The recently published legal changes to PAYE, as distributed within the Government Gazette in November 2010, will have implications for companies running SAP systems to manage HR and payroll.
Specialists in SAP system-driven HR, human capital management (HCM) and payroll solution development and application say that careful planning and strategic thinking will ensure effective compliance.
This is the view of management at Swicon360, a Britehouse Company and established business technology partner and solution provider within the international HCM, HR and payroll markets.
Swicon360 has extensive experience in SAP HCM implementation and support services in Africa. It is a SAP certified Business Process Outsourcing partner and SAP Special Expertise Service Partner.
The company is set up to provide the market with a range of critical services to assist in SAP system compliance with new regulations governing IRP5 management and submission. These regulations affect PAYE and IRP5 submissions for tax year ending February 2012.
Included in Swicon360’s portfolio of service and support is the offer of assistance to assure clients that their SAP system is legally compliant, to assist end-users to reconcile their IRP5s, to assist with any master data related to IRP5s and assist with Easyfile submissions.
According to information distributed by SAP Africa to clients, the legal changes to PAYE covers taxation on company cars, the official rate of interest and taxation on severance benefits.
“The SAP Localisation Team is in the process of developing a number changes. These include taxation on company cars and legislation to facilitate the appointment by SARS of employers as agents,” says Markus Bucher, CEO, Swicon360.
"It is important that the market pays careful attention to these developments and use alliances with established, credible service providers to ensure compliance and cover all necessary bases."
At present, there is no official deadline stipulated for IRP5 submissions.
Bucher confirms that the company will keep a vigilant eye on developments and assist its market if and where necessary, in order to align systems with the changes and regulate the process expediently.