Where housing or car is provided by an employer for an Employee, these are additional taxable benefits in addition to annual package. This must be setup as an allowance(taxable benefit) and a deduction at the same time. The codes are specific and for report correctness and inclusiveness in mandatory reports, for instance the Statement of Earnings, the setup of these is critical.
Setting up an allowance as Taxable benefit
Go to Setup, Payroll, Alowances, Maintain.
There are 3 codes for housing.
HLC: A1 Housing Low Cost, K160 fixed per fortnight.
HMC: A1 Housing Medium Cost, K400 fixed per fortnight.
HHC: A1 Housing High Cost, K700 fixed per fortnight.
Enter HLC as Code.
In Description enter name: A1 Housing Medium Cost
Select Value as Type.
The Tax Status is Before Tax.
Choose Taxable Benefit from Tax Certificate Code list.
Enter 160 in the Amount Field.
Select Fixed.
Tick Show Rate on Pay advice.
Leave all other options as is.
Accept F9.
Setting up a housing deduction
Go to Setup, Payroll, Deductions, Maintain.
There are 3 codes for housing matching the Allowances.
HLC: A1 Housing Low Cost, K160 fixed per fortnight.
HMC: A1 Housing Medium Cost, K400 fixed per fortnight.
HHC: A1 Housing High Cost, K700 fixed per fortnight.
Enter HLC as Code.
In Description enter A1 Housing Low Cost
Select Value as Type.
Tax Status is After Tax.
Enter 0 as Tax Certificate Code.
Enter 160 in the Amount Field.
Select Fixed.
Tick Show Rate on Pay advice.
Leave all other options as is.
Click Accept F9.
Setting up car allowances and deductions
Car Allowances and deductions are setup the same way as Housing.
CWF Car With Fuel K125 Fixed per fortnight.
CWOF Car WithOut Fuel K95 Per fortnight.
Adding allowances and deductions to an employees Standard Pay
Go to Payroll, Masterfiles, Employee Standard Pays, Maintain.
Select Employee.
In Function, choose Modify Pay.
Click Accept F9.
ArrowDown to 2nd Line in standard pay, to insert the additional Lines.
Insert Mode, New Line Type choose Allowance.
In Code, select HLC or correct housing allowance code for the employee.
Click Accept F9.
Insert Mode, New Line Type choose Deduction.
In Code, select HLC or correct housing deduction code, or the car allowance code for the employee.
Click Accept F9.
Click Finish Esc.
Choose Yes to save changes done to Employee Standard Pay.