How do I add the Free or Cheap Accommodation Fringe Benefit (New) component?
This feature is available on all PaySpace editions.
Free or Cheap Accommodation refers to providing an employee with residential accommodation, whether at no cost or for a lower amount than its determined rental value, results in a taxable fringe benefit. This accommodation can be furnished or unfurnished and may include or exclude fuel, electricity, or water
The "Free or Cheap Accommodation Fringe Benefit (New)" component has to be configured on company level before it can be linked to an employee/s.
Step 1: Search for and create the "Free or Cheap Accommodation Fringe Benefit (New)" component.
Navigate > Configuration > Payroll > Payroll Config > Payroll Components
Step 2: Add and complete the fields on the Accommodation Fringe Benefit to the employee's Recurring Payroll Components screen.
Navigate > Employee > Payroll Processing > Recurring Payroll Components > Fringe Benefit
Note! The Remuneration Proxy field and the Employers Accommodation Expenditure need to be completed for the previous year of assessment in order for the component to pull through on the employees' payslip every month.
Related FAQ
No taxable value is placed on accommodation if:
- The employer provides the employee with accommodation away from their usual place of residence which is in South Africa for work-related duties.
- The employer provides the employee with accommodation away from their usual place of residence which is outside South Africa for a period not exceeding 2 years from the date or arrival of that employee in South Africa for the purposes of work related duties.
This will not apply if:
- The employee was present in South Africa for a period exceeding 90 days during the preceding tax year, or
- To the extent that the taxable value does not exceed R25 000 per month. If it exceeds R25 000, the excess will be taxable.
- The employer provides the employee with accommodation away from their usual place of residence which is outside South Africa during in the tax year and the employee is physically present in South Africa for less than 90 days in the tax year
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