Customer Checklist Retirement Reforms

Part 1: Setup retirement fund

• Define all the retirement funds in your organisation on the Retirement Fund screen.

   

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Part 2: Setup Payroll Definitions 

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• For the retirement reform calculations to be handled correctly, a deduction, company contribution and fridge benefit payroll definitions must exist in the People application. Ensure that the deduction, company contribution and fringe benefit definitions are linked to the applicable pay run(s).

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  NOTE:

  The Company Retirement Fund field is mandatory for a Defined Contribution defined Benefit and a Hybrid fund.

    

   

Part 3: Apply the changes 

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• It is advisable to do a recalculation for the company rule once you have made the necessary changes. The recalculation will update the employee’s payslips if any of the payroll definitions were flagged as mandatory.

   

• If you make use of remuneration structures, you have to link the deductions and company contributions to ensure that the employees’ payslips are updated correctly. If the fringe benefit is not mandatory this will have to be linked on the remuneration structure as well to ensure that the tax is calculated correctly.

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• Ensure that GL account numbers are updated if new definitions were loaded.

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Part 4: Employee linking 

• If you make use of remuneration structures,

  • The employee and/or employer contribute to a defined benefit or a hybrid fund you must define the retirement fund information on the Retirement Funds screen.

    Retired: If the employee is retired according to the fund rules no calculations must be done for the employee. Check this checkbox to indicate that an employee is retired according to fund rules.

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  You can batch the RFI and Fringe Benefit Adjustment fields on the employees’ Payslip Detail > Tax Total Retirement Funds screen.

   

• Ensure that GL account numbers are updated if new definitions were loaded.

Part 5: Backdated Adjustment

• Where the retirement fund setup or fund factor was defined incorrectly, and the employees’ fringe benefit amounts should be recalculated you can apply the Force YTD option.

  Recalculate an Employee

  If you made changes to the employee’s retirement fund or fund factor and the changes must be applicable from the start of the tax year you can apply the Force YTD option on the employee’s payslip.

  To recalculate the changes for all the employees in a company rule select the Force Average YTD option for the Live period.

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   RFI and Fringe Benefit Adjustment Batch

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