What's new in PayMaker in 2015

Due to changes announced in the 2015 budget, and changes introduced by FNPF, we have released a new version of PayMaker. Some of the changes in the new version include:

• FNPF Changes: Allow 10% Employer Contribution
• FNPF Changes: Allow excess employee contribution
• FNPF changes: Allow monthly exporting of contributions
• PAYE Changes: Changes in formula based on revised FRCA spreadsheet
• PAYE Changes: Change in EMS file format to cater for new 11-digit FNPF member number
• PAYE Changes: Special Tax Rate for employees on S (secondary) employment
• PAYE Changes: Allow Benefits such as excess FNPF (Employer)

We are committed to doing our best for our customers so that they are compliant with any regulations that affect payroll in Fiji. 

Although these changes were announced fairly late in the year, our team worked with FRCA and FNPF to ensure that all file formats etc met their requirements. 

The team have worked through the holiday season to udpate the software and are now busy rolling out the update to our customers.

Please contact us on 3304554 or payroll@standss.com.fj if you need more information.

Check the Number of Pay Periods BEFORE your first pay.

You may need to update the number of pay periods in PayMaker before you process your first pay for the year.

The number of Pay Periods is important because it is used in FRCA’s formula to calculate the PAYE.

The number of pay periods in a year can vary, particularly for weekly or fortnightly pays depending on the week-ending day.

How to calculate the number of Pay Periods

This has to be done manually. Use a calendar to work out the number of pays that you will be paying this year.

For weekly pays, this number will usually be 51, 52 or 53. For fortnightly pays, the number will usually be 25, 26 or 27.

Where to update the number of Pay Periods in PayMaker

Start PayMaker.
Click the Administration button on the main menu.
Open the Standard Payrolls screen (double click Standard Payrolls on the menu).
Move to the relevant payroll and ensure that value under Total Pay Periods THIS year is correct.

You need to do this for all the different types of pay paid out by your company!

Effect on First Pay because of 10% Employer FNPF Contribution in 2015

How should you process the first pay of 2015 if it includes some days from 2014.

As of 1st January 2015, the compulsory employer contribution for FNPF has increased from 8% to 10%. Employee contribution (compulsory) remains at 8%. Both employers and employees can also make voluntary contributions to a total FNPF contribution of 30% (employer and employee combined).

What should you do if your first pay of 2015 includes some days from 2014?

FNPF is not interested in the individual days for which the pay was for. Instead it calculates the contributions based on the pay date you entered for the entire pay (usually the week-ending date).

OPTION 1

The easiest thing to do is to treat the entire pay as a 2015 pay.

This means that the employer will pay an extra 2% FNPF for the few days which were still in 2014.

OPTION 2

Create two separate pays… Pay 1 will be for the remaining days in 2014 and Pay 2 will be for days in 2015.

If you choose to do this, then you will need to process Pay 1 before you carry out your End of Year updates for 2015.

The downside of this is the extra work involved in preparing and paying out two separate pays.

What the 2015 Budget means for payroll

A number of changes were announced in the 2015 budget by the Fiji Government on 21st November 2014 that affects all employers and employees in Fiji.

FNPF

From 1st January 2015, all employers are required to contribute 10% FNPF for employees. This is an increase in the compulsory contribution from the previous 8%.

The employee (member) contribution remains at 8%. However as per the FNPF announcement earlier this year, employees are also now able to make voluntary contributions. In the past the voluntary contributions could only be made by employers.

This means that the total COMPULSORY contribution will now be 18% (10% by employers and 8 % by employees) and the total contribution can go as high as 30%.

PAYE

No changes were announced to the PAYE tax rates.

However, while it was not a part of the budget announcement, it is our understanding that FRCA may change the formula used for tax calculation to cater for a few problems with the formula introduced in 2013.

What does this mean for PayMaker users?

As always PayMaker users can be confident that the team at Standss will ensure that their payroll system will continue to meet all FRCA and FNPF requirements.

The 2015 budget changes will require another update to PayMaker before the start of the year.

The development team are already working to implement the FNPF changes. We are waiting to find out if FRCA also requires any changes so that we can keep costs down for customers by doing the updates in one release.

We will email or fax all customers with details of the update in the next few weeks. 

In the meantime, if you have any questions, please email us at payroll@standss.com.fj

Employers MUST submit FNPF payments using new forms

FNPF has released a revised format for the CS form. The CS form (or Contribution Schedule) is the form that employers submit with payment to FNPF at the end of the month.

Payments made in November (for deductions from October) wages must be made using the new CS form.

These changes are part of FNPF's transition to new systems and processes due to new laws that come into effect on 1 November 2014.

We have upgraded PayMaker with the new form so that our customers can continue to prepare their monthly reports literally at the click of a button.

We are contacting customers to arrange a convenient time for the upgrade.

PayMaker users who have not been contacted yet can call our office on 3304554 or email us at payroll@standss.com.fj  to arrange a convenient time for our team to carry out the upgrade.
If you are not a PayMaker user (yet), click here to learn why we are Fiji's Number 1 payroll solution.

Don’t Forget Your End of Year Payroll Procedures

Before you process your first pay of 2014, please remember to carry out the End of Year Rollover which includes:

• Repairing and backing up your payroll data for 2013
• Clearing your Year to Date totals for 2013
• Clearing leave totals as appropriate

Make sure to contact your payroll software supplier to get instructions on how to do this using the software.

PayMaker users can follow the steps below:

• Process your last pay for 2013
• Repair your data files in case data files have been electronically corrupted in any way (Leaving your data in an unstable state can lead to data loss)
• Create a backup copy of your payroll data files. Make a separate copy that contains 2013 data.  
• Clear Year-To-Date totals for calendar year (and financial year if appropriate)
• Clear Leave Totals as appropriate

You must carry out the End of Year procedures in the correct order to ensure that 2013 records are accurate as per the FRCA’s requirements. Our trained staff can do this for you at your office (or remotely if you are outside Suva)

For PayMaker customers: Please email us at payroll@standss.com.fj or call us on 330 4554 to schedule your End of Year Service and Upgrade.

Standss is now on Facebook

Get the latest information on payroll changes that affect Fiji employers and employees on our Facebook page. Simply visit our Facebook page and LIKE it to get regular updates on your Facebook newsfeeds.

Looking for a Payroll software that is Tax Compliant? Contact us now: Ph: +(679) 330 4554 Fax: +(679) 330 4864 Email: payroll@standss.com.fj http://www.standss.com.fj

MAJOR changes to Payroll Processing for ALL EMPLOYERS

The Fiji Government has again made major changes to how payroll is to be processed from 2014. 

While the tax rates have not changed, the method of calculation has now changed significantly.

The new method of calculation was gazetted on Friday November 22nd 2013.

These changes are to further streamline the implementation of the PAYE as Final Tax which was introduced in 2013.

If you are a PayMaker user, you do not need to worry. PayMaker is currently being updated and will be fully compliant. We will provide you with more information as part of the End of Year Service.

This change is mandatory and all  payroll software vendors will be required to incorporate this new PAYE formula and have the software tested and certified by FRCA.

If your company is not using PayMaker, you need to ensure that your provider is implementing these changes so you are tax compliant in 2014. Employers who do not comply too the tax requirements can be charged large fines and penalties

Looking for a Payroll software that is Tax Compliant? Contact us now: Ph: +(679) 330 4554 Fax: +(679) 330 4864 Email: payroll@standss.com.fj http://www.standss.com.fj

Standss is now on Facebook  

Get the latest information on payroll changes that affect Fiji employers and employees on our Facebook page. Simply visit our Facebook page and LIKE it to get regular updates on your Facebook newsfeeds.