We’re running an Injury on Duty Compensation workshop!

The COIDA Return of Earnings (ROE) filing season deadline fast approaching, we’ve been inundated with calls for assistance with related calculations, claims, submissions and reporting… and so, we are proud to announce that we will run a morning workshop as a once-off skills transfer and information session on 11 May from 8.30am until 1pm.

The workshop will take place at our offices in Rivonia, Johannesburg and Sharon Cloete has agreed to serve as facilitator.

This is a unique opportunity for any HR practitioner, health compliance officer, HR manager, business owner or safety manager – in fact, most professionals who run or are impacted directly by HR compliance and operations – to get better acquainted with ROE and what the law (the Occupational Health and Safety Act) says about accidents and incidents in the workplace.

This session will provide answers to mission-critical questions such as ‘what happens when there is a fatality?’,  ‘what are the legal requirements to complete the WCL2 form?’, ‘what happens once a claim is submitted?’ or ‘when will there be compensation and when not?’…. these are the type of questions we’ll be delving into and answering for you.

Don’t miss this opportunity to be better informed through expert insight into compliance with this significant legislation, what the processes are and how you can better position your business to ensure continuity and responsible operations.

The cost is R850 (incl. VAT) per delegate – a truly worthwhile investment!

We look forward to hosting you

OFFICIAL INTEREST RATE REDUCED

The South African Reserve Bank reduced the repo rate by 25 basis points to 6.50% per annum with effect 29 March 2018. This means that the rate at which the SARB lends to your bank has decreased from 6.75% to 6.50% per annum.

Employers must take note that it affects their official interest rates on payrolls and this decreased to 7.50 %. Please adjust it effective 1 April 2018.

The definition of “official interest rate” in the Seventh schedule of the Income Tax Act means:

  • In the case of a loan which is denominated in the currency of the Republic, the South African repurchase (repo) rate + 100 basis points; or
  • In the case of a loan which is denominated in any other currency, the South African repurchase rate applicable in that currency +100 basis points.

Where a new repurchase rate or equivalent rate is determined, the new interest rate applies for the purposes of this definition from the first day of the month following the date on which that new repurchase rate or equivalent rate comes into operation.

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2018 CRS Technologies (Pty)Ltd. All Rights Reserved.

As South African businesses face the challenge of a new year, it is important for business leaders to realise the implications of two new pieces of legislation: the Taxation Laws Amendment Bill (TLAB) 2017 and the Tax Administration Laws Amendment Bill (TALAB) 2017.

The amendment proposed by this legislation has been published in the Government Gazette 41342 of 18 December 2017 and Government Gazette 41341 of the same date.

This has paved the way for several significant changes to the Taxation Laws Amendment Act 17 of 2017, and it is critical that business leaders take note.

Below is a list of these changes and their potential impact on business.

Limitation of foreign employment income exemption: Tax residents outside of South Africa for more than 183 days as well as for a continuous period of longer than 60 days during a 12-month period rendering employment services, will now only be exempted up to the first R1 million of their employment income earned abroad.

Any foreign employment income earned over and above this amount will be taxed in South Africa, applying the normal tax tables for that particular year of assessment.

Increase of thresholds for exemption of employer provided bursaries to learners with disabilities: The need arises to clarify employer obligations to verify disability status of bursary holders, along with family connection and duty of ‘care and support’.

Transferring retirement fund benefits after reaching normal retirement date: It was requested that the ability to transfer funds after the normal retirement date also be extended to pension and provident funds and to pension preservation and provident preservation funds, as well as retirement annuity funds.

Dividends on employee share incentive schemes: The discussion surrounding the differentiation between an employee share holder and an individual that acquired shares was held. The request was partially accepted. The proposed wording will be changed to delete the proposal that the person by whom the dividend is distributed (a CSDP in the above comment) must deduct or withhold PAYE.

One of the main changes in the Tax Administration Laws Amendment Act 13 of 2017 is: spread of PAYE cap on deductible retirement fund contributions over year (R350 000.00): 

Consultation with the payroll software industry indicated that the application of the cap for PAYE purposes will take on a cumulative basis for the portion of the year of assessment that the employee receives remuneration from an employer.

For example – if an employee is employed by an employer for seven months during 2018/19 tax year a cumulative deduction limitation of R204 166.67 will apply in the seventh month.

There are a lot of decisions to take in and consider and a great deal for business to deal with by way of change to tax legislation.

We recommend consulting with our legislation team at info@crs.co.za for in-depth insight, advice and knowledge.

I am frequently asked what, in my opinion, will be The Next Big Thing in HR, and for years my answer has always been rooted in enabling technology of some variety. Be it the oh-so-poised disruptors, or established and trusted tech that just needed some fine-tuning, today’s HR departments can’t get far without digital ingenuity. But that requires long-term blue sky thinking
too and recognising that tech ingenuity is not a destination but a constant process. It is no coincidence that the CRS suite of tech-driven solutions is under almost continual development. Some of the tweaks are so small our clients aren’t always aware of them, and then some improvements and upgrades are really impressive and definitely worth shouting about. This month, it is the latter. I am delighted (my PR team says I can’t actually use CAPS so italics it is) to announce the first release of our new look CRS software which has been in progress for some months — the first of a roadmap of system advancements. Our long-term development roadmap includes a faster, better looking, more agile and more intuitive HR technology platform. A culmination of knowing what works and what our clients want and need to stay compliant within the local regulatory frameworks. We love it but I would greatly value your honest feedback once you have had a chance to take the new look software for a test drive. Feedback all goes towards fine-tuning other parts of the roadmap and the next phase which has me equally excited to unveil, soon.

I am confident that everyone is in the know about the VAT increase that has just come into effect. We’ve updated everything in the system where needed but with any new regulation comes an adjustment period so I urge you to double check all your invoicing and reporting. Below is an article with some useful information about Sars e-filing changes.

Please note that the WSP and ATR submission deadline is 30 April 2018. To summarise briefly, the Workplace Skills Plan (WSP) documents the skills requirements of a company and describes the range of skills development interventions that the company will use to address these needs during the year. The ATR (Annual Training Report) goes hand in hand with the WSP and must be submitted at the same time, showing your progress against your last WSP and what has / hasn’t been implemented, thereby highlighting the successes and failures, and where more efforts should be focused in the coming year. Companies need to submit records of all education, training and development activities. Overall, this can be a particularly complex and daunting set of reporting but please use CRS’ expertise in this regard and enjoy peace of mind knowing that this has been submitted correctly.

Still on reporting, please note that the COIDA deadline has been extended. The Department of Labour has announced that the 2017 / 2018 submissions will open on 1 April 2018, until 31 May 2018.

Over the years, our clients have always raved about the CRS Annual Tax and Legislation seminar held in each major city / branch but we have been mulling over changing the format of this and presenting it as one webinar in 2018. Similar content and still with live Q&As and other speaker interactions, just delivered to you in the comfort of your own office / surrounds. That said, if you feel strongly that an old-school seminar is the better format, we’ll take that sentiment into consideration. We’ve launched a poll on our Facebook page, so please click here and cast your vote!

Lastly, we have received printed copies of the Tax Guides. Please let us know if you would like copies?

Have a great month
Ian McAlister

South African employers have until April 30 to submit their Workplace Skills Plan (WSP) and Annual Training Report (ATR) to their respective Skills Education Training Authority (SETA).

HR and HCM solutions market leader CRS Technologies explains that employers with a total salary bill of R500 000 plus over a 12 month period are required to pay SDL levies to SARS every month.

SARS distributes these fees to the respective SETAS which in turn get allocated to grants.

CRS Technologies has the resources and expertise to help employers get money back for their investment in employees.

Nicol Myburgh heads up the HR Business Unit at CRS Technologies and says up to 20% of the invested monthly amount can be claimed back from SETAs for all training, including internal training expenditure, to develop employees.

SETAs offer mandatory grants to employers investing in their employee development, and discretionary grants are also granted to develop scares skills.

Myburgh says CRS Technologies is ideally positioned to help companies with the successful submission of their SETA report.

“This is a relatively intense process that requires a meticulous approach to gathering and applying information,” he said.

|”The legislation is extensive and must be carefully considered in being able to compile the workplace skills plan and annual training report. This is where CRS Technologies can help – we help our clients understand the legislation and its impact, and also advise them on the best practice process to compliance.”