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Correct negative YTD values on IRP5 codes for leave paid out

Created on  | Last modified on 

Summary

Sage VIP Classic and Sage VIP Premier validate for negative YTD values on IRP5 codes each processing period. SARS doesn't allow tax certificates that include negative IRP5 values.

Description

Employee tax certificates must not include negative YTD values on any IRP5 code. SARS rejects submissions that contain negative values.
The payroll system validates YTD values when you start a new period and flags any negative IRP5 amounts.
If the system detects negative values, it generates a report before the new period starts. You can continue the period without immediate correction.

TIP:

We recommend completing all corrections before the relevant SARS submission or before the tax year ends, whichever comes first.

Follow the guidance below to identify and correct negative YTD IRP5 values.

Why negative year-to-date values occur

A common scenario occurs when an employee leaves with a negative annual leave balance.

  • You process the negative leave on the Leave Paid Out earning line with IRP5 code 3605
  • The employee has no other income using IRP5 code 3605
  • The YTD value for code 3605 becomes negative

Recommended correction approach

When an employee leaves with a negative leave balance and insufficient IRP5 code 3605 income:
  • Process the negative value on the Unpaid Leave earning line using IRP5 code 3601
  • Avoid using the Leave Paid Out earning line for negative values
This approach ensures the combined year-to-date value for IRP5 code 3601 remains positive.
To correct the negative values on the IRP5 code, you have two methods to follow: