New NSSA Rates effective 1 June 2013
Increased NSSA rates have been gazetted and are effective from 1 June 2013. The contribution rates have increased to 3.5% (from 3.0%) for both the employee and employer. The Maximum Insurable Earning has also increased, to a monthly threshold of $700 (from $200). This means that the maximum monthly contribution has increased from $6 to $24.50. The calculated maximum contributions for weekly, bi-monthly, fortnightly and monthly payrolls are:
|Fortnightly||($700 * 12/ 26)*3.5%||$11.31|
|Bi – monthly||($700 * 12/24) * 3.5%||$12.25|
|Weekly wages||($700 * 12/52) * 3.5%||$5.654|
To effect the changes in Belina PayrollHR, follow the steps below in the first pay period of June 2013.
- Open the payroll
- Go to the ‘Edit’ then ‘Transaction Codes’ menu option
- Select the NSSA Transaction Code
- Click on ‘Change’ or double click the NSSA Code:
- Change the ‘Percentage’ contribution from 3% to 3.5% for both the Employee and the Employer
- Change the ‘Threshold Limit’ to $24.50 on a monthly payroll, or the respective new threshold limits for weekly, fortnightly and bi-monthly payrolls (please refer to table above).
- Click ‘OK’ to save.
If you are also making use of the NSSA Report in Belina, then you will need to also make the following amendments to setup the new limits for the periods from 1 June 2013 onwards:
- Go to the “View” -> “Third Parties” -> “Pension” -> “NSSA”
- The box below will appear.
- Make sure that the “Gross Earnings Classified” checkbox is ticked
- Click on the “NSSA Limits” button
- Then click on “Change” and then “Change Range of Periods”
- The “Period From” and “Period To” refer to the periods for which you wish to change the NSSA limits to a different amount than was previously set. If you are running a monthly payroll, then you would normally select period 2013/06 as the “Period From” and 2013/12 as the “Period To” (this would assume that you have no bonus periods in the year – if you have inserted bonus periods before the current period then you would have to look at the period which commences on 1 June 2013 and select that accordingly.
- Change the “Period Limit” to $700 on a monthly payroll, or the respective new insurable earnings limit on weekly, fortnightly and bi-monthly payrolls (See table below of the new NSSA maximum insurable earnings limits for payrolls which are not monthly)
- Click “OK” to save
- Click “Close” to close window
- Run a calculation routine and then you can view the report with the new settings and date ranges updated
New NSSA Maximum Insurable Earnings Limits
|Fortnightly||($700 * 12/ 26)||$323.77|
|Bi – monthly||($700 * 12/24)||$350|
|Weekly wages||($700 * 12/52)||$161.54|
You will need to repeat this procedure in each payroll if you have more than one payroll.
That is all that is needed! You can now process as normal. The changes will be correctly reflected in Payslip Input with the new rates being taken into account.
If you require any further assistance please, feel free to phone our offices where our consultants will be more than happy to assist you.
As a Zimbabwean company, developing and supporting a 100% Zimbabwean payroll software, we are best able to respond to changes that occur here. Our aim has always been to provide the best service possible to our clients.