Sunday, February 05, 2012

 

About PSIberTAX - Package Structuring

PSIberTAX is a sophisticated Package Modeling and/or Salary Structuring Tool, which assists individuals and management to achieve the most tax efficient package structure/model. The product is extremely user friendly and intuitive, offering comprehensive field-by-field online help. No knowledge of taxation law is necessary as the tool guides the user through a series of questions and options. Where companies purchase the system for use by their employees, the system allows the HR Administrator to set up various modeling profiles per set of users, which in turn will assist the employees in understanding which Allowances, Benefits and Deductions they may and may not take advantage of. The system reflects the results in typical “gross to nett” format, showing the tax breakdown across the package as well as reflecting the expected annual tax savings.

 

Key features of PSIberTAX include :

 

·          On-line USER GUIDES and Field-by-Field help when using the system and structuring packages;

·          On screen Warnings and Information windows display when the user exceeds certain limits, does not adhere to current tax rules etc;

·          Shows the user exactly which allowances and benefits are taxable, partially taxable and not taxable under specific conditions;

·          Guides the user through fringe benefits, allowances and deductions as are permissible by SARS and their impact on PAYE both on a monthly basis as well as at the tax year-end;

·          Calculates Allowance and Fringe Benefit values e.g. car allowance entitlements, the fringe benefit value of a company car etc;

·          Links directly to the income tax ruling on any particular allowance, fringe benefit or deduction;

·          Caters for bonus provisions and tax on bonus provisions;

·          Includes facilities to calculate tax on lump-sum payments;

·          Caters for auto calculation of company pension and medical aid contributions;

·          Caters for set up of “Pensionable / Retirement Funding” income;

·          Company administration capability which caters for the following:

o        Setup and maintenance of fund tables, calculations etc

o        Setup of Package Profiles/templates eg allowable income, funds and deductions etc,  (integrated into PSIberPAY)

o        Links Profiles/Templates to Job Grades or Employees

·          Calculates maximum allowable contributions to Pension and Provident Funds, including arrear pension contributions;

·          Calculates maximum allowable current and arrear contribution to Retirement annuities with and without Pension/Provident fund contributions;

·          Multiple Package Summaries and associated tax implications are simultaneously reflected on screen and are dynamically updated with each entry;

·          Can save multiple structures per employee (i.e. for “what if” type scenarios);

·          Reflects detailed results in online “gross to nett” format for ease of understanding;

·          Provides graphic view of package make up and percentages;

·          Reflects potential Monthly and Annual tax savings;

·          Determines and displays Marginal and Average tax rates;

·          Prints a Pre-formatted letter requesting package restructure;

·          Online import of employee and package information from PSIberPAY;

·          Auto loading of new package back into PSIberPAY;

·          API available, which allows results to be imported into other payroll systems.

 

This tool is an ideal aid for Tax Consultants, Payroll Managers and HR practitioners that provide Package Structuring and Tax Planning advice to their employees and/or clients.