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MAY 2020 – SOUTH AFRICA

RETURN OF EARNINGS DEADLINE

It is important that employers note the following:

Further extension of the COIDA Return of Earnings (ROE) submissions deadline 

The Department of Employment and Labour has published a notification on its website informing employers that the deadline for Return of Earnings (ROE) submissions has been extended from 31 May 2020 to 30 June 2020.

Even though no official government gazette was published in this regard, the new deadline has been confirmed by the Payroll Authors Group of South Africa (PAGSA).

Additionally, all employers will be exempted from penalties and interest for late payment of overdue employer assessments for the period 29 April 2020 to 30 September 2020.

Contact our legislation team at info@crs.co.za if you require any additional information.
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RS Technologies (Pty)Ltd. All Rights Reserved.

MAY 2020 – SOUTH AFRICA

COVID-19 REVISED DRAFT TAX BILLS

COVID-19 Revised Draft Tax Bills published for public comment

On 1 May 2020 National Treasury and the South African Revenue Service (SARS) published the revised 2020 Draft Disaster Management Tax Relief Bill and the revised 2020 Draft Disaster Management Tax Relief Administration Bill for public comment.

These draft bills provide the necessary legislative amendments required to implement the additional tax measures aimed at combating the COVID-19 pandemic and take into account public comments received on the initial batch of the draft tax bills published on 1 April 2020. The newly published revised draft bills and explanatory memorandum replace the previous draft bills and explanatory notes.

To see the summary of the proposed tax measures released in a media statement by the Minister of Finance on 23 April 2020, refer to the News Flash of 23 April on our website.

For employers, the most important aspects to take note of in the revised bills are the measurements in respect of the Employment Tax Incentive (ETI):

  • For the months of May, June and July the remuneration gross-up requirement has been removed for all age groups if the hours are less than 160.
  • In the case of the hours being less than 160 in the month, the ETI amount calculated in respect of the normal age groups must still be grossed down, even though the remuneration was not grossed up, while ETI for the two extended age groups is not grossed down. This is applicable to the months of April, May, June and July
  • In all cases, the actual remuneration paid in the month is used to check against the R6,500pm remuneration qualifying threshold and used to calculate the ETI if the employee qualifies
  • For the months of April, May, June and July, the following has been deleted:
    • The default of a minimum wage or R2 000pm if there is no wage regulating measure.
  • For the months of April, May, June and July, the qualifying requirement that the employee’s start date of employment must be on or after 1 October 2013 has been removed. This appears to be applicable to the two extended age groups.
  • The proposed increase of the ETI value from R500 to R750 for all age groups, as published in the draft Bill of 1 April 2020, remains the same. This is applicable to all age groups. It is proposed by National Treasury that the additional R250 not claimed as part of the April payroll run can be claimed during the May payroll run.
    Note: As the effective date of this proposed change is retrospective to 1 April 2020, this poses a risk to employers and payroll supplier services and has been raised as a concern by the Payroll Authors Group of South Africa (PAGSA).
  • SARS will refund the portion of the ETI that exceeds the PAYE liability stated on the EMP201 monthly for the months April to July.

In respect of donations to the Solidarity Fund (only), the current threshold of 5% of the balance of remuneration has been increased to 33.3% for three months or 16.66% for six months. This is applicable to the months April to July.

It should be noted that the revised draft bills were published for public comment (due on 15 May 2020) and cannot be regarded as the final version. Therefore, we recommend that employers get ready for the changes but do not implement them as yet, especially in respect of the ETI.

Written comments can be forwarded to the National Treasury’s tax policy depository at 2020AnnexCProp@treasury.gov.za and Adele Collins at acollins@sars.gov.za by close of business on 15 May 2020.

To view the draft bills and explanatory memorandum, follow the link

 

Contact our legislation team at info@crs.co.za if you require any additional information.
© 2020 C
RS Technologies (Pty)Ltd. All Rights Reserved.

APRIL 2020 – SOUTH AFRICA

COIDA REVISED RETURN OF EARNINGS (W.AS.8) FORM

It is important that employers note the following:

COIDA Return of Earnings (ROE) form revised

A revised return of earnings form (W.As.8) for the year of assessment 1 March 2020 to 28 February 2021 in terms of the Compensation for Occupational Injuries and Diseases Act has been drawn up and published on 24 April 2020 in Government Gazette 43249.

The previous form has been repealed with immediate effect.

As per the new W.As.8 form, the prescribed maximum earnings amount applicable to provisional earnings has been increased from R458 520 per annum to R484 200 per annum, as announced in Government Gazette 43203 of 3 April 2020

Employers are still encouraged to file the return online on the website of the Department of Employment and Labour.

To view the new W.As.8 form, follow the link.

 

Contact our legislation team at info@crs.co.za if you require any additional information.
© 2020 C
RS Technologies (Pty)Ltd. All Rights Reserved.

Temporary Employer and Employee Relief Scheme

Temporary Employer and Employee Relief Scheme

As South Africa, along with the rest of the world, mobilises resources to battle the Coronavirus (COVID-19) pandemic, there is a realisation within the labour market that it is most definitely not ‘business as usual’.

During times of emergency and threat, people look to leaders for guidance and evidence of clear thinking and deliberate, focused action.

And so we see the introduction of measures by the Department of Employment and Labour to try to contain this global healthcare crisis under the Temporary Employer and Employee Relief Scheme (TERS).

Under the scheme, the Unemployment Insurance Fund (UIF) will compensate affected workers through the existing illness and Reduced Work Time benefits.

There is substance to this scheme and employers must take note

This is applicable to all employers who are registered with UIF and make monthly contributions as required by the Contributions Act of 2002.

There is substance to this scheme and employers must take note that in terms of the TERS process, the UIF may fund companies affected by COVID-19 directly in relation to the TERS allowance.

Additionally, the affected company will only be funded if it has complied with the relevant UIF legislation.

Should a company not be compliant, the said company must undertake to pay outstanding contributions and bring its declarations up to date within a stipulated timeframe.

We are here to help

The following applications will be considered: wage subsidy rulings, over and above wage subsidy and training intervention, and turnaround solution intervention.

CRS Technologies is a leader in HCM solutions and all labour-related matters. We are here to help. For more information or to obtain application forms, email infoTERS@labour.gov.za and info@crs.co.za

Employee declaration form

Employer declaration form

SEPTEMBER 2019 – SOUTH AFRICA EMPLOYMENT EQUITY EEA4 FORM

It is important that employers note the following:

Changes to the Employment Equity EEA4 Form

In August 2019 the Department of Employment and Labour repealed the old EEA4 form, as published in the Employment Equity Regulations of 1 August 2014, and replaced it with a new version. The new form became effective on 8 August 2019.

The EEA4 form generally contains the format for reporting income differentials to the Employment Conditions Commission.

The Department of Labour stated that the old form is ineffective. The main purpose of the new form is to enable companies to analyse salary information pertaining to employment equity more diligently and provide reasons for income differentials to reduce the remuneration gap between the highest and lowest paid employees.

Two new sections, section D and E, have been added to the EEA4 form. Section D requires the remuneration of the employee with the highest total remuneration, i.e. fixed/guaranteed and variable remuneration, in terms of race group and gender for all the occupational levels, except the lowest occupational level in a company. Section E requires the average/median remuneration and the remuneration gap.

The new format specifically focuses on the following:

  • Reporting on fixed/guaranteed annualised salaries per occupational level, race and gender.
  • Reporting on variable annualised salaries per occupational level, race and gender.
  • Reporting on average annual pay for the top 10% of an organisation’s workforce.
  • Reporting on average annual pay for the bottom 10% of an organisation’s workforce.
  • Reporting on average annual pay for the middle earners of an organisation’s workforce.
  • Reporting on whether an organisation has a policy in place which addresses and closes the vertical gap between the highest and lowest paid employees.
  • Reporting on whether the remuneration gap between the highest and lowest paid employees in an organisation is aligned with remuneration policy.
  • Indicating whether affirmative action measures to address remuneration gaps are included in the organisation’s Employment Equity Plan.

Employers are required to complete the EEA4 form and submit it with the EEA2 form when they complete their employment equity reports.

The report can be submitted between 1 September 2019 and 15 January 2020.

To view the Government Gazette containing the new form, follow the link, selecting 42627 8-8 Labour under Separate Gazettes.

Contact our legislation team at info@crs.co.za if you require any additional information.
© 2019 C
RS Technologies (Pty)Ltd. All Rights Reserved.

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