Does the Employment Tax Incentive (ETI) apply to all employees receiving retirement fund payouts, or is it limited to certain types of employers?

This applies to all PaySpace payroll editions.

ETI applies to employees who receive retirement fund payouts only if the payout comes from an employer-administered retirement fund.

This means that the retirement fund must be a benefit provided by the employer, specifically for employees working in the employer's business (such as a retirement fund administrator or the employer itself). If an employee is not employed by the retirement fund administrator or the employer, they are excluded from ETI.

• Related Articles

• Is there a way to exclude specific employees from Employment Tax Incentive (ETI)?

  Yes. To prevent the company from calculating ETI, enable the "does not qualify for employment tax incentive" checkbox, under the Statutory Fields tab on the Basic Company Information screen. Note! This field has no effect on the Exemptions and Other ...

• How long will the Employment Tax Incentive be in effect?

  The Employment Tax Incentive (ETI) came into effect on 1 January 2014 and will end on 28 February 2029.

• How do I setup ETI?

  ETI on PaySpace is calculated according to the qualifying conditions for ETI as specified in the employment tax incentive act 26 of 2013. To access the employment tax incentive act select the following link: Employment Tax Incentive (ETI) Act. The ...

• Mauritius | How do I ensure the Portable Retirement Gratuity Fund calculates?

  Employers are required to pay a gratuity or a retirement allowance to long-standing employees on their retirement or death as a lump sum. This is a statutory obligation on an employer, and this was previously provided for under s.49 and s.49A of the ...

• How does the system calculate the ETI Period Count?

  The ETI period lasts for 24 qualifying periods. Refer to the SARS Guide to the Employment Tax Incentive guidelines on what criteria need to be met in order for a period to be considered as an ETI qualifying period. PaySpace tracks the qualifying ...