Updates in SimplePay for the 2019/2020 Tax Year
As we enter the new tax year on 1 March, we’d like to remind you that there is no need to do a manual year end as in other payroll systems – simply continue processing payslips into the new tax year.
When you need to do your filing, the correct period will automatically be used and the relevant documents will be generated. For more information, please see our help site.
In addition, our system has already been updated in order to ensure that you are always compliant. We are pleased to inform you that as from 1 March 2019, your payroll will automatically meet all the requirements for the 2019/2020 period, as announced in the 2019 Budget Speech on 20 February 2019. If you are still processing payroll for the 2018/2019 tax year, the old tax tables will still be used, as you’d expect.
Here are some of the most important changes that you will see in your payroll for the coming year:
2019/2020 Tax Rates
The tax rates for individuals have remained the same as last year, with only the tax thresholds and rebates increasing.
| Taxable Income (R) | Rate of Tax (R) |
| 0 – 195 850 | 18% of taxable income |
| 195 851 – 305 850 | 35 253 + 26% of taxable income above 195 850 |
| 305 851 – 423 300 | 63 853 + 31% of taxable income above 305 850 |
| 423 301 – 555 600 | 100 263 + 36% of taxable income above 423 300 |
| 555 601 – 708 310 | 147 891 + 39% of taxable income above 555 600 |
| 708 311 – 1 500 000 | 207 448 + 41% of taxable income above 708 310 |
| 1 500 001 and above | 532 041 + 45% of taxable income above 1 500 000 |
The tax threshold has increased from R78 150 to R79 000 because the primary rebate has increased from R14 067 to R14 220.
Subsistence Allowance
The ‘tax free’ portion for the subsistence allowance** has increased as follows:
- The allowance for incidental costs within South Africa has changed from R128.00 to R134.00.
- The allowance for meals and incidental costs within South Africa has changed from R416.00 to R435.00.
**It is important to note that the subsistence allowance is only a guideline provided by SARS and is not legislated.
The Medical Aid Tax Credits have remained unchanged at R310 for the main member and first dependant and R209 for every additional dependant. Additionally no changes were announced for the common payroll components of Travel Allowance, UIF and SDL
If you have any questions relating to the above changes, you are welcome to email us at support@simplepay.co.za to assist you with these queries.
The SimplePay Team