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
South Africa | Retirement Fund DC, DB & Hybrid Fund Fringe Benefit Calculation
The fringe benefit component will calculate based on the company contribution to the Pension/Provident Fund. DC Fund: Fringe Benefit = Pension Employer Contribution DB/Hybrid Fund: Fringe Benefit = (A X B) - C A: Category factor provided by the fund ...What is the purpose of the "is this employee retired?" checkbox 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 ...How do I add a personal retirement annuity to an employee's record?
This feature is available on all PaySpace editions. A Retirement Annuity premium paid in the employee's personal capacity can be recorded on their payslip. Step 1: Create the "Retirement Annuity Personal" component on company level. Navigate > ...Payroll Funds Setup | Pension and Provident Fund Setup
About A variety of Pension and Provident Funds are available to choose from on the Pension and Provident Setup Screen. You can select and configure the relevant funds according to the company’s requirements. The Pension or Provident Fund needs to be ...How do I add a retirement annuity deduction?
This feature is available on all PaySpace editions. A retirement annuity component has to be created on company level, before it can be added to an employee/s. Navigate > Configuration > Payroll > Payroll Config > Payroll Components Step 1: Search ...