HRTorQue Outsourcing

HRTorQue Reporter
March 2014

 
HRTorQue Reporter Archive

Table of Contents

1. Protection of Personal Information Act (POPI)
2. People Management - Who said it was easy?
3. Desertion / Absconding From Duty - What is the difference?
4. Medical Tax Credits
5. More Changes to the Medical Tax Credit System
6. Improvements to eTorQue During 2013
7. Contact the HRTorQue Team

1. Protection of Personal Information Act (POPI)

Author: Melany Bydawell

HRTorQue, together with MacGregor Erasmus Attorneys, will shortly be inviting clients to attend an information session.


There will be instances when the Employee, when performing his or her services in terms of their Employment Contract, will be required to obtain and access personal information of clients and/or policy holders, and other members of staff of the Employer. The Employee is responsible for making sure that this information is processed and utilised in compliance of the rules and requirements of POPI.

In order to ensure that both the Employer and the Employee meet their obligations in terms of POPI, organisations should pay close attention to providing suitable training and materials to the Employee, and to ensure that he or she agrees and acknowledges that they have read and understood the training and the materials.

2. People Management - Who said it was easy?

Author: Melany Bydawell
A recent survey, conducted in a South African company, revealed 46% of the employees had no idea what their job description/profile is.

On a daily basis, employers relate their frustrations as to how difficult, frustrating and challenging it is to manage their employees due to poor performance, consistent absenteeism (including sick leave), mediocrity, misconduct and bad attitudes and behaviour.

One of the key words here is 'management' and good people managers are rare. Managers are often selected based on the fact that they are, or have been, the 'best worker', rather than on assessment of the person's ability and suitability to perform in a completely different and challenging role. The best 'worker' does not necessarily translate into the person becoming the 'best manager' and the skills and profile required for this transition may not be inherent.

We are constantly posed with questions such as:
•  Why do I have to micro manage my employees?
•  How do I get my employees to show initiative?
•  Why don't people just get on with the job?
•  How do I get my staff to take responsibility for their positions and perform competently?

What a freeing thought that this would or could just happen naturally.

There is not a one fit or solution for all where it comes to dealing with these challenges but here are some thought provoking comments to assist you in an effort to find solutions:

1.    Have you got objective Job Profiles in place? This is not a 'list of duties' but clearly established Key Performance areas with deliverables, standards and measurements.
2. Appraisal systems must be simple and objective and with no room for subjective debate. Measurements such as 'fair', 'good', 'very good' or 1-5 ratings with the equivalent descriptions will only result in unfair determination of reward and lack of buy in from employees.
3. Discussion within appraisals on, for example, attitude and leadership are important aspects of the appraisal meeting to identify coaching and other needs but these factors should be separate and not form part of the body of the objective KPAs.
4. Management should be adequately trained and up skilled to deal with objectives and deliverables on a day to day basis. This ensures among other things that the appraisal meeting and content is a reflection of ongoing performance management. There should be no surprises.
5. Addressing 'attitudes' in isolation as opposed to describing the behaviour and or incident will lead to direct conflict and not achieve the desired corrective active.
6. Do you have a 'Pay for performance' philosophy in your organisation where contribution results in reward and vice versa (employees are objectively and fairly rewarded for their input and output)?
7. Do you meet regularly with your staff and especially new employees and take the time to educate them on your contracts of employment, policies and the common law and other requirements from an employer and employee perspective?
8. Do you perform Personality and Job match assessments to ensure that candidates are suitable for the Management or other position?

Putting in place policies, procedures and systems are the easy part. The biggest challenge is in the 'doing' and having those conversations on an ongoing and objective basis with your employees. This includes clarifying expectations, ensuring consistency throughout your management structure, holding employees accountable when they do not deliver and or their behaviour is not appropriate.

And of course, most importantly, leading by example!

3. Desertion / Absconding From Duty - What is the difference?

Author: Melany Bydawell
What is Desertion?
Desertion is when an employee is absent from work without authority and does not make contact with the employer to advise the reasons for the absence and likely return to duty.

What should you consider before you can consider an employee's absence to be desertion?
1.    Whether or not the absence has been unauthorised.
2. The employee has failed to make contact with the employer to explain the reasons for the absence and the employee has made attempts and failed to contact the employee.
3. The employer's disciplinary code and procedure.
4. You are aware that the employee's intention is never to return to work (eg: The employee has found another position elsewhere or he/she does not respond to contact by the employer.)

A process must be followed and a hearing must be scheduled prior to termination of services. This can be done in absentia if the employee fails to present himself/herself at the hearing.

4. Medical Tax Credits

Author: Karen van den Bergh
During the past two years the Medical Tax Credit system has only applied to those individuals who are under the age of 65.

As from March 2014, these individuals will also now be subject to the same system. HRTorQue payroll clients will have their payroll systems adjusted automatically. Clients who do not process payroll with HRTorQue are reminded to check that their payroll systems are adjusted accordingly. Contact [email protected] for additional information.

5. More Changes to the Medical Tax Credit System

Author: David Beattie
Over a two year period we have seen the tax treatment of medical aid contributions and expenses change from a deduction to a tax credit system. The medical tax credit system allows all taxpayers the same Rand benefit, whereas a medical tax deduction is more beneficial to a taxpayer with a marginal tax rate of 40% than one who only pays 18%.

The disadvantage of the tax credit system however is that if an individual's tax liability in a given tax year is not sufficient to utilise all the tax credits available, the benefit will be forfeited (and not be carried over to the next year).

While the deductions for medical aid contributions have already been replaced with a medical credit system for most taxpayer categories, deductions for qualifying medical expenses will also be replaced with a credit system from 1 March 2014. While the credit system has been in use for taxpayers younger than 65 and taxpayers younger than 65 with a disability or a disabled dependent, it will be applicable to all taxpayers - including taxpayers 65 and older who contribute to a medical fund from 1 March 2014.

So what changes?
Until the end of the 2014 tax year (the tax year ending 28 February 2014) taxpayers are entitled to a deduction for qualifying medical expenses (other than medical fund contributions) not recovered from the medical scheme. The deduction is determined using a specific formula in the Income Tax Act.

From 1 March 2014 this deduction will also be replaced by a credit, which will be more favourable to taxpayers who are 65 years and older and taxpayers below age 65 years who are disabled or who have a dependent with a disability.

For taxpayers younger than 65 years the credit for medical expenses will be determined as follows:
The medical tax credit for 12 months (with regards to medical aid contributions) will be multiplied by four and subtracted from the total medical aid contributions for the year. The qualifying medical expenses the taxpayer incurred during the year that exceeds 7.5% of the taxable income will be added to this amount. This total will be multiplied by 25% to arrive at the tax credit for medical expenses.

The credit for medical expenses applicable to taxpayers 65 years and older, or younger than 65 but with a disability or a disabled dependent will be determined as follows:
The medical tax credit for 12 months will be multiplied by three and subtracted from the total medical aid contributions for the year. All qualifying medical expenses will be added to this amount. This total will be multiplied by 33.3% to arrive at the medical expenses credit.

For these calculations it is important for taxpayers to understand what constitutes 'qualifying medical expenses'. These are defined in Section 18(1)(b) of the Income Tax Act as:
1.    Medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopaedist for professional services rendered or medicines supplied; or
2. Nursing home or hospital or any duly registered or enrolled nurse, midwife or nursing assistant (or to any nursing agency for the services of such nurse, midwife or nursing assistant), for illness or confinement; or
3. Pharmacist for medicines as prescribed by any person referred to in (1).

These expenses will be taken into account in determining the medical allowance, provided these expenses have been paid for the benefit of the taxpayer, his or her spouse, his or her children or the children of his or her spouse or any of his or her "dependants" as defined in section 18(4A).

6. Improvements to eTorQue During 2013

Author: Karen van den Bergh
There have been so many new functions and features added to the eTorQue online integrated payroll and HR product during this year that it is impossible to mention them all in this newsletter. The following highlights some of the items that we feel are worth emphasising:

Performance Management
A complete revamp of this facility was done and it now includes the following:
•  Re-usable Parameters and Options are setup within HRM, this includes:
    -  KPAs, KPIs MOs
    -  Calculations
    -  Ratings, Performance Calculations, Weightings
    -  Rater Types
    -  Free Format Appraisal Questions etc.
•  Performance Templates are setup using the above components.
•  Performance Appraisal Templates are linked directly Employees or indirectly by linking the Template to
    Job Descriptions.
•  360° Performance Assessments can be done via ESS/MSS (employee self service and Managers self
    service) and HRA.
•  Performance Surveys are catered for.
•  Performance Appraisal Reporting and Statistics.

Employee Self Service and Mobile
This module also saw a makeover and now includes a number of usability enhancements as well as useful Dashboard information specifically for Managers i.e.:
•  MSS Users can be determined/setup by either the 'Position' structure or the 'ENP' structure.

New Look and Feel
As well as various visual and navigational enhancements e.g. Quick Navigate allows the Manager to link directly to the required Employee and screen from this option.
•   Includes a facility to send email messages to colleagues from the ESS / MSS Module.
Leave Calendar allows filtering of Employees by Cost Centre, Department, Division, Pay Point, Job Grade and Job Title as well as other usability enhancements.
Managers can now view a mass summary of all employees' Non-Financial Data.
Quick Authorisation can be done for both Email Requests and Workflow Authorisation Requests.
The following HR Statistical Dashboard Management Information is available on the Main Menu:
  -  Overview of 'Important Dates' such as Leave Start and End Dates, Anniversary Dates etc.
-  Graphically represented headcount information
-  Summary of Leave Balances for Annual Leave, as well as 'Days Taken' for 'Annual, Sick and Other' leave.
-  Payslips & Tax Certificates Screen includes graphs for both an Income / Package Breakdown and a
    Tax, Nett Pay & Deduction Breakdown

Statutory
In terms of Statutory changes, Monthly PAYE Return Mapping has been included for another five African Tax Authorities and the 'big number' conversion to cater for some African currencies has also been done.

In addition, we will deliver the necessary ETI functionality in January 2014 i.e. in accordance with the SARS requirements available at the time.

7. Contact the HRTorQue Team

Head Office (Durban)
 
Phone: 031 564 1155
Fax: 031 564 1228
 
Email: [email protected]
Website: www.hrtorque.co.za
 
Address: 163 Umhlanga Rocks Drive
Durban North, KwaZulu-Natal
 
FB
 
Sales
Melany Bydawell: 031 582 7425 / 083 441 5618
[email protected]

Payroll & HR Administration
Karen van den Bergh: 031 582 7413 / 082 891 1722
[email protected]

Human Resources / Employee Relations
Melany Bydawell: 031 582 7425 / 083 441 5618
[email protected]
 
Employment Equity & Skills Development
Melany Bydawell: 031 582 7425
[email protected]
Nicky Hardwick: 031 582 7418
[email protected]
 
Tax
Dave Beattie: 031 582 7410
[email protected]

Executive Coach and Team Interventions
Melany Bydawell: 031 582 7425
[email protected]
 
Payroll Third Party Administrator

Kacey Chetty: 031 582 7409
[email protected]
 
Accounts
Cheryl Naidoo: 031 582 7408
[email protected]

Dispatch
Karl van der Merwe: 031 582 7407
[email protected]