South Africa | Arbitration Award Components

In South Africa there are two arbitration award components with the same tax code "3608". It should be noted that these components do not function the same. These components are Arbitration Award(Loss of Income) and Arbitration Award Taxable. 

The two components operate differently in that the "Arbitration award (Loss of Income)" is subject to UIF and SDL, whereas the "Arbitration award taxable" is not. 

1. Arbitration Award(Loss of Income)

Before this component can be used on an employee's payslip, it needs to be manually added. To add the component, navigate as shown below:
Config> Payroll> Payroll Config> Payroll Components

Click on the link "If you would like to add a new component click here"

Search for the component as shown below and click on it to add it.

            

Once the component is added users will be able to select it on the lumpsum directive screen tax code drop-down.

2. Arbitration Award Taxable

This component is automatically added to the list of components on the lump sum directive screen. Unlike the "Arbitration Award (Loss of Income)," it does not need to be manually added.

NB: When using this component users need to ensure that a UIF exemption is selected. This is only an Arbitration Award is processed for the period on the employee basic profile screen, to select a UIF exemption navigate as shown below:
Employee> Basic Information> Basic Profile> Exemptions and Other

      

When users navigate to the lumpsum directive screen after the Arbitration award(Loss of Income) component has been added, both components will be available for selection.

      

NB: This is available on all Payspace Payroll editions.

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