sage 300 people release notes 20.2.1 300 people... · iru qr rwkhu sxusrvh 1r dprxqw sdlg e\ ru iru...

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Sage 300 People Release Notes 20.2.1.0

Sage 300 People Page 2 of 29

1.0 Employment Tax Incentive Relief Measures 3 Background 3 Amended ETI Table 4 System Changes 5 ETI Refunds 9

2.0 Temporary Employee/employer Relief Scheme 10 Introduction 10 System Changes 14 Employees Included and Excluded 23 CSV Required Information 24 Payment to Employees 29

Table of Contents


Background

The Ministry of Finance published the draft Disaster Management Tax Relief Bill and the draft Disaster Management Tax Relief Administration Bill on 1 April 2020. These Bills provide for proposed relief measures for employers, including for employment tax incentive.

These changes are effective from 1 April 2020 for a 4-month period until 31 July 2020 and will only apply to employers registered for employees’ tax with SARS on or before 1 March 2020.

For the relief period a qualifying employee will be an employee who;

has a valid South African ID, a valid asylum seeker permit or valid refugee ID,

is 18 to 29 years old on the last day of the calendar month, or

is 30 to 65 years old on the last day of the calendar month (1 April 2020 to 31 July 2020), or

is any age and renders services mainly (more than 50%) within a special economic zone (SEZ) to an employer that carries on trade within a SEZ who is a qualifying company as contemplated in the Income Tax Act under the SEZ regime, or if the employee is employed by an employer that operated in an industry designated by the Minister of Finance,

was employed by the employer or associated institution on or after 1 October 2013,

is not a connected person in relation to the employer,

is not a domestic worker,

earns at least the minimum wage (the higher of the minimum wage as specified by a wage regulating measure or the National Minimum Wage Act, or if none of these are applicable - R2 000 wage for a full month which is 160 employed and remunerated hours), and

earns monthly remuneration of less than R6 500 (i.e. remuneration for a full month, which is 160 employed and remunerated hours must be less than R6 500. If the employee was not employed and remunerated for a full month, the actual remuneration must be grossed-up to 160 hours. Please note that this is remuneration as defined in paragraph 1 of the Fourth Schedule to the Income Tax Act).

1.0 Employment Tax Incentive Relief Measures


The ETI table has also been amended, whereby the ETI calculated for an ordinary qualifying employee may result in an additional R500.00.

Amended ETI Table

Changes in the ETI Table (indicated in red):

Monthly remuneration:

First 12 Months Next 12 months Months exceeding 24 months/30-65 years of age

Apply to:

Qualifying employees aged 18 to 29 years old or who qualify according to the SEZ criteria

Qualifying employees aged 18 to 29 years old or who qualify according to the SEZ criteria

Qualifying employees aged 18 to 29 years old or who qualify according to the SEZ criteria who have already qualified for 24 months, or qualifying employees aged 30 to 65 years old. This column is only valid from 1 April 2020 – 31 July 2020

R0 – R 1999.99 R500 + (50% of monthly remuneration)

R500 + (25% of monthly remuneration)

R500

R2 000 – R4 499.99

R1 500 R1 000

R4 500 – R6 499.99

Formula: R1 500 – (75% x (monthly remuneration – R4 500))

Formula: R1 000 – (50% x (monthly remuneration – R4 500))

Formula: R500 – (25% x (monthly remuneration – R4 500))

Note:

These changes will only be applicable for April 2020 – July 2020. And for employers registered for PAYE before or on 1 March 2020. The normal ETI calculation will automatically be reinstated when rolling into August 2020.


System Changes

The following changes have been made to the Sage 300 People application to incorporate the new amendment bill.

On the Navigation pane:

Expand Company Management

Double-click Company Rule

Double-click A Company Rule

Click on Tax

A new checkbox is added on the Company Rule Detail screen:

Registered for PAYE after 1 March 2020.

By default, this checkbox will not be checked. An employer who is registered for PAYE after 1 March 2020 will not be eligible for the additional ETI relief. In this case, the employer should check this checkbox to ensure that the additional ETI relief is not applied, but the original ETI rules/values and calculations will still apply.

A new ETI Reason has also been added to the Sage 300 People application if an employee qualifies for ETI and has qualified for more than 24 months or is between the ages of 30 – 65 and not linked to a SEZ code.


Note:

It is our interpretation that the amount in the 3rd column (i.e. months exceeding 24 months and or 30-65 years of age) should not be pro-rated if the employee was not employed and remunerated for a full month (160 employed and remunerated hours). The actual remuneration must still be grossed-up to a full month if the employee was not employed and remunerated for a full month to calculate the ETI amount, but the ETI amount must not be pro-rated.

Example:

Scenario 1

Company was registered for PAYE before 1 March 2020

The employee is 25 years old

Employee has already qualified for ETI for more than 24 months

National Minimum Wage Rate R20.76

Employee Rate per Hour R21.00

Wage Test R21.00 is greater than R20.76 therefore the employee passes the

wage test

ETI Remuneration R3 000.00

ETI Remuneration Hours 100.00

ETI Remuneration Total

R3 000.00 / 100 * 160

= R4 800.00

ETI Calculated

=R500 – (25% * (R4 800.00 – R4 500.00))

=R425.00

ETI Total

=R425.00

The ETI Calculated for the 3rd column will not be pro-rated

according to the hours worked


Scenario 2:

Company was registered for PAYE before 1 March 2020


Qualifying Months Brough forward is 17

ETI Actual Wage Calculated R20.76

ETI Wage Hours R21.00


wage test




R3 000.00 / 100 * 160

= R4 800.00

ETI Calculated

=R1 000 – (50% * (R4 800.00 – R4 500.00))

=R850.00

ETI Total

850.00 / 160 * 100

=R531.25


Scenario 3:

Company was registered for PAYE after 1 March 2020


Qualifying Months Brough forward is greater than 17

ETI Actual Wage Calculated R20.76

ETI Wage Hours R21.00


wage test




R3 000.00 / 100 * 160

= R4 800.00

ETI Calculated

=R500 – (25% * (R4 800.00 – R4 500.00))

=R425.00

ETI Total

=R425.00 / 160 * 100

= 265.63

In scenario 3, the company could not qualify for the additional ETI relief because the employer was registered for PAYE after 1 March 2020, and therefore the normal ETI tables apply.


ETI Refunds

SARS will accelerate the payment of employment tax incentive reimbursements from twice a year

to monthly as a means of getting cash into the hands of tax compliant employers.

Note:

‘Reimbursements’ are the ‘ETI Carry Forward’ value on the EMP201.

No changes will be made to the payroll system to accommodate this. This will be an administrative requirement by SARS after the employer has submitted and paid the EMP201 before the deadline.


Note: The DoEL (Department of Employment and Labour) has not provided final clarity on all the fields in the C19-TERS (referred to as TERS) submission file, and therefore this file is subject to change. Explanations are based on our current interpretation and the latest information received from the DoEL.

This export report will give you flexibility with regards to the content that will be exported to your TERS file and will create the TERS file according to the sample provided by DoEL as on 11 April 2020.

It is your responsibility to confirm the correctness of the data to be submitted to the DoEL (Department of Employment and Labour). Ensure all relevant documentation is completed as per the autoreply email from UIF: [email protected]

Introduction

The Minister of Employment and Labour has issued a Directive (as amended by Government Gazette No. 43216) called Covid19 Temporary Employee/Employer Relief Scheme (C19 TERS) effective 26 March 2020. This Directive will remain in operation for a period of 3 months or until it is withdrawn by the Minister, whichever comes first.

During this COVID-19 lockdown period, most companies have shut down/closed (whether total or partial) and for some employers it is not economically possible to continue to pay employees. In this case, the Department of Employment and Labour has created a special benefit under the Unemployment Insurance Fund as per the Directive.

Purpose of the Directive:

To make provision for the payment of benefits to contributors who have lost income due to the Covid-19 pandemic

To minimise economic impact of loss of employment due to the Covid-19 pandemic

To avoid contact with, and the spread of Covid-19

To establish the Temporary Employee/Employer Relief Scheme and set out the application process for benefits

To make provisions of online applications for benefits in order to avoid contact during the national disaster period

2.0 Temporary Employee/employer Relief Scheme


Qualifying employers:

Should an employer as a result of the Covid-19 pandemic close its operations, or part of its operations, for a 3 months or lessor period affected employees shall qualify for Covid-19 benefit

For the company to qualify for TERS, it must satisfy the following requirements:

o the company must be registered with UIF,

o the company must comply with the application procedure for the financial relief scheme, and

o the company’s closure must be directly linked to the Covid-19 pandemic

***‘Temporary lay-off’ means a reduction in work following a temporary closure of business operations, whether total or partial, due to Covid-19 pandemic for the period of the National Disaster.

TERS benefits:

The benefit shall be de-linked from the UIF’s normal benefits and therefore the normal rule (for every 4 days worked, the employee accumulates one day credit and the maximum credit days payable of 365 days for every 4 years) will not apply

The benefits will only pay for the cost of salary for the employees during the temporary closure of the business operations

The salary to be taken into account in calculating the benefits will be capped at a maximum amount of R17 712 per month, per employee and an employee will be paid in terms of the income replacement rate sliding scale (38% - 60%) as provided in the UI Act

Should an employee’s income determine in terms of the income replacement sliding scale fall below R3500, the employee will be paid a replacement income equal to that amount

Qualifying employees will receive a benefit calculated in terms of section 12 and 13 (1) and (2) of the UI Act, provided that an employee shall receive a benefit of no less than R3500

Subject to the amount of the benefit calculated according to the rules above, an employee may only receive Covid-19 benefits in terms of the Directive if the total of the benefit together with any additional payment by the employer in any period is not more than the remuneration that the employee would ordinarily have received for working during that period

All amounts paid by or for the UIF to employers or bargaining council(s) under the terms of the Scheme shall be utilized solely for the purposes of the Scheme and


for no other purpose. No amount paid by or for the UIF to an employer or bargaining council under the terms of the Scheme that is required to be paid, in turn, to an employee will fall into the general assets of the employer or bargaining council, and no bank may refuse to release or administer the transfer of that amount into the bank account of the employee as required by the Scheme, irrespective whether the employer or bargaining council is in breach of its overdraft or similar contractual arrangements with the bank concerned

Agreements with bargaining councils (i.r.o TERS):

An employer whose employees are entitled to receive Covid-19 benefits provided by the UIF during the period of lockdown from the bargaining council may not make an application in terms of the Scheme and the employees of that employer may not receive any payment in terms of the Scheme than through the bargaining council. The above restriction only applies if –

o the parties to the bargaining council have concluded a collective agreement that-

has been extended by the Minister of Employment and Labour in terms of section 32 of the Labour Relations Act, and

provides for the disbursement of funds received from the UIF to provide Covid-19 benefits to employees bound by the collective agreement during the period of lock-down, and

o the bargaining council has concluded a memorandum of agreement with the Fund for the council to disburse covid-19 benefits on behalf of the Fund to –

the employees who fall within the scope of the collective agreement, and

if authorised by the memorandum of agreement, any other employees in a sector identified in the agreement, whether or not they fall within the registered scope of the bargaining council.

Application procedure:

The employers shall apply by reporting their closure to email box [email protected] and there shall be an automatic response outlining the application process

The employer shall be required to furnish the Fund with the following documents:

o Letter of authority of company, on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company


Signed memorandum of agreement from the employer or bargaining council with the UIF, or written or electronic confirmation of acceptance by an employer or bargaining council of the terms and conditions of the scheme provided to the employer or bargaining council or published in writing by the UIF

Other information as specified in the automatic response from the DoEL.

Note:

Please visit Sage City to keep up to date with any new information and changes i.r.o of the TERS CSV file which must be submitted.

For more information regarding TERS, please refer to the Department of Employment and Labour website.

UIF has also developed a hotline for COVID-19 TERS Benefit enquiries during lockdown period: 012 337 1997.

Workers, companies and stakeholders are urged to follow @DeptofLabour and @UIFbenefits on Twitter and visit www.labour.gov.za for regular updates.


System Changes

A new export has been created that will generate the TERS csv file.

On the Navigation pane:

Expand Exports

Double-click TERS UIF Export


Report Fields Field Type Format and Default Explanation

Company Mandatory field Only South African companies will be available in the dropdown selection

Company Rule Mandatory field Once a company rule is selected the company rules with the same UIF registration number will be available to be selected

Date to Submit Report

Mandatory field DD-MMM-YYYY Select the date that the csv file will be submitted

Shutdown From Date

Mandatory field DD-MMM-YYYY

Select the first day of the shutdown period of the employer. In most cases it will be 27-Mar-2020 but if the employer paid employees up until 31 March, then the date will be 01-Apr-2020

The date will be the same for all employees

Shutdown To Date

Mandatory field DD-MMM-YYYY Select the last day of the shotdown period for the employer. The date will be the same for all the employees

Sector Minimum Wage Type

Mandatory field Default to R3500.00 Enter the sector minimum wage

This should be a monthly value



Remuneration Period

Mandatory

Indicate the month in which the employees last received their full remuneration

The dropdown will only have monthly options

Note:

It is our current interpretation that the remuneration to be declared is the remuneration of the last month employees were remunerated in full. This is yet to be confirmed.

Use UIF Remuneration

Checkbox Default = True

The UIF remuneration for the remuneration period selected will export. For non-monthly company rules the MTD+ value of the month selected above will export

If this field is unchecked the Earnings, Company Contributions and Fringe Benefit definitions will become available to select from

Earning Definition

Company Contributions Definitions

Fringe Benefit Definitions

Dropdown

Mandatory if Use UIF Remuneration is not selected

If you choose not to export the UIF Remuneration, then the taxable amounts of the selected definitions will be summed

For non-monthly company rules the MTD+ taxable amounts for the last period of the “Remuneration Period” will be exported



Will the employee receive Leave income during the shutdown period

Checkbox Default = No If the employees will not receive any income during the shutdown period, then this checkbox must be left unchecked


How Will You Calculate Your Leave Income

Dropdown

Mandatory if “Will the Employee Receive Leave Income During the Shutdown Period” = Yes

Same selection as Monthly Remuneration

If this option is selected, then the remuneration type selected for monthly remuneration will be used

E.g. If the user selected Full UIF Remuneration and the Leave Period = April (see the following option) then the UIF remuneration for April will export

If the user selected certain Earnings, Company Contributions and/or Fringe Benefits for the monthly remuneration then the selected Earning, Company Contribution and Fringe Benefits for the Leave Period (see the following option) will export

Note:

This option is not advisable for non-monthly company rules.

Additional Definition

If this option is selected, you will have the ability to select an additional definition where the leave income is calculated with a custom calculation

It will also be mandatory to select a “Leave Period”

Note:

The total returned on the additional definition must be the full value that the employer will pay the employee during the lockdown period.


Report Fields Field Type Format and Default Explanation Apply Factor to Monthly Remuneration

This option will use the value calculated for monthly remuneration and apply a factor to the exported value

E.g.

If the monthly remuneration exported above was R15 000.00 and the user applies a factor of 10% then the value that will export for Leave Income will be R1 500.00

Note:

The value of this field will reduce the benefit calculated bu the Fund.

Leave Period

Dropdown

Only 1 period per company rule may be selected

The period in which the leave income is calculated/captured should be chosen

Preferred Payment Method

Dropdown

Mandatory

Options:

Employee

Employer

Bargaining Council



Bank Name

Dropdown

Mandatory field

This option will only be available if the Preferred Payment Method is Employer or Bargaining Council

Branch Code

Dropdown

Mandatory field

This option will only be available if the Preferred Payment Method is Employer rf Bargaining Council

Account Type

Dropdown

Mandatory field

This option will only be available if the Preferred Payment Method is Employer or Bargaining Council

Options:

Current/Cheque

Savings, and

Transmission

Account Number

Mandatory field This option will only be available if the Preferred Payment Method is Employer or Bargaining Council

Employees to Exclude

Employee Filter The employee search field will be available, the employees selected will be excluded from the TERS csv file


If all the fields are completed the Export CSV button will be available in the ribbon.

When clicking on Export CSV you will be prompted to select a folder in which the file will be saved:


The file name will be UIREEFERENCENUMBER_ddmmmyyyy_uniquesequence.csv. Each time the file exports the sequence number will change to the following number.

A preview will be available where certain information can be verified.


Note:

The Sage 300 People application will not give you a warning if there are any mandatory information outstanding, therefore please ensure that all mandatory fields required are captured.

Employees Included and Excluded

The following employees will be excluded from the report:

Employees with a termination date prior to the Shut Down From Date

Employees with a date engaged later than the Shutdown To Date

Employees linked to the following tax statuses

o Independent Contractor

o Labour Broker

o Personal Service Providers

Employees linked to the following UIF Status

o Legal Entity

You will also be able to exclude employees by using the specific exclusions on the bottom of the report filter screen; therefore, a hierarchy can be setup to indicate who must be specifically excluded.

The selections made on this screen will not override the above-mentioned filters but will add the selected employees to the exclusion list.


CSV Required Information

The file consists of a Header Detail Section and a Footer.

Header:

Heading Compliance required

H Type as is

DATE DD-MMM-YYYY

If the employer submits the report on the 17th of April 2020, then the date should be 17-APR-2020. In this case the Header will then be: H|17-APR-2020

Detail Section:

Heading Compliance / Information required

UIF Reference

Number

This is the UIF registration number of the employer. Will be the same for all employees

Example: 1234560/8

Shutdown From (DD-MMM-YYYY) ONLY

Value completed in the filter section of the export

Shutdown Till (DD-MMM-YYYY) ONLY




Trade Name Trade name of employer

Will be the same for all employees

PAYE Number Company PAYE Number

Contact number Contact number of the employer


Email Address Email address of the employer


ID Number Valid RSA ID number or passport number of the employee

First Name First name of the employee

Last Name Last name of the employee

Remuneration (Monthly)




Employment Start Date The date must be the latest date that the employee started work at the employer

Date format must be DD-MMM-YYYY

Employment End Date

This field will only be completed if the employee was terminated during the shutdown period and will the termination of services date

Date format must be DD-MMM-YYYY

Sector Minimum wage per month – How do we show this per employee?


Leave Income/Remuneration paid during shutdown




Bank Name

If the Preferred Payment Method is Employee, then the employee’s bank name will display

If the Preferred Banking Method is Employer/Bargaining Council, the bank name completed on the filter section of the export will export

Branch Code

If the Preferred Payment Method is Employee, then the employee’s branch code will display

If the Preferred Banking Method is Employer/Bargaining Council, the branch code selected on the filter section of the export will display

Account Type

If the Preferred Payment Method is Employee, then the employee’s account type will display

If the Preferred Banking Method is Employer/Bargaining Council, the account type selected on the filter section of the export will export

Account Number

If the Preferred Payment Method is Employee, then the employee’s account number will display

If the Preferred Banking Method is Employer/Bargaining Council, the account type selected on the filter section of the export will export



Preferred Payment Medium

Type:

1 for Pay to Employee

2 for Pay to Employer

3 for Pay to Bargaining Council (subject to agreement).

Footer:

Heading Compliance / information required

F Type as is.

XX The number of employees in the file. For example, if there are 12 employees in the file, this value will be 12. The entire footer will then be F|12

Note:

Given the uncertainty in the information provided by the DoEL, Sage has made every effort to provide a TERS export file to assist customers with the claim submission process. Some manual intervention or editing of the submission file may be required to cater for unique scenarios. All such changes will be done at the customer’s own risk.


Payment to Employees

The TERS payment made to the employee is exempt from income tax, therefore, not included in remuneration and exuded from PAYE, UIF, SDL etc. If the TERS payment is made to the employer, it must be processed through the payroll to pay the employee. Currently it is unclear which IRP5 code should be used to report this and further clarity must be provided by SARS. Until we get clarification, use IRP5 code 3602.

sage 300 people release notes 20.2.1 300 people... · iru qr rwkhu sxusrvh 1r dprxqw sdlg e\ ru iru...

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