Step 1: Create the Retirement Fund

On the Navigation pane:

Expand   Parameters

Expand   Payroll

Double-click on  Retirement Fund

Select   New

 

 

Note: If the N/A Retirement Fund option is selected This fund cannot be used for a South African tax country.

 

Step 2: Link Retirement Fund

On the Navigation pane:

Expand   Parameters

Expand   Payroll

Double-click on  Company Retirement Fund

Select   New

 

 

Step 3: Create the Deduction Definition

On the Navigation pane:

Expand   Company Management

Expand   Payroll Definitions

Double-click on  Deductions

Select   New

 

The following fields have been made mandatory:

•          Linked Company Contribution

 

 

If this field is not completed, you will not be able to save the definition. You will receive the following message:

 

You can either select a relevant company contribution from the dropdown or select the button to create the company contribution.

Step 4: Create the Company Contribution

The following fields have been made mandatory:

•          Company Retirement Fund

•          Linked Deduction

 

The deduction definition will automatically be linked, if the deduction is created first.

 

 

After the definition has been saved the following fields will become read-only fields can cannot be changed.

•          Deduction Type

•          Company Contribution Type

•          Linked Company Contribution

•          Company Retirement Fund

 

System Health Check

A new health check has been added to the landing page, this will indicate if any of the above mentioned mandatory fields is not completed.

 

 

Please correct your setups by linking all mandatory fields on the deduction and company contribution definitions.

Note: Sage 300 People support will not be able to assist with any Retirement Reform setup. 

Basic Alert

A Basic Alert has been created to warn you if the fringe benefit calculated for the employee’s retirement fund is R0.00.

 

According to paragraph 12D(6) of the Seventh Schedule, the fringe benefit value for employer contributions towards a retirement fund on behalf of the employee can only be zero rated in two scenarios, namely:

•          If the employer contributes towards the retirement fund for the benefit of a member of that fund who has retired from that fund, or

•          If the employer contributes towards the retirement fund in respect of the dependents or nominees of a deceased member of that fund.

 

 

An incorrect retirement fund fringe benefit may occur if the RFI calculation is incorrect or if an incorrect rate factor is entered.

 

Fringe Benefit

The following columns on the employees’ Retirement Reform Fringe Benefit Payslip Definitions screen will become read only fields:

•          Fixed

•          Recurrence Amount

•          Recurrence Type

 

Any values in these fields resulted in incorrect Fringe Benefit calculations as the Sage 300 People ignores the values and stops the system from calculating any retirement fringe benefit values.

Note: If there is a value in the Fixed or Recurrence Amount column this will be cleared when the 18.1.3.0 update is loaded.