Release 6.0 – March 2019

SDL SETUP IN PAYDAY RELEASE 6.0 Background

Many PayDay users experienced problems with the Skills Development Levy when reconciling the IRP5s. The SDL was historically not reported to SARS per employee. This however changed and the SDL must now reflect on the IRP5 per employee. Some users do not have an SDL line on the Salary Screen while others do and the SDL amount is calculated by means of a formula. PayDay created a new SDL Deduction Type with the 6.0 release. Users without an SDL deduction line on the Salary Screen should create a new deduction line on the system with this new SDL Deduction Type. Users who already have an SDL deduction line should disconnect the formula and change the line type to SDL.

Important: The company/payroll must be in March 2019. The setup is done per company.

Procedure for users who do not have an SDL line setup on the Salary Screen On the Company, Deduction Definitions screen, use an empty line to do the setup as per next example. In the example the SDL line is Z.

• The Screen Description should be SKILLS or SDL.

• The Deduction Type should be D-SDL.

• Deduct for Tax is No.

• Tax CC is No.

• Capture a Payslip Description.

• Leave the Tax Code blank.

Once this setup is done, run a Recalculation. The SDL amount will now reflect on the Company Contribution screen of each employee. The SDL total will also reflect as a Company Contribution on the Monthly Summary report.

Procedure for users who already have an SDL line setup on the Salary Screen

On the Company, Deduction Definitions screen, change the Deduction Type on the existing SKILLS line to D-SDL. Two types of formulas could be in use to calculate the SDL amount:

• A global formula – If the Deduction Type is No Formula, then a global formula is used.

• A formula linked to the SDL line – If the Deduction Type is Formula, then a formula on the line is

most probably used.

Example of a global formula.

In the example the global formula for SDL is B.

This formula will be linked on either Global line g or Global line h, as per the next example. Determine on which line it is and type a “g” or “h” in the Earning/Deduction Number field and <enter>. Note the warning and click on “Yes”. Remove the SDL global formula link (in the example “B”). Be careful not to move or delete the other codes.

Example of formula on the SDL line.

In the example the formula on line Z is 1.

This formula would be linked to each individual employee on the Formula Connection screen.

To disconnet the formulas from all the employees: On the Main Menu, select Special Functions, then Formula Connection (Mass). Once the screen is completed as per the next example, press the <enter> key. The system will now disconnect all employees from the SDL formula. Do a normal recalculation if all the steps are completed.

Type the SDL line number

Type a 0 (Zero)

Type the existing formula number