjust it effective 1 April 2016.
We want to emphasise that CRS Technologies has a fulltime employment legislation team available to our clients – and this team comprises of experts who can guide payroll and financial directors to navigate their way through these changes and ensure their businesses are compliant.