SAP HCM Localization Update

01 October 2019 - Johannesburg

02 October 2019 - Cape TownUrvasi Debising

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Customer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.

Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service

or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related

document, or to develop or release any functionality mentioned therein.

This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and

functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this

presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided without

a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular

purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP assumes no

responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from

expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,

and they should not be relied upon in making purchasing decisions.

Disclaimer

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Customer

Todays Agenda

➢ HCM Localization Roadmap 2019

➢ Published Legal Changes

➢ Legal Corrections

➢ General

PUBLIC

Urvasi Debising SAP HCM Localization South Africa

October, 2019

HCM Localization Roadmap 2019

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Customer

HCM Localization Roadmap 2019

Legal Changes:

◼ EEA4 - GNR 1057 GG 42627

Legal Corrections:

◼ Commission earner with a fixed percentage tax directive

– SDL calculation

◼ Use of Motor Vehicle / Company Car

– Remuneration calculation

General

SARS E@SYFILE BETA TESTING – Mid-Year Submission

Q3 2019

Legal Changes:

◼ Foreign Employment Income - TLAA 2017

◼ Variable Pay - TLAB 2019

◼ NMW and ETI – TLAB 2019

ECSuccessFactors

◼ EC Rest of Africa - EC SF Mozambique

https://community.successfactors.com/

Planned b1911 Release

Q4 2019

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Customer

Legal Changes

➢ Employment Equity: EEA4 Income Differentials form change 2019 (In Pilot)

➢ New EEA4 form

➢ Employee remuneration as fixed(/EEF) and variable (/EEV)

➢ SAP Note 2687670

➢ NMW & ETI – Coming soon!

➢ National Minimum Wage to be incorporated in the qualifying criteria

➢ Confirming calculation NMW for learners

PUBLIC

Urvasi Debising SAP HCM Localization South Africa

October, 2019

Legal Corrections and Enhancements

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Customer

Legal Corrections

➢ Use of Motor Vehicle / Company Car – Remuneration should include 80% /

20% of the value of company car benefit

▪ For car regulation 8, 9 and C, 80% of this benefit is considered as remuneration and

should be included in SARS code 4582.

▪ SAP Note 2838799

▪ Extract from SARS_PAYE_BRS - PAYE Employer Reconciliation_V18 0 5

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Customer

Legal Corrections

➢ SDL is incorrectly calculated for a commission earner with a fixed

percentage tax directive

When an employee's tax is calculated at a fixed percentage tax rate based on a tax

directive issued by SARS, the Skills Development Levy amount (SDL) is calculated

incorrectly.

When an employee receives a tax directive, system does not calculate the tax

exemptions. The base wage type for SDL (/1SD) is not reduced by the taxable income

deductions. This results in an inflated SDL contribution.

SAP Note 2544789

IT0149 Taxes SA – Commission earner with tax directive

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Customer

General

➢ SAP HCM Pilot Testing Forum

https://jam4.sapjam.com/groups/PDhKDrodye1fhjxn9O6jdu/overview_page/iRnc0yoiN4osjHwypUz

UiI

➢ SARS e@syfile Beta Release for Trade TestingThe South African Revenue Service (SARS) provides our customers an

opportunity to test the updated e@syFile™ Employer build before the formal

release for the Employer Interim Reconciliation during mid-September

submission.

➢ Plan a workshop in November for the Foreign Employment

Income Legislation

➢ Gender for South African Legal Reporting Purposes Should gender be extended for any legal reports and/or any other country-specific

purposes

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Customer

General

➢ SAP EC PERNR

When Employee Central is integrated to SAP PY (on-prem or ECP) should a new PERNR

be generated or should the same PERNR be reused for South Africa.

➢ For national transfers (change of company code(BUKRS) within the same country):

should the PERNR be kept or create a new PERNR? Why?

➢ For rehires (e.g. employee leaves and then comes back, perhaps in the same year to

the same BUKRS): should the PERNR be kept or create a new PERNR? Why?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Customer

BRS 2019 – Delivery information

Pre-requisite (Synchronization SP):

Release Support Package Delivery date

SAP_HR 608 67 09.05.2019

SAP_HR EnhP6.04 D9 09.05.2019

SAP_HR ECC 6.0 H3 09.05.2019

Delivered Support package and CLC

Release Support Package Delivery date

SAP_HR 608 68 13.06.2019

SAP_HR EnhP6.04 D10 13.06.2019

SAP_HR ECC 6.0 H4 13.06.2019

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Customer

BRS 2019 – Notes

SAP

Note

Description Support Package

2768808 IRP5: SARS BRS PAYE

Employer Reconciliation

(September 2019 Release)

ECC 6.08 - 68

ECC 6.04 - D10

ECC 6.00 - H4

2796359 Field enhancements for table

IRP5 Company Level Details

(T5WER)

ECC 6.08 - 68

ECC 6.04 - D10

ECC 6.00 - H4

2820202 IRP5 PDF changes related to the

BRS PAYE Employer

Reconciliation (September 2019

Release)

ECC 6.08 - 71

ECC 6.04 - D12

2828673 IRP5: Corrections for IT3(a) and

IRP5 Certificate

ECC 6.08 - 72

ECC 6.04 - D13

ECC 6.00 - H6

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Customer

© 2016 SAP SE or an SAP affiliate company.

All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an

SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE

(or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional

trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind,

and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or

SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and

services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related

presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated

companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be

changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,

promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties

that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking

statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Urvasi Debising

SAP HCM Localization South Africa

October, 2019

Thank you