HRTorQue REPORTER

Welcome back to Nicky Hardwick (HR Division) following her maternity leave. Congratulations to Steven Richman (Payroll Division) on his marriage and to Tracy Reeves (Accountant) on the birth of her son.

We also welcome Iole Matthews as an experienced coach and facilitator with particular expertise in conflict resolution and mediation. As well as having 19 years of hands-on experience, Iole has a degree through the Faculty of Education at UNISA's Unit for Training and Development and has a Primary Certificate in Redundancy Coaching and Counselling and a Certificate in Coaching via the Centre for Coaching (UK) and Middlesex University.

Iole is an active member of CoMenSa (Coaches and Mentors of South Africa) as well as the ILM (Institute for Leadership and Management).

In the pressurised and action orientated world of small and medium sized business, a coach might well be the ultimate secret weapon in maximizing your potential.

While the corporate world has long used coaches to support and develop executives, smaller businesses that face similar challenges have rarely had access to this type of support. Without all the resources of big business, entrepreneurs in medium and small businesses often feel isolated and short of support as they deal with day to day issues. They also often face additional pressure as they play multiple roles, which might include managing staff, planning strategy, monitoring production, customer service and finding new markets, the list is endless.

In this pressured environment, trying to find time for full day training workshops and seminars means that personal development goes way down the wish list and becomes a "nice to have" rather than an integrated part of business operations. This is where coaching can provide an efficient and effective solution for achieving personal and professional excellence.

So what is coaching? Essentially coaching is a focused and co-operative partnership with someone whose only agenda is your agenda. A coach works with you to identify where you are now, defines where you want to be and then supports you in getting there in the most effective way. Sessions are scheduled every three to four weeks and run for approximately an hour, with additional support provided via telephone, or even Skype. A coach can act as a sounding board in thinking through important decisions, can help with accountability around action plans and build momentum by helping you take responsibility for results and outcomes.

An investment in business coaching pays for itself, increasing the bottom line, getting more done by working smarter, helping you work with renewed passion and finding ways to reclaim your life by improving your work-life balance.

However, before you consider coaching, ask yourself some key questions:
1. Am I ready to create and clarify a compelling vision for my life and business?
2. Am I ready to take action on that vision?
3. Am I open to trying new ideas instead of continuing to do the things that have not worked in the past?
4. Am I willing to stop self-defeating behaviors?
5. Am I willing to discover and change fears and beliefs that hold me back?
6. Am I ready to accept responsibility for my success and happiness in life?

If you answered yes to these questions then business coaching is for you. Next month we'll discuss how to find the right coach for your needs.

Contact Melany Bydawell for further information on [email protected]

The Minister of Labour increased the annual COIDA Earnings Limit for the 2012/2013 tax year from R 277 860 to R 292 032 effective from 1 April 2012 as stated in Government Gazette number 35432, Notice no 446, dated 8 June 2012.
 
As a result of the above effective date, a split is required in the 2012/2013 reporting year.

The earnings threshold has been increased from R172 000 per annum to R183 008 per annum, with effect from 1 July 2012. Therefore, employees earning in excess of R183 008 per annum will be excluded from the protection granted by labour laws for maximum working hours, meal intervals, overtime and many more.

We urge employers to review employment contracts in order to ascertain whether all clauses are still valid and/or their payrolls or they may unintentionally grant them contractual rights over and above the statutory ones. The earnings threshold in the act operates to exclude employees earning above the threshold from certain BCEAct entitlements and protections.

Employees earning above the threshold are excluded from working times protections such as maximum working hours, meal intervals, limitations on how much overtime may be worked, minimum rest intervals, shift allowances and access to night transport.

At a recent forum meeting at the CCMA it was mentioned that the focus for commissioners for 2012/2013 will be on re-instatements as the primary remedy for dispute resolutions.
 
There is a move away from 'compensation' to the possibility of 're-instatement' when settling matters and employers are urged to ensure that their hearings are well prepared and chaired by competent individuals. HRTorQue will shortly be advertising workshops to up skill employers on the preparation and presenting of evidence at hearings, as well as formulating and giving warnings to employees.

We have reached that time of year again when designated employers need to start thinking about their Employment Equity submissions. Failure to comply could result in substantial fines and an audit from Department of Labour.

A designated employer means:
a. A person who employs 50 or more employees;
b. A person who employs fewer than 50 employees but has a total turnover that is equal to or above the
    applicable annual turnover of a small business in terms of Schedule 4 of this Act;

All designated employers are then required to comply with the following in terms of the Employment Equity Act.

1. Submit Employment Equity Reports and Income Differential statement by 1 October 2012.
2. Assign a Senior Manager to manage and implement Employment Equity in the company
3. Establish a Consultative Forum
4. Prepare an Employment Equity Plan

For more information on upcoming workshops or for assistance with your Employment Equity submission please contact Nicky Hardwick: [email protected].

Half Day Workshop with Nicky Hardwick

Workshop objectives:

Dates: 15 August 2012 or 29 August 2012
Time: 08h30 - 13h30

For more information contact [email protected]

Despite a recent meeting of the Reserve Bank, interest rates remain unchanged (thankfully!).

The current rate to be used when determining the fringe benefit value for a low or interest free loan provided to an Employee is 6.5% (i.e. the REPO rate of 5.5 plus 100 percentage points - giving 6.5).

Don't get too relaxed as anything can happen in the next quarter - there is a meeting scheduled very soon and there are some murmurings of an increase!

May we never hear this acronym again!

Just a reminder that we are in the last year of SITE (Standard Income Tax on Employees). By the end if this tax year this method of taxation will fall away and all appropriate earnings will be subject to the normal PAYE calculations/tables.

All employers engaged in the hospitality sector within South Africa are obliged to ensure that all employees employed by them are paid according to the minimum wage. This minimum wage is reviewed each year and is published in June to take effect from 1 July. The wage increases is based on CPI (excluding owners' equivalent rent) of 6.4% as reported by Stats SA on 23 May 2012 plus an additional 1% equalling 7.4%.

Therefore the new minimum wages for the period 1 July 2012 to 30 June 2013 are as follows:

Employers with 10 or less employees:
Hourly - R11.49
Weekly - R517.10
Monthly - R2240.60

Employers with more than 10 employees:
Hourly - R12.80
Weekly - R576.00
Monthly - R2495.80

The Services SETA has extended their deadline for the Skills Plan (WSP and ATR) submission until 31 July 2012 due to problems with their online system.

Please contact Nicky Hardwick urgently if you need assistance with your Skills Development submission. Services SETA has warned clients not to leave this submission to the last minute as the system might give problems again at the last minute due to the inability to handle the large volumes of visitors.

You are reminded that HRTorQue is able to assist you in the submission of your Workplace Skills Plan and Annual Training Reports on a retainer or once off basis.

The exempt portion of the bursary must be recorded in Code 3815 on the tax certificate, whilst the taxable portion must be recorded in Code 3809.

A recent query regarding this:
If the employee's normal earnings is less that R 100 000 p/a and
A) the Employee gets an increase after the granting of the bursary which pushes him/her over the R 100 000 p/a ceiling or
B) the Employee gets a bonus, incentive bonus or any other "once off" type payment in the year which pushes him/her over the R 100 000 p/a ceiling...
Does the Employee now have to be taxed on the bursary value previously granted?

Answer:
Generally no. Where the additional amount paid to the employee is not going to be considered as normal/regular earnings.
Generally yes. If the amount paid becomes a regular payment (i.e. an increase in the employee's package which pushes his normal earnings over the R 100 000 p/a.
 
In any event SARS will check this again at assessment time.

An online submission service has been introduced by the Compensation Fund.

Employers that would like to make use of this facility can log on and register on the Department of Labour website (www.labour.gov.za), Online Services - Compensation Fund Return of Earnings Submission. This will enable employers to submit their 2011 return online.
 
Or you can contact [email protected] for assistance.

Contributions to a scheme through which an employee (or his dependents) will gain a direct benefit are now taxable (as of March 2012).

If, for example, a contribution to a group life scheme is made by the employer which includes, for example, a funeral benefit/pay out, the portion of the contribution which goes towards the funeral policy must be taxed as a fringe benefit.

Not as easy to do as it may sound! Most policies don't stipulate the actual portion of the contribution that is related to the funeral policy. In most cases, the only way to determine this is to discuss with your insurance advisor (and get something in writing to this effect).

Similarly, if there is a group payment (i.e. which covers X number of employees) and there is no specific amount for each individual employee mentioned in the contract, then common practice is to divide the total employees covered by or who are named on the policy by the total contribution thus arriving at a pretty accurate estimate as to the "contribution" value per employee. Once again, discuss with your advisor and make sure you get something in writing.

Contact Dave Beattie for assistance in this regard: [email protected]

Please note that SARS has sent a notice to all institutions that pay interest and are collecting this information for their database. They intend to match this information with what has been declared by individuals on their tax returns.

Make sure that you enter all the interest you earn correctly on your tax return. If you need assistance with your annual tax return, email [email protected].
 
Filing seasons for individuals opened on 1 July 2012.

Some of our clients have received numerous queries from their staff regarding IRP 5 certificates not reflecting on eFiling (on the employees' tax returns). One client queried this matter with SARS and was told that SARS can see the certificates on their system. HRTorQue addressed SARS Large Business Centre for a resolution and received the following response on 3 July 2012:

"There seems to be a general problem where some clients are requesting their IT12 Returns and the IRP5 information is not pre populated. You may have already received calls from Payroll Administrators etc. complaining that their employees are not getting this information on their Returns. We checked on SSM and the submissions are successful, the certificates pulled through successfully and passed validation so the problem seems to be on the ATP pre population side.

Please advise them that Head Office is aware of the problem and is currently working on it. In the meantime, can you please forward me these cases so that I can log them to Revenue-Risk until the problem has been resolved."

For assistance in this matter please contact [email protected]

This is applicable to all employees regardless of earnings levels.

If a public holiday falls on a day on which an employee would ordinarily work, an employer must pay an employee who does not work on that day, at least the wage that the employee would have received for working on that day.

If an employee does work on a public holiday that falls on day that the employee would ordinarily have worked, he must be paid:
•  At least double the wage he would ordinarily have received for working on that day; or
•  If it is greater, one day's normal pay plus the amount earned by the employee for the time worked on
   that day

This is applicable to all employees earning less that the current exemption limit, which is currently to R183 008 per annum, with effect from 1 July 2012.

If an employee works on a public holiday that falls on a day on which the employee would not ordinarily work, he must be paid:
•  His ordinary daily wage; plus
•  The amount he has earned for the work performed on the public holiday, whether calculated by
    reference to time worked or any other method.

If a shift worked falls partly on a public holiday and partly on a non-public holiday, the whole shift is deemed to have been worked on the day in which the greater part of the shift was worked.

Note that 'wage', for the purpose of payment for a public holiday, has the same meaning as for overtime (basically the cash component or basic pay).

An interesting Labour Court decision was made in 2006, following a dispute between a trade union and an employer whose staff worked continuous shifts (including Sundays). When a public holiday falls on a Sunday, the Public Holidays Act provides that the following Monday becomes a public holiday. The dispute was whether the Sunday reverted to being a normal Sunday, or whether the Sunday remained a public holiday. The decision was that both days were public holidays (which had an effect on the payment to made to employees for working on that day).

Head Office (Durban) Phone: 031 564 1155 Fax: 031 564 1228 Email: [email protected] Website: www.hrtorque.co.za Address: 163 Umhlanga Rocks Dr, Durban North     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] 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]