Work Injury Compensation Act: Salary Threshold Change

The Working Injury Compensation Act 2019 or WICA was introduced by the Government to provide a more straightforward way for employees to claim compensation for work-related injuries. 

Under the Act, unless exempt, employers are required to take out insurance with a Government approved designated insurer. This insurance needs to cover things such as medical expenses, permanent incapacity and death due to work-related injuries. 

The minimum and maximum compensation limits as of 1 January 2020 are as follows:

Insurance typeMinimum thresholdMaximum threshold
Medical expensesN/A$45 000 (accrued within the year following the date of accident)
Total permanent incapacity$97 000$289 000
Death$76 000$225 000

Employee medical leave wages and light duties due to work-related injuries are calculated as a percentage of an employee’s average monthly earnings, with the percentage applied being dependent on the amount of time since the accident occurred. More information on this can be found here.

Non-Manual Worker Exclusion

Employees that are not employed to carry out manual labour can be excluded from WICA if their salary is over a certain threshold. From April 2021 the salary threshold for exclusion is being increased from $2 100 to $2 600 per month

Salary is defined by the Employment Act, relating to the remuneration of your employee. This excludes things such as overtime pay, bonuses, annual wage supplements, productivity incentives and allowances.

We would recommend that you check if you have employees previously excluded from WICA who you now need to take out insurance for.

We hope the above has proved useful to you. If you have any questions on how this relates to SimplePay, you can contact our team at [email protected]

Equally, if you are not yet a client of SimplePay but would like to be, or if you’d like to know how we can take the effort out of filing and calculating payroll, get in contact with us or visit our website:

Keep well and stay safe.

Team SimplePay

New Feature: Bulk Leave Import

We’ve had several requests asking for a way for payroll administrators and leave admins to record leave in bulk and we’re delighted to let you know that this feature is now here! This means that there are now 3 ways for leave to be captured on the system:

  • Employees can request leave via self-service or our mobile app which then gets captured once approved by a leave approver.
  • Payroll administrators and leave admins can record leave for individual employees via an employee’s profile.
  • Payroll administrators and leave admins can download an Excel file, complete it with the relevant leave days and upload the file into SimplePay.

For more information on how to use this new feature, head to our help page.

We’re continuing our mission to revolutionise payroll, and in the process make SimplePay the preferred payroll software provider for small and medium sized businesses. We hope that with the additional method for recording leave, every user now has an option that meets their needs.

If you have any queries on how to use the system or any suggestions on how we can better serve your needs, please reach out to us.

Team SimplePay

Legal Name Format Customisation

To help better meet your payroll administrative needs, we’ve recently added a feature that gives you the freedom to customise the way that each employee’s names are displayed. This means that you can now ensure that each employee’s name aligns with their name on their identity card.

You can choose between the following formatting options:

  • First name Last name
  • Last name First name
  • Single name

The option you choose will directly link to the way the name is shown on all payslips and IR8A’s for that employee. Please note that if you use GIRO export files, you must use the “Single name” formatting option. In addition, where culture conventions make it difficult to distinguish between first and last names, instead of entering a “.”, “*” or any other placeholder in the Last Name field, the “Single Name” legal name format should be selected.

Please note that this feature needs to be selected for each individual employee. You can change the name display individually or in bulk.

To do this individually:

  • Go to an employee’s profile and select Edit Info > Basic Info.
  • Select the Legal name format option from the drop-drown menu.
  • Should you select the Single name field, only one name field will be available.
  • Once you are happy with the information on the Basic Info screen, click Save.

To update this information in bulk:

  • Go to Employees > Bulk Actions > Essentials
  • Select the Legal name format option from the drop-drown menu.
  • Should you select the Single name field, only one name field will be available.
  • Once you are happy with the information on the Basic Info screen, click Save.

For more information on the Basic Info for employees, head to this help page. If you have any further queries, do not hesitate to reach out to our support team.

Team SimplePay

Bulk Leave Adjustments and Off-In-Lieu Leave

Our mission at SimplePay is two fold – to make payroll simply, while also keeping you compliant with local legislation. We therefore pride ourselves in giving you a payroll solution that is not generic, but rather tailored to the local market. So when you voiced your need for a better way to manage off-in-lieu leave, we jumped right on it.

We now have a bulk leave adjustments option that allows you to record leave adjustments for any leave type for multiple employees at once. This is particularly useful for off-in-lieu leave, which should only accrue once an employee works on a public holiday. We’ve also developed an option to make the leave day(s) in the leave adjustment expire after a specified period; this is a free-of charge opt-in-feature, which means that you’ll need to contact our support team to enable it for you.

For guidance on how to handle off-in-lieu leave, please see this help page. For more information on recording leave adjustments in bulk, see this page.

We hope this new functionality makes your lives easier. Please do not hesitate to reach out if you need assistance or if you have further suggestions on improving this feature – we’re always listening!

Team SimplePay

New Feature: Custom Beneficiaries

We’re delighted to announce a new feature for beneficiaries. A beneficiary is a third party who needs to be paid by the employer as a result of a payslip item for an employee. For example, if you offer a medical aid benefit or a retirement fund benefit (such as pension), the beneficiary is the institution offering the medical aid fund or retirement fund. You can now access a beneficiary report with the total amount owed to beneficiaries.

To add a beneficiary to the system:

  • Go to Settings > Beneficiaries and select Add under Custom Beneficiary
  • Enter the details for your beneficiary and click Save

Once you have added your custom beneficiary, you can link it to the payroll item created under custom items:

  • Go to Settings > Custom Items and select the custom item (or click Add to create one – for more information on setting up custom items, head to our help page here.)
  • Tick the checkbox Link to beneficiary
  • Select the Beneficiary Type:
    • ‘Fixed’ should be selected if there is only one beneficiary for this custom item for all employees. You will then need to select the beneficiary from the dropdown list.
    • ‘Different on every employee’ should be selected if different employees have different beneficiaries for this custom item. If you select this option, the beneficiary will need to be specified when adding the custom item to the employee’s payslip.
  • Then click Save

Once you have set up the custom item, you can then add it to payslips as per normal by heading to the employee’s profile and then clicking on Add next to Regular Inputs or Payslip Inputs, depending on how it was set up.

To access the beneficiaries report, you’ll need to create a pay run. The beneficiaries report appears in the bottom right-hand corner of a completed pay run (the accounting report appears in the bottom left hand corner).

We hope you love this new feature and that it’ll make your payroll processing more efficient.

Team SimplePay