STOP filing employee paper records – paymaster offers electronic filing!
Tired of sifting through stacks of paper to find an employee’s records?
Paper records go missing or get misplaced!
Eeek! Can you afford the risk of losing important employee information?
And inefficiencies in your HR department?
Struggling to keep track of leave balances, attendance records, or performance evaluations?
Worried about the security of your paper records?
Lost or stolen documents put sensitive employee information at risk.
With Paymaster’s system, you can keep all your essential and valuable employee-records online (safely and securely stored in the Cloud).
Paymaster’s automated online HR administration system streamlines record-keeping processes – allowing easy access and management of employee information anywhere, anytime!
Read our article to know what records to keep, when and in what format – Employee Record Keeping
Stay compliant and organized…keep all your employee records at your fingertips with Paymaster.
Still printing out paper payslips for your employees?
Noooo….ditch the outdated practice! Paymaster’s electronic payslips are the future!
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You can download payslips from Paymaster
Administrators can automate payslip emailing every month
Imagine managing your payroll from the beach! 😎
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Why should you consider a retirement annuity (RA) to prepare financially for retirement?
They offer:
Tax advantages
a Disciplined way to save enough to invest for growth
In Part 1 of this series we started exploring why Retirement Annuities are an excellent option to prepare you financially for retirement. We continue that here: Part 2…
Some complex details should be considered when investing through a retirement annuity.
6. Your over-contributions will roll over
Your tax-deductible premiums are limited to 27.5% of your taxable income per year (up to a maximum of R350 000).
But you may invest more since over-contributions towards your RA will be rolled over to the following year – where they can be used for tax deduction purposes in that year.
The advantage – these over-contributions will enjoy investment growth (even though the tax benefit will only be gained in the following year).
7. The funds in your RA are not subject to estate duty
Funds invested in an approved retirement fund (such as an RA) are not part of a deceased estate.
So its value is not taken into account when calculating estate duty.
RAs can be used effectively to reduce estate taxes.
8. Use your RA to reinvest your tax refund
Consider reinvesting the tax refunds you receive from Sars.
At the end of the tax year, you’ll need to submit your IT3 certificate to Sars as part of your e-filing, providing proof of the contributions made towards your RA in that tax year.
When you receive your tax refund from Sars, you can invest the money back into your RA as an ad hoc contribution, further boosting your retirement savings.
9. You can stop contributing to your RA – no penalties
A feature of LISP-based RAs is that they are transparent, flexible investments.
They allow investors to completely customise their contributions.
This means that you can choose to contribute monthly, quarterly, bi-annually or annually.
Plus the option of making ad hoc contributions when circumstances allow.
10. Your RA death benefits are distributed in accordance with the Pension Funds Act
The funds held in your RA will be distributed among your financial dependants in the event of your death as per the provisions of the Pension Funds Act.
This Act places a duty on the retirement fund trustees to establish the identity of your financial dependants (at the time of your death) and to allocate the benefits accordingly.
While Retirement Annuities are an excellent, tax-efficient option to save for your dream retirement, Paymaster advises that you consult a registered financial advisor to discuss the best way you can invest and prepare for this season in your life.
*LISP – an administrative platform – registered with FSCA – that packages, distributes and administers a range of investment products. (Linked Investment Service Provider).
To prepare for your retirement, see what other retirees have to share –
In conclusion, Part 2 of our ‘Retirement – Dream or Nightmare!’ series explores critical aspects of Retirement Annuities (RAs). Discover why considering an RA is essential for your financial future. If you haven’t read Part 1, catch up now to make informed decisions about your retirement journey.
Why should you consider a retirement annuity (RA) to prepare financially for retirement?
They offer:
Tax advantages
a Disciplined way to save enough to invest for growth
However, some complex details should be considered when investing through a retirement annuity.
1. You can transfer your insurance RA to a unit trust platform
A traditional, insurance-based RA policy can be transferred to a unit trust platform
Check with your insurer if they charge any cancellation fees for this
The transfer process can take some months to complete
Ask your financial advisor to prepare a cost-benefit analysis to help you make an informed decision about making a transfer. There are no expensive upfront commissions paid to your financial advisor, (as in the case of an insurance RA) – instead, your advisor earns an advice fee -charged per annum -as a percentage of your invested capital.
2. RA vs preservation fund (how to preserve your retirement benefits)
A preservation fund – is one way to save employer-sponsored funds
– when you retire, you stop paying into this fund
– you can make a full or partial withdrawal before age 55
retirement benefits in an RA structure – you can continue to pay into the fund after retirement (regularly or ad hoc).
– An RA will not allow you to access the funds before the age of 55.
3. You can invest in as many RAs as you like
You are permitted to invest up to 27.5% of your taxable income on a tax-deductible basis towards an RA (one or more approved retirement fund)
But there is no tax advantage to having more than one RA
If your RA is invested on a LISP* platform, you can fully diversify your investment (subject to the limitations of the Pension Funds Act), within a single RA
So additional RAs will not mean extra investment diversification
4. RAs are more tax-efficient than TFSAs (Tax-free savings accounts)
RAs and TFSAs – no tax payable on any dividends or interest earned
No capital gains tax consequences
The major difference – your contributions towards an RA are tax-deductible up to 27.5% of taxable income – and your contributions towards a TFSA are made with after-tax money
So consider TFSAs once you’ve maximised your tax-deductible contributions towards an RA
5. The funds in your RA are protected from creditors
Your RA funds are protected from your creditors in the event of insolvency
BUT certain monies can be deducted from your pension fund money, including money owed to SSARS and amounts payable under the Divorce Act and Maintenance Act.
To prepare for your retirement, see what other retirees have to share –
As we conclude Part 1 of ‘Retirement – Dream or Nightmare!’ exploring the intricacies of Retirement Annuities, stay tuned for Part 2 on our website and social media platforms, where we continue unraveling the remaining essential insights to help you craft a secure and prosperous retirement plan.
*LISP – an administrative platform – registered with FSCA – that packages, distributes and administers a range of investment products. (Linked Investment Service Provider).
Missed our in-depth coverage on travel allowances and log books? Here’s a quick recap: Discover what SARS expects regarding travel expenses, why log books matter, and how accurate records keep you on the right side of tax laws!
Travel allowances are paid by employers to employees to cover the costs associated with business-related travel ONLY.
Employees must keep detailed records of their business-related travel expenses
Employers are required to withhold the correct amount of tax based on these records.
SARS suggests the use of log books to ensure accurate tracking of travel expenses.
A log book is used to record details of each trip’s purpose, distance traveled, and associated expenses. (This allows both employees and employers to compute accurate tax calculations. Without a proper log book, SARS may disallow certain expenses, leading to potential tax liabilities. Any discrepancies may cause SARS to reject your claim completely, or conduct an audit into your business).
Stay on the right side of SARS and avoid penalties. Accurate records of business-related travel ensure compliance with tax laws, and avoid potential trouble with SARS.
Employers and employees should stay informed about any changes in regulations to maintain financial integrity.
Full article – travel allowance…what does SARS say?
For an in-depth exploration of travel allowances, including insights into log books, various types of travel allowances, and their taxation, check out the full article here:Travel Allowances-Outdated
Explore the intricacies of travel allowances in our guide, shedding light on essential updates and practices. Staying informed is paramount to navigate these rules without falling prey to outdated practices that could impact your payroll efficiency.
What are Travel Allowances?
SARS oversees the taxation system in South Africa. It sets guidelines and regulations to ensure that individuals and businesses comply with the tax laws of South Africa.
Travel allowances are payments made by employers to employees to cover the costs associated with business-related travel ONLY. These allowances can include expenses such as accommodation, meals, and transportation. However, it’s essential to understand the tax implications of these allowances.
Taxation of Travel Allowances
In South Africa, the taxation of travel allowances is subject to specific rules outlined by SARS ( South African Revenue Services). Employees must keep detailed records of their business-related travel expenses, and employers are required to withhold the correct amount of tax based on these records. This is where log books come into play.
Travel Log Book
A log book is a record that details each trip’s purpose, distance traveled, and associated expenses. This documentation is vital for both employees and employers to ensure accurate tax calculations. Without a proper log book, SARS may disallow certain expenses, leading to potential tax liabilities. So while keeping a log book isn’t required by law specifically, it is the most efficient way to track your travel-related expenses. Any discrepancies may cause SARS to reject your claim completely, or launch an audit into your business.
Fixed and Variable Allowances
Employees need to be aware of the distinction between different types of travel allowances, such as fixed and variable allowances. Fixed allowances are predetermined and fixed amounts, while variable allowances are based on actual expenses incurred. The tax treatment differs between these types, and adherence to the correct guidelines is crucial.
So, navigating travel allowances, tax implications, log books, and SARS regulations requires diligence and attention to detail. Keeping accurate records of business-related travel is essential to ensure compliance with tax laws and avoid potential issues with SARS. Employers and employees alike should stay informed about any changes in regulations to maintain financial integrity and avoid penalties.
Please note: CPS is a 3rd party administrator responsible for processing UIF grant payments.
The Unemployment Insurance Funds (UIF), aims to provide relief to workers when unemployed for specific reasons. You can apply for benefits if you are on maternity leave or if your employer terminates your service. The benefits are only available to you if you have been contributing to the UIF while you worked. You cannot claim if you have resigned, been suspended or absconded from work.
Various factors affect the time it takes for UIF benefits to be paid out:
The Complexity of the Claim
How complex a claim is, and whether all the necessary documents are completed and received, can influence the time it takes for a payout.
Accurate Information
Inaccurate or incomplete information shared in the documents may extend the waiting period. And if further checks are necessary, the process can also take longer.
Why a UIF claim may be rejected
There are many causes behind the rejection of a claim.
Wrong/Inaccurate information
The accuracy of all the submitted documents will be investigated. Any error in them will result in the claim being rejected, and the process starting from scratch.
Impatient Applicants
Hurried applicants applying for UIF must check theirdocuments over and over before submitting them. This should help avoid any errors.
Eligibility
A person must contribute to the fund, must have worked more than 24 hours per month and should also earn the minimum amount set by the UIF administration to be eligible.
So incomplete or inaccurate information on the documents can cause the application process to be delayed and have to be repeated. This all slows down the time it takes for benefits to be processed and paid out.
Error in Details
Therefore, giving correct information (including details of their bank account and certificate of service) according to the requirements set by the UIF, is essential. Otherwise, they would not be paid by the UIF timeously.
Delays
One should wait 3 to 4 weeks after submitting the claim, before expecting a payout. If it takes too long to receive the claim, contact the UIF office for details and reasons for the delay. Delays can be caused either by the applicant or the administration, and may be between a few weeks, and up to a few months.
Verification of Account
After checking all the documents and declaring them complete and accurate, the claim will go through a moderator who will verify your account. After this process, a status is sent to the applicant known as “Paymaster close” which indicates that the application has been approved and payment is on the way. This should be received within days (rather than in weeks or months).
Methods for Quick Approval (to speed up your claim)
Use Current Surname
If someone is married they must provide their new surname (instead of using the previous one). And make sure that your surname reflected in your bank details match your home affairs details to expedite the process. A mismatch will always cause a delay in payment.
Online Applications
Please note, one cannot use both online and manual claims at the same time. Only one method, either online or manual, should be used by the claimant. Online can be done with the help of any smart device, while the manual is a time-consuming method. (So using the online method will lead to quicker approval).
Repetition of Documents
Should the applicant repeatedly send files and documents, they must not forget to send the salary schedule again as well, as this is the most important part of the procedure.
Make Frequent Calls
Applicants should make frequent calls to the department to check the history of their application and ask them if anything is missing, or if more information is needed. This way, your claim remains active, and the administration will keep it top of mind.
Who else benefits from UIF?
Relief to the Dependants of Deceased Contributors
UIF also gives relief to the dependants of deceased contributors. This means that close relatives of the person who died (and was registered with the UIF), are given access to their benefits.
Strict Process to prevent Fraudulent claims
The UIF takes steps to prevent fraudulent claims, which can be another reason for delays in receiving funds by claimants. For this reason, the UIF has introduced the payment verification process before releasing money into the bank accounts of applicants.
FAQ’s
Do foreigners pay UIF in South Africa?
From the employer’s perspective, every foreign employee has 1% deducted from their salary for their UIF contribution.
To benefit from the UIF you have to be a contributor to the fund while you are employed.
When you apply for this benefit, if you are eligible, there are various steps you can take to speed up the process for the payout. The most important is to submit all necessary documents with accurate information.
Please note that Paymaster does not handle UIF cash services; for UIF cash services, please contact Cash Paymaster Services (Pty) Ltd (CPS). Email:Info.uifqueries.co.zaor phone Telephone Number(s): 012 337 1997 (Switchboard), 0800 030 007 (Call Centre).
For all your payroll needs trust Paymaster for accuracy, reliability, and efficiency. Contact us for more information atian@paymaster.co.zaor 082 898 5006.
The office space is an area that management has to be flexible about if they want to attract and retain young, vibrant employees. It’s no good thinking what has worked for many years, is still the way it works today.
Future office spaces are shaped by a delicate balance between flexibility and collaboration. As technology continues to redefine the workplace, the debate between working from the office and working from home continues.
Positive aspects of working from the 2024 office:
• It fosters a sense of community and collaboration.
• Face-to-face interactions facilitate spontaneous idea exchange, team building, and a shared company culture.
• The physical workspace becomes a hub for creativity, innovation, and camaraderie (elements that are challenging to replicate in a remote setting).
• The office vibe drives productivity, especially in a creative arena.
• It’s easier to feel professional when dressed smartly.
• A break from small children at home can refresh and focus an employee.
• An office should offer good coffee and fast internet (not always available at home).
• And home becomes a quiet space, instead of a place of work (and stress).
On the other hand, remote work (made possible by the digital age) also has its merits:
• It offers employees greater flexibility
• Reduces commuting time and costs
• It can provide a better work-life balance
This newfound freedom is especially appealing to millennials, who prioritize experiences and autonomy in their professional lives.
These young workers, accustomed to constant connectivity, have distinct expectations about their workspaces. Such as:
Environments that promote general well-being and mental health.
Flexible layouts with lots of natural light.
Spaces designed for collaboration.
Tech-savvy (such as many USB charging ports for constant connectivity).
Great coffee, and social space to enjoy it.
The future office is likely to be a hybrid model that combines the best of both worlds.
Companies should invest in adaptable, flexible workspaces that can cater to various work styles, and ensure a seamless transition between in-office and remote work. This flexibility empowers employees, by providing them with the autonomy to choose where and how they work most effectively.
So to attract and retain your skilled staff, your company office space should be;
a fusion of physical and digital spaces.
Your company should be able to cater to the diverse needs and expectations of the modern workforce.
Finding the balance between in-person collaboration and remote flexibility will be the key to creating dynamic, engaging work environments that inspire innovation and foster employee satisfaction.
Embrace the future workplace by fostering collaboration and flexibility. Whether working remotely or in a physical office, Hrmaster ensures an environment that meets the needs of the modern employee, promoting engagement and productivity. Experience the difference with Hrmaster’s collaborative and flexible services. Contact Deon Macauley atdeon@paymaster.co.zaor 079 585 0509 to elevate your work environment today.
Now, in part 2, we will focus on how to turn those habits into strengths and improve the overall work culture.
If you or your managers have been guilty of these bad habits, all is not lost.
Fortunately, people are adaptable, and even if there has previously been poor leadership behaviour, it’s easy to change the situation.
✅ Turn Poor communication into strengths
If your communication needs work, consider opening direct lines of communication for your employees. This can be as simple as a forum specifically designed for employee/management interaction. What’s important is that your team sees you making an effort.
Turn Micromanagement into strengths ✅
If you’re micromanaging your employees, step back and start trusting them. Understand that you’re hurting more than helping and allow your employees to prove to you that they can accomplish their designated tasks without constant supervision and intervention.
✅ Turn Lack of responsibility into strengths
If you struggle to take responsibility for your team, consider taking full responsibility for all problems for a certain period. Your team must understand that you’re willing to accept blame and that you will not throw them under the bus.
Turn a hostile working environment into strengths ✅
If you’re fostering a hostile working environment, you should first determine why you thrive in such an environment. Then, after some consultation, consider actionable changes you can make to help combat this hostility. This can be as simple as giving encouraging compliments, regular accolades for your team, and generally being as approachable as possible.
Regardless of which poor leadership quality your company is struggling with, the solution is always doing everything in your power to ensure that you and your team are fighting together, rather than against each other.
As you work towards transforming your leadership approach, delve deeper into key leadership skills like humility by exploring our article ‘Uncovering Humility – A Key Leadership Skill for Success.‘ Discover how embracing humility can contribute to successful leadership and positive team dynamics.
It doesn’t matter what industry you’re part of – bosses who focus on an “us vs. them” separation between managers and employees are destined to fail, because people are not built to thrive in that kind of environment. If productivity matters to you, cultivate a happy, valued workforce.
Ready to enhance your leadership skills and foster a positive work environment? Connect with Ian Hurst at ian@paymaster.co.za or 082 898 5006 to explore personalized solutions for effective leadership development. Empower your team and elevate your leadership journey today.
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The Unemployment Insurance Funds (UIF), aims to provide relief to workers when unemployed for specific reasons. You can apply for benefits if you are on maternity leave or if your employer terminates your service. The benefits are only available to you if you have been contributing to the UIF while you worked. You cannot claim if you have resigned, been suspended or absconded from work.
