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Add a new earning definition

Created on  | Last modified on 

Summary

Follow the steps to create a new earning line definition in a South African company on Sage VIP Classic and Sage VIP Premier.

Description

The Earning Definition screen allows you to set up different types of earnings for your company. Examples include overtime, travel allowances, commission and annual bonuses.

NOTE:

The layout of the definition screen differs between tax countries.

Resolution

  1. Access your company from the Company Listing screen.
  2. From the Main Menu, go to Payroll, then select Definitions.
  3. Choose Earning Definitions.
  4. Click Change Mode.
  5. Click any open line to add a new definition.
  6. Complete all required fields:
    • Enter a Short Description (seven characters, letters or numbers, must be unique).
    • Enter an English Earning Description (15 characters).
    • Enter an Alternate Language Description (15 characters).
    • Select Type of Earning.
    • Select When Taxable (how the system taxes the earning).
    • Select if included for BCEA (Basic Conditions of Employment Act, South Africa only).
    • Select if included for RFI (Retirement Funding Income).
    • Select the IRP5 Code (South African Revenue Service source code)
    • Select if included for Incl SDL (Skills Development Levy calculation)
  7. Click Close.
  8. When prompted to recalculate, select Yes.

TIP:

For assistance with setting up definitions, contact your Sage Business Partner. Refer to the latest payroll summary of your tax country for guidance.


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