Tag Archive: Philip Meyer


The Employment Tax Incentive (ETI) initiative devised by the Minister of Finance as part of the Wage Subsidy proposed in 2010, is being promulgated and will become effective from 1 January 2014.

Developed with the objective of increasing employment for young people aged 18 to 29 years, the legislation will allow employers to claim a rebate on their PAYE liability provided their PAYE accounts with SARS are up to date.

Philip Meyer, technology director of payroll and HR software specialist Sage Pastel Payroll & HR says the ETI claim will be based on the remuneration of employees aged between 18 and 29 who were appointed on 1 October 2013 or later nd have a legitimate SA ID number or asylum seekers permit.

The calculation of the ETI claim may only be applied to a monthly salary or wage that is in line with the specific industry’s prescribed minimum wage rates.

“If the industry has no formal set minimum wage, then the qualifying employee needs to earn a minimum of R2 000 a month to be considered for the rebate calculation.

The incentive is calculated at a higher rate for the first 12 months after an employee qualifies. The maximum amount companies may claim per employee is R1 000 for each of the first 12 months,” said Meyer.

During the second 12 month period, the maximum claim is halved to R500 per month.

“However, an ETI claim based on remuneration exceeding R6 000 a month will have a zero incentive value.”

The first phase of the Employment Tax Incentive initiative will require employers to submit their first claims with their January PAYE return which is due on 7 February 2014.

To simplify the requirements and calculate an accurate claim, employers should approach the legislation as a 4 step process:

• The first step is to determine whether the employer is eligible to claim the incentive for the current month.
• Secondly, determine which employees qualify to be included in the claim.
• Step three is to calculate the amount to be claimed against PAYE for the month.
• The final step is to submit the ETI claim as part of the monthly PAYE return.

The amount of administration that is required for substantiating an ETI claim will place an additional burden on payroll administrators as SARS will require more detailed information if they decide to query your calculations prior to allowing your claim. It therefore makes sense to make use of automated solutions to apply the correct calculations and generate the required reports in the format SARS prescribes.

Employers must make use of the opportunity to benefit from the Employment Tax Incentive as the legislation is set to expire on 31 December 2016.”

For the latest legislative news, connect with Sage Pastel Payroll & HR on Twitter (Payroll News), Facebook or LinkedIn. To read more about the Employment Tax Incentive Bill Seminar, click here.

Spokesperson at the Sage Pastal Payroll Press Launch

Philip Meyer- Sage Pastel Payroll & HR

We live in an era where most individuals, everyday use their smartphone to call, sms, WhatsApp, Facebook you name it.

Many experts in the industry believe that global mobile internet usage is projected to overtake desktop by 2014, meaning that globally individuals will access the internet from their smartphone more than using their desktop.

Philip Meyer, technology director at Sage Pastel Payroll & HR says that the importance of applying mobile technology cannot be overestimated.

According to a South African Network Society project done at the University of the Witwatersrand in 2012, over seven out of ten Internet users use their mobile phones to go online and more people have Internet capable phones than own computers.

“Seeing that more people in South Africa have Internet access from their smartphones and other mobile devices, we first developed an Android application because it is highly popular globally and was clearly the most logical deployment,” says Meyer.

Sage Pastel Payroll & HR developed a hosted, web-based tool enabling employees to manage and maintain their own information online called Self Service.

Self Service enables employees to make applications for leave, salary advances, loans, bursaries or other financial assistance, online, no matter where they are in the world as long as they have an internet connection. Employees can view their previous months’ payslips (Self Service online only), update personal information, submit their travel claims and more.

Due to mobility taking over globally, Sage Pastel Payroll & HR kept up with the technology change by taking the Self Service functionality and making it a mobile application. The application enables employees to apply for leave, submit travel claims and update their personal details online or via their smartphone, anywhere, anytime.

For Payroll Administrators and Business Owners, there is no manual capturing of the employees’ request forms. Once approved on the smartpone, the desktop payroll software is updated automatically.

“The application is unique in that it is the first mobile payroll application developed by a South African company enabling employees to apply for leave, submit travel claims and update personal details anywhere at anytime.”

According to Duncan Alfreds from News24, an international survey by research firm Gartner has revealed that Google’s mobile operating system overtook Microsoft’s Windows as the most common operating system in 2012. Android will soon become the most globally dominant operating system, research has revealed. Gartner adds, “As mobile becomes the growing segment in consumer devices, we see the installed base of devices growing but also a shift toward Android.” (Source – News24, April 2013)

Meyer says the mobile application is available in a mobi site environment and applications for iPhone and Blackberry smartphones and Windows Mobile are now being developed.

“The mobile application eases the pressure on HR departments, allowing them more time to concentrate on important areas such as staff wellness, efficiency and training instead of wasting hours on capturing leave forms, dealing with HR data-related queries or distributing payslips. It also makes services more accessible to sales and services employees who are frequently out of the office visiting clients,” concludes Meyer.

For the latest legislative news, connect with Sage Pastel Payroll & HR on Twitter (Payroll News), Facebook or LinkedIn.

Companies have until 15 January 2013 to compile and electronically submit their annual employment equity returns to the Department of Labour. The deadline for manual reports has already passed.

The easiest and most efficient way for companies to complete the forms is to visit the Department of Labour’s website (www.labour.gov.za) and make use of the Online Services to capture EE reports.

Philip Meyer, technology director at payroll and HR specialist Pastel Payroll, part of the Softline Group and Sage Group plc, says companies should be aware that once submitted, the forms may not be changed or amended in any way. “However guidance on how to correctly complete the forms is available from the Department of Labour’s website.”

Meyer adds that companies need to have a formal employment equity plan in place which provides the base for any EE report and consultation should take place with all relevant stakeholders before the forms are completed. The prescribed reporting forms are the EEA2 and the EEA4. Large employers are obliged to report every 12 months and small employers every second year. Chief executives are required to approve and authorise the EE reports before they are submitted.

“Companies should also note that the EEA2 and EEA4 forms must always be submitted together or the submission will be rejected and returned. Copies of these forms should be retained for the company records and to present to Department of Labour inspectors who may visit the company.”

The report also requires tables relating to numerical goals and targets, which essentially provide the workforce profile that the employer aims to achieve by the end of the next reporting period.