Updated post 2022/03/02
Release 5.8a is now scheduled to be available as from 14 March 2022.
Items included in the update:
- Updates to RSA
- Tax tables for 2022/2023
- Changes related to PSP companies
- ETI changes (Table values & remuneration)
- Malawi Tax year end
- Africa reports
You will need to be on either Release 5.7a or 5.7b to be able to install the update, once available.
Q: I need to pay my employees in my weekly/bi-weekly company, before the new tax tables become available. How will this affect my employees?
A: When the Release 5.8 update will be installed, the system will apply a back-dated average tax calculation for the remuneration for the tax year on the new tax tables.
- The employees will be tax according to the 2021/2022 tax tables, until you install the 5.8a update.
- The tax correction will be applied in the pay period in your company, when you install the update.
- It is important to install your update in a new pay period, due to these recalculations.
Q: Why was the release of the software update delayed from 8 March 2022 to 14 March 2022?
A: The 2022/2023 tax tables were communicated in February during the Budget Speech, and there were changes communicated by Treasury which required impacted on South African payrolls:
- Employment Tax Incentive values (published 25 February 2022) - Increase to the ETI Amounts Effective 1 March 2022
- and Reimbursive Kilometers (published 8 March 2022) - Prescribed rate per km and vehicle lookup table effective 1 March 2022
The changes to ETI impacted on the definition of ETI Remuneration, and was referred to SARS for further interpretation and verification, to ensure the payroll applications apply the changes aligned with the publications. The changes required new features to be developed and tested to allow the changes to be applied correctly.
Original post 2022/02/24:
Release 5.8a is scheduled to be available as from 8 March 2022, which will include the latest tax tables for 2022/2023 tax year for South Africa and tax year changes for Malawi.
More details will be added to this post as it becomes available.
Want the post information updates in real-time?
Read our article: How do I setup real-time email notifications for forum posts on Sage City?