Posts tagged [Retirement Reform]


  • Provident Fund Reform Postponed

    Retirement_Fund_Reform_Savings_Planning 

    "Government is forced to backpedal on provisions in the Tax Amendment Act that compel South Africans to put two-thirds of their provident fund savings in a retirement annuity.

    The provision meant that retirees would be allowed to take only one-third in cash, while currently they’re entitled to the full amount." - The Herald Port Elizabeth.   To Read More See Below Links To Articles

    The Herald Live:

    http://www.heraldlive.co.za/zuma-government-backpedals-provident-fund-law/

    Business Day Live:

    http://www.bdlive.co.za/national/2016/02/19/provident-fund-fight-drags-on

    Read More  

  • All You Need To Know About Retirement Reforms 2016

    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.

    Read More