All You Need To Know About Retirement Reforms 2016

 2016-12-18 11:19 AM by

Retirement_Reforms_2016

New Legislation has been Introduced

from 1 March 2016 for Retirement Funds

Prior to the reform, employee deductions towards a provident fund was not tax deductible. This has arguably been the biggest change in terms of payroll processing, as it will be tax deductible from 1 March 2016. In addition, the company contribution will also now incur a fringe benefit which will be considered the ‘deemed contribution’. The fringe benefit is taxable, while the deemed contribution will also be tax deductible. 

With regards to employee deductions towards pension fund, that has thus far been tax deductible. This will remain the same. In addition, the company contribution will also now incur a fringe benefit which will be considered the ‘deemed contribution’. The fringe benefit is taxable, while the deemed contribution will also be tax deductible. 

Not too much has changed with Retirement Annuities in Sage Pastel Payroll. The retirement annuity has been working in the prescribed manner for a few years now, and therefore all the necessary transactions have already been created.

Since you may be processing Pension Funds/Provident Funds/Retirement Annuities on Sage Pastel Payroll, Sage Pastel Payroll & HR have compiled the documents below to illustrate how the Retirement Reform will be affecting your payroll processing.

  • Click here to view the document for Pension Funds.
  • Click here to view the document for Provident Funds.
  • Click here to view the document for Retirement Annuities.