Earning / Deduction Types  {FPRG-6}

Field

Type
&
Length

Description

E/D Code

A4 

Supply a unique code.  It is recommended that for purposes of easy reference: Earnings run from 0001 to 4999, and Deductions run from 5000 to 9999.  The <LIST> command is linked to this field.

ED Description

A30

The description of the Earning or Deduction.

E/D Type

A1

(E)arning or (D)eduction.

Valid From

DD-MON-YYYY

The date from which this E/D code and its details are valid from.  An E/D code’s details may change from time to time and may thus be duplicated and re-defined with the new details. The user must indicate the start date for the re-defined E/D code.

Valid To

DD-MON-YYYY

This field cannot be updated by the user. When an E/D Code is duplicated, the program will insert an end date one-day before the start date of the re-defined E/D code.

Inactive From

DD-MON-YYYY

This E/D is inactive as from the date that is entered here, which means that it may not be used for any transaction that occurs in this pay cycle or later.  Various input screen programs, as well as the salary calculation program, perform the necessary tests against the “C” record in the Run Cycle Control File {FPRM-2} so as to ensure this.

Field

Type
&
Length

Description

Include in STATS Gross

A1

(Y)es or (N)o.
The “STATS Gross Salary” can be described as the total contribution of the institution to the benefit of the employee (i.e. the "Cost to Company").
If an earning should be added into the “Gross Salary”, this indicator is set to “Y”es, otherwise to “N”o. 

It is also possible that a portion of an earning is to be reduced by a deduction. In order to reflect this correctly as part of STATS Gross, the E/D code, by which to reflect the deduction, must be an earning with a negative value and STATS Gross set to (Y)es.

The system defaults to “Y”es for earnings and will always be “N”o for deductions.
Note that the Salary Budgeting System will only include Earnings where this field is (Y)es.

STATS 4.07

N10

The STATS 4.07 Row Code is a classification of the type of Earning.

This field is mandatory for any earning and deduction where the “Gross Salary” field is set to (Y)es

The name of the Row code is displayed. 

The Row codes are pre-defined and the <LIST> command is linked to this field: but only those codes flagged with a “Y” in the list are valid; in other words, row codes for Total Rows and Sub-total Rows may not be entered

GL Cost Centre

A4 + A8

The default General Ledger Allocation (GLA) to which this transaction will be posted. A GLA consists of a Cost Centre and an Account.   Refer to the Overview of the Financial Code Structure Sub-system {FRM-27} and General Ledger Allocations {FCSO-6} for more information on General Ledger Allocations.

Upon creation of a post, it is linked to a GLA, to which all earnings associated with the post will default, if these fields are left blank.  It is, however, possible to override the default GLA for an earning in one of two ways, i.e.:

• The entire GLA can be specified, in which case the calculation program will use it instead of the GLA of the post;
• Only the Account can be specified, in which case the calculation program will combine the Cost Centre of the post's GLA with the Account that is specified here, so as to “build” an effective GLA for this transaction.  

If we assume, then, that the Account specified for the post refers only to the salary component of compensation, the GL Account for other types of compensation (such as bonus, pension, allowances, etc.) can be specified at global level. The calculation program will ensure that the proper cost centre is debited and that the posting will always be done to the proper GLA.

In this screen, it is possible to specify: a cost centre only, an account only, a full GLA, or no GLA at all - for any Earning or Deduction.  But in Global Earning / Deduction Detail {FPRG-7} and Individual Earnings / Deductions {FPRI-2} the following rules apply:

• It is not possible to specify only a Cost Centre for an Earning;
• A complete GLA must be specified for a deduction.  (Most deductions are posted to a Control Account, from which payment is later made).

GL Account Number

A4 + A8

The default General Ledger Allocation (GLA) to which this transaction will be posted. A GLA consists of a Cost Centre and an Account.   Refer to the Overview of the Financial Code Structure Sub-system {FRM-27} and General Ledger Allocations {FCSO-6} for more information on General Ledger Allocations.

Upon creation of a post, it is linked to a GLA, to which all earnings associated with the post will default, if these fields are left blank.  It is, however, possible to override the default GLA for an earning in one of two ways, i.e.:

• The entire GLA can be specified, in which case the calculation program will use it instead of the GLA of the post;
• Only the Account can be specified, in which case the calculation program will combine the Cost Centre of the post's GLA with the Account that is specified here, so as to “build” an effective GLA for this transaction.  

If we assume, then, that the Account specified for the post refers only to the salary component of compensation, the GL Account for other types of compensation (such as bonus, pension, allowances, etc.) can be specified at global level. The calculation program will ensure that the proper cost centre is debited and that the posting will always be done to the proper GLA.

In this screen, it is possible to specify: a cost centre only, an account only, a full GLA, or no GLA at all - for any Earning or Deduction.  But in Global Earning / Deduction Detail {FPRG-7} and Individual Earnings / Deductions {FPRI-2} the following rules apply:

• It is not possible to specify only a Cost Centre for an Earning;
• A complete GLA must be specified for a deduction.  (Most deductions are posted to a Control Account, from which payment is later made).

Retirement Funding

A1

(Y)es or (N)o.
If set to (Y), the income will be considered when calculating pensionable income.

Include for Cost to
Company

A1

(Y)es or (N)o.
If set to (Y), the value of the Earning or Deduction will be included when calculating the Annual Cost to Company in the "Calculations" - tab of Maintain Individual Package {FPRI-9}

ETI Wage Indicator

A1

(Y)es or (N)o

An Indicator used to identify contractual earnings to determine if an employee’s earning fall within the required limit for ETI calculations.

Print on Tax Certificate

A1

(Y)es or (N)o.
This indicator defaults to (N)o.  It can be set to (Y)es (for deductions only) so as to indicate that the deduction represents a donation by the employee to the institution.  Tax Exemption Certificates can then be printed from the Counter System for such cases (refer to the documentation on Print Certificates {FTXO-1}).

Employment Equity Type

A1

Applicable to South African Clients only and used to define the Employment Equity Remuneration Type, required when determining Remuneration for the Department of Labour EEA4 Form {PAOPR3-6}reporting.

A combo box exists with the following values:

F – Fixed / Guaranteed Remuneration

V – Variable Remuneration

Null

See explanation of Remuneration Types below:

‘Fixed Remuneration’ includes all remuneration types that are ‘guaranteed’ such as:   

• Salary (for Wage)
• Housing or accommodation subsidies paid in cash or received as a benefit in kind.
• The private travel portion of the travel allowance and the company car fringe benefit as envisaged by the Fourth and Seventh Schedules of the Income Tax Act for PAYE calculations (the 80% or 20% portion of the full value).

Note that if the employer pays for employees fuel by way of a company petrol card or the companies petrol account, then even though the value of this portion of the travel allowance will vary from month-to-month, it must be allocated to 'fixed' remuneration for employment equity reporting purposes.

• Payments made in cash or in kind that are not excluded from the 'equity remuneration' (see above exclusions)
• Employer-paid contributions to retirement funds, medical schemes or similar benefit funds such as income protection, funeral or death benefit schemes (the value of the employer payment must be used).
• Non-discretionary (or guaranteed) bonuses e.g. the 13th Cheque.

 'Variable' remuneration 

 'Variable remuneration' includes remuneration types that are incentive-based, or are made irregularly, or are paid regularly but their value fluctuates, or are discretionary of nature, including: 

• Short-term incentives that are performance-based such as commission schemes or performance bonuses
• Long-term incentives (a year or longer) that are retention or performance-based such as share schemes
• Lump sum payments that are related to ongoing employment e.g. back pay and leave paid on termination
• Discretionary payments not related to performance or hours of work e.g. retention bonuses
• The taxable fringe benefit value of bursary schemes
• Dividends that are defined to be remuneration by the Fourth Schedule of the Income Tax Act. 

Note that the above concept of 'variable remuneration' for the purpose of the employment equity regulation is not the same as the concept of 'variable remuneration' specified by section 7B of the Income Tax Act.

Field

Type
&
Length

Description

Calculation Method

A1

The default calculation method that will be used for this transaction. Refer to the documentation on Calculation Methods {FPRG-25} for a full discussion of the various calculation methods.  The <LIST> command is linked to this field

Salary Level

N2

Tax Code

N4

The default box on the IRP5 Tax Certificate in which this transaction will be reported. 
An IRP5 total 9999 represents non-IRP5 entries and must be used for all earnings / deductions that should not be reported on the IRP5.  The <LIST> command is linked to this field.

Regular E/D?

A1

(Y)es or (N)o.
(N)o indicates an “Annual Payment” (or “One-time Earning”), e.g. an annual service bonus, which is effectively taxed at marginal rate.  The system defaults to “Y”es for earnings and “N”o for deductions.

Print on Payslip

A1

(Y)es or (N)o.
If this earning / deduction should be printed on the Payslip, this indicator is set to “Y”es, otherwise “N”o.  The system defaults to “Y”. 
Normally all earnings / deductions will be printed, but if an earning is cancelled by a deduction of equal amount, the user may opt not to print it on the payslip.

Include for WCA

A1

(Y)es or (N)o..
If set to (Y)es, this E/D code will be included in the calculation of Workman’s Compensation Assurance contributions, when Calculation Method 9 - Workman's Compensation, is used.

Include for UIF

A1

(Y)es or (N)o
If set to (Y)es, this E/D code will be included for the calculation of Unemployment Insurance Fund contributions, when Calculation Method B - Unemployment Insurance Fund is used.

Skills Levy

A1

(Y)es or (N)o.
If set to (Y)es, this E/D code will be included in the calculation of Skills Levies, when Calculation Method V - Skills Levy is used.

Calculation Fields 1 - 7

Additional information is required in Calculation fields 1 – 7, depending on the Calculation Method {FPRG-25}defined for the ED Code, in order for the transaction to calculate.  Fields required are indicated.

Calculation Formula

A1024

If the Calculation Method is "I - Custom Formula", the formula should be entered in this field.
For more information refer to the relevant section in the on-line help of Calculation Methods {FPRG-25}.

Temporary

A1

(P)ermanent or (T)emporary.
This field will be used as a default when Earnings or Deductions are captured. When set to (T)emporary, the End Date Field, in Global Earning / Deduction Detail {FPRG-7} and Individual Earnings / Deductions {FPRI-2} becomes mandatory.

Start Date

DD-MON-YYYY

The Start Date field in Global Earning / Deduction Detail {FPRG-7} and Individual Earnings / Deductions {FPRI-2} will default to the value in this field. 

End Date

DD-MON-YYYY

The End Date field in Global Earning / Deduction Detail {FPRG-7} and Individual Earnings / Deductions {FPRI-2} will default to the value in this field. 

Low Limit Amount

N15.2

The Low Limit Amount Field in Global Earning / Deduction Detail {FPRG-7} and Individual Earnings / Deductions {FPRI-2} will default to the value in this field.

High Limit Amount

N15.2

The High Limit Amount Field in Global Earning / Deduction Detail {FPRG-7} and Individual Earnings / Deductions {FPRI-2} will default to the value in this field.

Date

System Version

By Whom

Job

Description

08-Jan-2007

v01.0.0.0

Frans

138771

Manual Proofread and Corrections

28-Jan-2007

v01.0.0.0

Charlene van der Schyff

t134067

New Manual Fromat

20-Aug-2008

v01.0.0.0

Magda van der Westhuizen

t152258

Update manual:  Language Editing - Juliet Gillies.

18-Aug-2009

v01.0.0.1

Allie de Nysschen

t159532

Calculate annual cost to company values.

19-Jun-2012

v02.0.0.0

Sister Legwabe

T181348

Add field Formula and new screen on page 2

21-Jun-2018

v04.1.0.0

Sthembile Mdluli

T229006

ADF update

01-Oct-2020

v04.1.0.1

Kerrylee Naidoo

t241338

Enhancement to manual: new development for EE reporting