The Revised Draft Amendment Bills affecting payroll - published on 1 May 2020 have been analysed by the Sage Business Cloud Payroll team.
The Revised Draft Amendment Bills featured mainly on three changes, these changes include:
- Changes in regards to the Tax Deductible Limits for Donations towards the Solidarity fund
- SDL Contribution Holiday
- ETI Changes
Changes in regards to the Tax Deductible Limits for Donations towards the Solidarity fund:
As per the amended bills it is proposed to increase the limit of the allowable tax deduction in regards to donations towards the Solidarity Fund that will need to be reported against a new IRP5 code, 4055.
A definition linked to this Tax Total will be incorporated into the system, however, the definition will not calculate a limit for the tax deductible deduction - this will be in the hands of the client.
We advise that you reach out to your tax practitioner before the donations are processed to ensure the amounts are within the allowable limits.
SDL Contribution Holiday:
The SDL Contribution Holiday will be incorporated in app via an update.
SDL will calculate R0.00 from 1 May to 31 August automatically via the application.
From 1 September, SDL will calculate as per normal again.
Proposed ETI Changes:
The proposed bill refers to the changes in calculations for ETI effective from the 1st of April 2020.
These changes include the value of the ETI amount to be calculated, as well as changes to the Wage test.
We can advise that the new ETI changes will be incorporated into the system, however, a rollback will be required to backdate the calculation of ETI for the April period (to utilize the increased ETI amounts).
Update information:
The update is tentatively scheduled to be released in the morning of the 28th of May 2020, which means the changes will be live in the morning of the 29th of May 2020.
Please see Sage's COVID-19 Tax Relief Measures Affecting Payroll guide below for more information regarding the changes:
COVID-19_Relief_Measures_Affecting_Payroll_V5.pdf
