State Payroll tax rate changes for SA, 2017/18

Legacy KB ID: 5565

Question

State Payroll Tax for SA has changed to 2.5% for small businesses. My Payroll Premier 2017/18 is calculating it in incorrect rate, how do I fix it?

Answer

SA government has just published the new state payroll tax for Small Business whose Taxable payroll ranges from $600,000 to $1 Million. The tax rate is lowered to 2.5% from 4.95%. For More details please refer to SA website or contact your accountants.

Payroll Premier 2017/18 will not be able to incorporate this changed as it was already released when SA made this change. We apologise for the inconvenience.

Please follow the below workaround to calculate it manually.

Workaround:

If you are small business processing payroll in SA and your taxable payroll ranges from $600,000 to $1 Million, please follow the below instructions to calculate the tax manually at 2.5%.

1) Go to Lists menu on top and go to Payroll tax scales.

2) Double Click on SA Payroll Tax to edit it.

3) Go to over 600,000 line and under Multiplier columns enter 0.025.


If your Taxable Payroll annually exceeds $1.5 million the rate is 4.95%

Continue below to add a new line if it exceeds $1.5 Million.

4) Click on insert to enter the new line.

5) Go to Threshold column and enter Over $1,500,000

6) Enter 0.0495 in Multiplier

7) Enter 0000 under subtract field.

If your Taxable Payroll falls between $1 Million and $1.5Million, find out the rate from SA and enter them as step 4-7.

This will be the correct tax amount you are liable to pay for SA.

Need more help?

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