At a very high level the following summarises some of the key payroll impacts from the 2017 budget:
Updated Tax Rates for the period from 1 March 2017 to 28 February 2018:
Substance Allowances
- Meals and incidental costs, an amount of R397 per day is deemed to have been expended.
- Incidental costs only, an amount of R122 for each day which falls within the period is deemed to have been expended.
- Where the accommodation to which that allowance or advance relates is outside the Republic of South Africa, a specific amount per country is deemed to have been expended. Details of these amounts are published on the SARS website under Legal Counsel/Secondary Legislation/Income Tax Notices/2017.
Medical Aid Tax credits has been increased to:
R303 for the individual who paid the contributions and the first dependent on the medical scheme and R204 for each additional dependent.
Re-imbursive Travel Allowance
Where the distance travelled for business purposes does not exceed 12 000 kilometres per annum, no tax is payable on an allowance paid by an employer to an employee up to the rate of 335 cents per kilometre
COIDA Limit Increase from 1 April 2017 to R403,500.00.
New Allowances SARS Codes have been added.
Codes 3719, 3720 and 3721 for the use of Dividends not exempt.
ETI Min Wage Check
If the Monthly Remuneration is less than the monthly minimum wage, Monthly ETI value will be zero.