Teryl @ Work

The last part of the article on ETI, and we are still waiting for some finalisation, which I will post when I receive it. How does an employer deal with part pay periods? The incentive must be pro-rated to match the calculation of remuneration.  For example, if an employee starts on the 15 th of the month, and earns R2000 in the first month with the company: His remuneration must be grossed up to R4000 per month The ETI on this value calculated (R1000 in the first 12 qualifying months of employment) This results in a R500 ETI for the employer on this employee for this month Does it run for 24 Months from Date of Employment? Confirmation of this is required, but it appears that the Employer may claim for each employee for up to 24 months, even if they are not consecutive (ETI qualifying months, not months of employment) What happens if an employee leaves the organisation? Assuming all other qualifying factors are in place The next employer can start ...

How is the tax incentive calculated? Assuming qualification: Year One : Employee remuneration of : R2 000 or less - 50% of monthly remuneration R2 001 to R4 000 - R1 000 R4 001 to R6 000 is based on a formula Year Two: The incentive is halved : References and Links SA Treasury - Employment Tax Incentive Bill Accsys - Full article

The new Employment Tax Incentive Bill has raised a lot of questions.   While I put out an overview a few weeks ago, there are some queries that keep coming up.   Over the next week, this blog will cover some of them. Large numbers of unemployed are a problem for any country, but when young people leave the education system with a very poor chance of getting a job, their motivation to achieve is impacted from day one. Statistics indicate that 50% of 15 to 25s are unemployed, and 29% of 25 to 34 year olds.   The ETI Bill aims at the 18 to 29 year olds who are believed to be around 30% of the total unemployed which is sitting at approximately 25%. The concept of introducing a subsidy for employers who take on young people is not a new one, but there has been significant resistance.   The draft bill was released in September, and the formal bill was published on November 4 th , 2013.   When is it happening? Treasury has set a “go l...

While there has not been agreement from all parties on the Employment Tax Incentive (ETI) Bill, and the roll out, it was formally published on 4th November, 2013.  With the January go live date, there are still some issues that need to be finalised, but simply put, the concept is as follows: The incentive runs from January 1st, 2014 to December 31st, 2016 The employee must be between 18 and 29 years old on the last day of the relevant month The employee must earn a wage of less than R6 001 per month The incentive can only be claimed in the months when the remuneration is under R6 001  The employee must have been engaged after October 1st, 2013 The employer must be eligible by being  Registered for PAYE In good standing with SARS Not local, provincial or national government Limited to South African citizens and valid asylum seekers, the main driver is for youth employment, however, the incentive also applies to employment in Special Economic Zones (SEZ) ...

Human error is one of the 3 major risks in payroll management.   Some fairly simple processes can help to reduce the risk.   And put them in writing, for easy referral. Setting deadlines that are both realistic and practical is one of the first formal processes that should be in place.  It is crucial to have open discussions with all the role players when setting deadlines, so that everybody understands what the implications of not meeting the deadlines are, as well as being committed to the process.  A key success factor is that the contributors are aware that they need to inform the payroll department timeously if the can't hit a deadline, so that alternative arrangements can be made. It is amazing how many people think that its OK if they miss a deadline once, not being aware that if there are 20 deadline contributors who do that once each year, well, you can do the math.... Standard formats  both reduce risk, and make processing easier. ...

What are the risks in a payroll department?   There are many variations of the three below, but it all comes down to them. Fraud Error Confidentiality Good processes and governance go a long way to preventing all of them, and, of course, the positive effect of getting it right the first time, is so much better than having to constantly correct problems.   Payroll errors have a very negative impact on morale. Fraud    From ghost employees to duplicate bank accounts, payroll fraud is wide ranging and yet we are frequently told that payroll administrators manage the full process from data entry to EFT without anybody else checking the output.   While it is clearly not good governance, it is also quite simply putting temptation on the table. Another concern is that there are many repeat offenders out there, protected by the employer who chooses to not take action, and by the companies who do not insist on full background checks when hiring into such a s...

Face or finger, palm or vein, no matter the method, the rise of biometrics as the preferred method of access and identification, is definitive.   Simply put, it is the use of unique biological features to confirm identity. In many environments, both commercial and private, it is critical to know who is on the premises, and when they arrived and left.   Clocking in and out used to be mainly a "blue collar" requirement, tracking hourly paid workers and easing payroll pressure.   Increasingly, biometric devices are being used in office environments, as well as housing estates, gyms and apartment buildings.  Traditional cards are easily mislaid, but its a bit more challenging to lose your finger or face! However, there is still a significant usage of cards, pin codes and other physical devices, and it is a fact that almost 3% of the population do not have consistently readable fingerprints. In the South African people management space (Human Capital Management/Work...

+Accsys (PTY) Ltd  held our 4th Annual Payroll Diploma Graduation last week, both in Sandton and East London.  Our top graduate is from Port Elizabeth.  Congratulations to her, as well as to all our graduates, nationally. Adult learners face many difficulties and challenges, not least because most are both studying and working full time.   Life long learning was a discussion point in the speeches at the event, as well as in the discussions around the great food.   The feedback was wonderful, and the atmosphere was positive and uplifting. The Graduates! Just as exciting was how many of our graduates were delighted to hear there is a next step and that they can shortly work towards a B. Com Degree at The Da Vinci Institute with Payroll Administration as one of their majors.     As the degree is going to be offered via eLearning too, it opens it up nationally and internationally, As part of our focus on life long learning, in interviews we alw...