Traditionally, Pastel Payroll releases the new legislative upgrades for our payroll applications within the first week of the new tax year. Our customers have become used to the fact that their first March payslips can be processed using the latest tax rates as announced during the budget speech each year. This year, the minister of Finance left us with very little time to stick to our normal release schedule as he delivered his speech in the last week of February. Customarily, the minister announces the budget during the second last week of February.
Our legislative upgrade, Pastel Payroll 2014 Update 1, will be made available as soon as possible. If you have updated your payroll data into period 1 of the new tax year to process March 2013 payslips, you should receive a message prompting you to install a legislative upgrade to apply the 2013-2014 tax rates. Even though the new update is not yet available, you will still be allowed to continue processing your March 2013 payslips based on the previous years’ tax rates. Pastel Payroll will allow you processing payslips using previous tax rates until you reach the May 2013 period after which you will be forced to install the latest upgrade.
The new tax rates for 2013-2014 are slightly lower than last year’s rates, therefore your employees will expect to pay less tax on their March earnings. If the new update is not ready by the time you need to pay your employees, it is totally acceptable to calculate their tax based on the 2012-2013 tax rates. On your next payroll run, after installing the upgrade, Pastel Payroll will automatically recalculate all taxes deducted to date to compensate for the reduction that should have been allowed on the first payslip.
I can confirm that the new version will be available soon and your monthly salaries for March 2013 will be calculated using the new tax rates. If you have an active internet connection on the PC where Pastel Payroll is installed, the 2014 Update 1 upgrade will be downloaded as soon as it is available via our Frictionless Update technology. If your installed version of Pastel Payroll does not have access to the internet, you need to download the upgrade from http://www.pastelpayroll.co.za and install it manually. Please keep an eye on your inbox as we will email our clients as soon as the upgrade is available. You can also return to this blog to stay updated with any new information regarding our latest software upgrades.