HRTorQue Outsourcing
HRTorQue Reporter
May 2015
 
HRTorQue Reporter Archive
Table of Contents
1. Employment Equity - Revised Policy
2. Business Processes = Business Continuity
3. Cultural And Perception Surveys - Employment Equity Act
4. The Ripple Effect
5. Should UIF be deducted from foreigners?
6. UIF Remuneration Limit Decrease Postponed
7. Testing for Intoxicating Substances, Polygraph Testing and Searching
8. Return of Earnings - W.As 8: March 2014 - Feb 2015
9. Compensation Fund W.As 8 Annual Return Forms
10. Statutory Rates of Tax: 2016 Year of Assessment
11. Unemployment Insurance Fund Contributions
12. Travel Reimbursements
13. Subsistence Allowanced and Advances
14. Contact the HRTorQue Team
1. Employment Equity - Revised Policy
Author: Melany Bydawell
Following the recent amendments to the Employment Equity legislation, we have updated the Employment Equity Policy.

If you have previously purchased a customised HR and Disciplinary Policy manual from HRTorQue and would like the update contact Melany Bydawell [email protected] for the update.
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2. Business Processes = Business Continuity
Author: Melany Bydawell
Does this conversation sound familiar?
 
"My employee, he/she stormed out of the office (or absconded from duty) a week ago. He/she has the password to the computer so we can't access any of our information (whatever that may be), has the only set of keys (to whatever the access point is), is the only one that knows how to process (whatever the activity is), will not respond to our phone calls and emails and our business has come to a standstill. He/she has been here 10 years and I trusted him/her. I have now received a letter from an attorney. What shall I do?"

We do hear this on a regular basis!

Apart from the liaisons between the attorney and employee, which are unavoidable, tensions escalate because of the inability of the business to operate due to lack of basic job profiles and business processes mapping out key performance areas and functions within the business.

Avoid this happening to your business and contact Melany Bydawell for assistance [email protected].
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3. Cultural And Perception Surveys - Employment Equity Act
Author: Melany Bydawell
Why are Cultural & Perception Surveys conducted?

Aside from the requirements of the Employment Equity Act - Affirmative Action mentioned below, perception surveys are most often used when an organisation wants to establish how employees understand or feel about their situations or environments. They can be used to establish what is working well within an organisation, assess needs, solve challenges that the organisation is unaware of, and much more. Surveys reveal what exists, in what amount, and in what context.

Surveys can also be used far beyond just a way to gather information. They can:
•   Identify gaps and provide recommendations to address the gaps between what is said and what is actually practiced.
Highlight differences between management and employees, realising that the larger the gap, the greater the challenges.
Identify gaps between organisation's goals and its actual policies.
Determine where current projects work and where they fall short.
Be an operational tool because responses from employees can really drive action.
Encourage open communication among various organisational layers.

Many organisations are conducting surveys and it is important that they be careful and assured that the chosen questions and survey will provide responses that will be useful to its operation. In other words, the survey must be confidential, reliable and validated.

An internal Employee Cultural and Perception Survey is a structured meeting with each employee, or selected employees across all race groups and categories of staff, measuring the perceptions, feelings and attitudes within an organisation. The objective of conducting this exercise is to ascertain the current climate within the organisation focusing on a number of cultural and work related themes.

If the cultural climate of an organisation is compromised, the effects may reflect in many areas not only be evident in the financial results, but also on service delivery, inter-departmental functioning, high turnover of staff, low employee morale, high rate of absenteeism, reluctance to change and many more areas.

The information gathered will provide your organisation with:
•  A high level overview of the prevailing cultural and work related perceptions
•  Departmental / Site perceptions
•  The greatest challenges or problem areas as seen by employees
•  Data to formulate internal action plans to address identified gaps and
•  An opportunity to initiate change in a positive direction.

What Are Perceptions?
 
Perceptions are the way individuals hear and see and interpret via their sensory input, and then name it 'reality'. They are important because people's behaviours are more often based on their perception of what reality is. Perceptions can differ vastly for a number of reasons, for example, life experiences, education, religion, and personal factors such as attitudes. It follows that, by definition, individuals' perceptions are neither right nor wrong.

Individuals' occupations or positions can further influence these perceptions. For example, individuals in various employment categories may perceive the same process, such as safety, totally differently so one of the major goals is to align the perception of safety along the same lines for all organisational members.

Legislation

In terms of Employment Equity Act, 55 of 1998, issued in terms of Section 25(1) - Duties of a Designated Employer: Section 13
a.   A designated employer must implement affirmative action measures for designated groups to achieve employment equity.
b. In order to implement affirmative action measures, a designated employer must:
•  consult with employees;
•  conduct an analysis;

Affirmative Action measures: Section 15 states that:
a.   Affirmative action measures are measures intended to ensure that suitably qualified employees from designated groups have equal employment opportunity and are equitably represented in all occupational categories and levels of the workforce.
b. Such measures must include:
•  identification and elimination of barriers with an adverse impact on designated
    groups;
•  measures which promote diversity;
•  making reasonable accommodation for people from designated groups;
•  retention, development and training of designated groups (including skills
    development); and
•  preferential treatment and numerical goals to ensure equitable representation. This
    excludes quotas.

Consultation: Sections 16 and 17 states:
A designated employer must take reasonable steps to consult with representatives of employees representing the diverse interests of the workforce on the conducting of an analysis with employees from across all occupational categories and levels of the employers' workforce, from designated groups and employees who are not from designated groups.

Analysis: Section 19
A designated employer must conduct an analysis of employment policies, practices, procedures, and working environment so as to identify employment barriers that adversely affect members of designated groups.
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4. The Ripple Effect
Author: Anivesh (for further information contact Melany Bydawell)
Are you interested in educating your employees in health and safety issues?
Would you like to order a sample pack free of charge?

Contact Anivesh on 083 778 1991.

The Ripple Effect is a novel and awarding winning newspaper. The newspaper focuses on key Employee Assistance issues, as well as Occupational Health, General Health and Safety in the workplace. Organisations - companies, government departments and NGOs - subscribe to the publication in bulk and circulate copies to their staff.

The Ripple Effect is a valued part of the health and safety programmes of leading South African organisations like Total SA, Sun International, Unilever, Mondi, Government Departments and Municipalities, AECI, Sedipeng Water and many more organisations. Content for The Ripple Effect is determined by the SA Health Calendar, which ensures that the articles are topical and interesting.

The Ripple Effect is now just over 10 years old, 123 editions and roughly 1,7million copies have been printed and distributed during this time! Many of these copies are still in circulation as Health and Safety practitioners file the copies to use as reference material.

To find out more about The Ripple Effect and other products from Micromega Publications visit www.rippleweb.co.za. To request a sample pack of The Ripple Effect or to subscribe, email [email protected], or call Anivesh on 083 778 1991.

Enquire about the offer for new subscribers - R550 of free products if you subscribe to 5 or more copies for 12 months (cost R581.40 once-off cost for a year's subscription).
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5. Should UIF be deducted from foreigners?
Author: Karen van den Bergh
Section 4 (1) (d) UIF Contributions Act 4 of 2002 does exclude certain types of foreign employees from contributing, in circumstances where they enter SA for a contract of service, apprenticeship or learnership of a fixed duration, and on termination of such service or learnership they must return to their home country by law or as per the contract.

If there is no legal or contractual obligation on the employer to repatriate the employee to his home country on termination of the contract, then the exclusion will not apply and UIF contribution would have to be deducted and paid over.

Can foreigners claim UIF in SA?
As to the claiming of benefits, the UIF Act does not specifically exclude non-residents in section 14, and the benefits seem to apply to all "contributors", in section 12 and 16 who comply with the provisions of the UIF Act.

A "contributor" is merely defined in Section 1 as a natural person, who is or who was employed, to whom the Act applies and who have made contributions.

We are also not aware of any legislative prohibitions for permanently employed foreign nationals who have a passport, relevant working permits and are UIF contributors to claim UIF Benefits.
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6. UIF Remuneration Limit Decrease Postponed
Author: Karen van den Bergh
The Minister of Finance has decided to postpone (for at least a year) the decrease proposed in the 2015 Budget of the UIF remuneration limit from R14 872 pm to R1 000 pm to allow more time for further consultation.

Note that the consultations will focus on:
1.   The need to implement the UIF Amendments Bill (the main purpose of this Bill is to increase the value of the benefit).
2. Review of other earmarked taxes such as UIF, the Road Accident Fund and the Skills Development Levy (proposals of this intent were also made in the budget).

As with the postponement of the retirement reforms from 1 March 2015 to 1 March 2016, mention is made of "...engagement over the broader social security reform process".

Take note for your planning for future payroll development that it looks likely that changes could be made to UIF, the Skills Development Levy, and possibly to the retirement reforms that are already promulgated with an effective date of 1 March 2016. The extent of these changes and the effective dates are obviously dependent on the outcome of the discussions, and we will keep you informed as the process moves forward.
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7. Testing for Intoxicating Substances, Polygraph Testing and Searching
Author: Melany Bydawell
Do you have the correct clauses in your contract of employment and HR policies?

As we experience an ongoing increase in substance abuse, together with incidences of dishonesty and theft in organisations, it is important that you have the correct clauses in your contracts of employment with your employees and HR policies. This enables you to facilitate and manage these incidences with limited conflict because your intentions and processes are clearly defined from the outset.

Often policies and contracts are well documented but there is limited or no verbal communication and clarification of these policies and procedures with all employees and this is vital to gain a common understanding of what is required and why to create a trusting and open environment.
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8. Return of Earnings - W.As 8: March 2014 - Feb 2015
Author: Karen van den Bergh
On or before 30 April 2015, you are required to submit this Return of Earnings to the Department of Labour, this is legislated under the: COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (NO. 30 OF 1993). Each registered business must submit a separate return.

This Act replaces the Workmen's Compensation Act and provides for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, and for death resulting from injuries and diseases. The benefits are paid from the Compensation Fund, which gets its money from compulsory contributions, paid by employers. All employers carrying out business within the Republic of South Africa are required to register. If you require more information regarding this Act, please contact me: [email protected].

Permanent, temporary, and casual employees are to be included in this return. If you have casual or temporary employees that you do not put on your payroll that we do not have records for, please send this information to Kacey, so they can be included along with the payroll information for the year. The directors or members are to be reflected separately on the report, if they are not paid via the payroll, please advise Kacey of this information.

We are required to report on the earnings to a maximum of R312 480.00 per employee per annum, for the tax year March 2014 to Feb 2015.

You are also required to make an estimation of the remuneration and number of employees monthly for the next tax year that will begin shortly. This enables the Commissioner to budget for the following year, and to fix the new OID limit. At the time of sending this communication the limit for the tax year March 2015 to Feb 2016, has not been published yet.

If you have not requested this service from us in the past and require us to complete and submit this return on your behalf, please contact Kacey on [email protected]. If we have submitted from you in the past then Kacey will contact you via email for the details we require. The cost for this service is R596.76.

The Department of Labour have made an online service available, which we have access to. Via this portal we are able to logon to the database and check the status of the returns for the clients for which we provide this service, and to capture the returns directly into the database. Once we have submitted the ROE via the online service, you will be assessed immediately.

We will email that assessment to you and you must pay within 30 days. Unfortunately, we cannot make this payment for you. It must be made directly from your organisation to the Compensation Commissioner, and you have the following payment options available:

Paying by Cheque
Employers can send a cheque to: The Compensation Commissioner, PO Box 955, Pretoria 0001. If they send a cheque, employers must include the remittance advice part of the notice of assessment with the cheque. Employers should also write their reference numbers on the back of the cheque.

Paying by Direct Debit
Employers can pay the amount directly into the Compensation Fund account at any ABSA branch. A deposit slip with the banking details of the Compensation Fund is attached to the notice of assessment that employers receive. The deposit slip also has a unique deposit reference number printed on it. If employers use another deposit slip, they must make sure that they include the reference number on that slip.

Paying by Internet Banking
The reference number is the number printed on the deposit slip they receive with the notice of assessment. The banking details of the Compensation Fund are also printed on the deposit slip.
 
Please keep copies of all payments for your reference.
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9. Compensation Fund W.As 8 Annual Return Forms
Author: Karen van den Bergh
The Compensation has confirmed that there is no change from last year to the layout of the W.As 8 annual return form for the 2014/15 year of assessment. Obviously, the maximum earnings for employees and working directors have changed from last year to this year. The deadline date for the declaration and payment of the W. As 8 annual return is confirmed as 31 May 2015.

Please contact [email protected] if you require assistance with the completion and submission of your annual Compensation Fund Return.

If you have not yet registered, please contact [email protected] for assistance.
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10. Statutory Rates of Tax: 2016 Year of Assessment
Author: David Beattie
The following new tax rates, rebates and thresholds proposed by the Minister of Finance in his Budget Speech on 25 February 2015 will come into effect on 1 March 2015.

Statutory Rates Applicable to Individuals
Taxable Income (R) Rates of Tax (R)
0 - 181 900 18% of each R1
181 901 - 284 100 32 742 + 26% of the amount above R181 900
284 101 - 393 200 59 314 + 31% of the amount above R284 100
393 201 - 550 100 93 135 + 36% of the amount above R393 200
550 101 - 701 300 149 619 + 39% of the amount above R550 100
701 301 and above 208 587 + 41% of the amount above R701 300

Tax Rebates Applicable to Individuals
Primary rebate: R13 257
Secondary rebate (for person 65 years and older): R7 407
Tertiary rebate (for person 75 years and older): R2 466

Tax Threshold Applicable to Individuals
Persons under 65 years: R73 650
Persons 65 - 74 years old: R114 800
Persons 75 years and older: R128 500

Medical Scheme Contribution Tax Credit
The medical scheme tax credit that will be effective from 1 March 2015 is:
R270 in respect of the taxpayer
R270 for the first dependant
R181 for each additional dependant

Residential Accommodation Fringe Benefit
The value of B in the formula prescribed in paragraph 9 of the Seventh Schedule has increased from R70 700 to 73 650 with effect from 1 March 2015.

Interest Rates
The official rate of interest applicable to interest-free or low-interest loan fringe benefits is 6,75%. No change to this rate has been announced.
 
The prescribed rate of interest applicable to the late or underpayment of tax is 9,25%. No change to this rate has been announced.
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11. Unemployment Insurance Fund Contributions
Author: David Beattie
The following statement was made in the Budget Speech by the Minister of Finance:
 
"The second special revenue proposal is a one-year relief measure in respect of Unemployment Insurance Fund contributions. Unlike the Road Accident Fund, the UIF has an accumulated surplus of over R90 billion. Improved benefits are now being introduced, but it is nonetheless possible to provide a temporary relief to both employers and employees. The proposal is that the contribution threshold should be reduced to R1 000 a month for the 2015/16 year. This means that employers and employees will each pay R10 a month during the year ahead, putting R15 billion back into the pockets of workers and businesses."

Although a decrease in the UIF threshold was announced in the Budget Speech, employers should be aware that it will only be effective from a date announced.
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12. Travel Reimbursements
Author: David Beattie
The alternative rate per kilometre has been reduced from R3.30 per km to R3.18 per km. This rate is applicable at the option of the recipient where the distance travelled for business purposes does not exceed 8 000 kilometres per annum and no other form of compensation is received.
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13. Subsistence Allowanced and Advances
Author: David Beattie
Local travel
 
The deemed daily amount for travel in the Republic (e.g. subsistence allowance) is:
•  R109 per day for meals and incidental costs.
•  R353 for each day for incidental costs only.
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14. 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
[email protected] or 083 441 5618

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

Human Resources / Employee Relations
Melany Bydawell: 031 582 7425
[email protected] or 083 441 5618
 
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]
 
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