How do I configure the Travel Allowance component, taxed at 100%?

How do I configure the Travel Allowance component, taxed at 100%?

This applies to all PaySpace editions.

From 1 March 2024, the 100% taxable options on the following components will output an error message 'Travel tax cannot be 100% for this tax year' if selected:
  1. Company Car component - Use of motor vehicle acquired by employer NOT via operating lease. (tax code: 3802)
  2. Travel Business Usage Component (tax code: 0000)
  3. If a closed run is reopened for February 2024 and 100% is selected, 100% will still be calculated for February 2024.
  4. The employees that currently have this option selected, will be moved to the 80% option.
According to the definition of remuneration as defined in paragraph 1 of the Fourth Schedule:
  1. Only 80% of a travel allowance (which includes a fuel card when used with a private vehicle) should be included in remuneration unless the employer is satisfied that at least 80 percent of the use of the private motor vehicle for the year of assessment will be for business purposes, then only 20 per cent of the amount of such allowance or advance must be included, and
  2. Only 80% of the right of use of a motor vehicle should be included in remuneration unless the employer is satisfied that at least 80 per cent of the use of the motor vehicle for the year of assessment will be for business purposes, then only 20 per cent of the amount of such allowance or advance must be included.
IRP5 code 4582 reports the 'remuneration portion' of a travel allowance/fuel card and right of use of motor vehicle fringe benefit to apply the correct limits when calculating the tax deduction portion for contributions towards a retirement fund upon personal income tax assessment. According to the latest SARS PAYE BRS, code 4582 may not be less than 20% or more than 80% of the sum of 3701 + 3802 + 3816.

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