South Africa | What is the function of the "Is this employee retired?" tick on the Basic Profile screen?
This feature is available on all PaySpace editions.
This option is used for the Pension/Provident/Retirement Annuity calculation for legally retired employees. No fringe benefit is applicable if the employer contributes towards a retirement fund on behalf of an:
- An employee who is retired from the fund, or
- In respect of dependents or nominees of a deceased member of the fund.
If this field is ticked and an employer contributes to any of these funds on the employee's behalf, no fringe benefit will be calculated on the payslip.
The following tax codes will then be used:
The following tax codes will then be used:
- 4585 - The pension fund contribution paid by the employer of an employee who has retired from the fund
- 4586 - The provident fund contribution paid by the employer of an employee who has retired from the fund.
Important: If the employee retires from the fund in the middle of the tax year, the user should terminate the current record and add a new record (reinstate starting a new record). On the new record, the user can then activate this field.
Navigate > Employee > Basic Information > Basic Profile > Employee Details
Important! This tick does not affect the Medical Aid company contribution.Related Articles
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