Most frequent questions and answers

An employee is generally paid a Basic Salary and many are given allowances or earnings for things like Overtime or Bonus. All of these amounts are added up to give the Gross Salary. Benefits are non-cash amounts that employees have not earned but are deemed to have been given to him or her in other ways. Company Cars, for example, are a Benefit. The amount of the benefit should be entered into the Monetary details for inclusion in the total used for calculating PAYE. 

It is highly recommended that these are updated regularly as there are always changes to the Personal Details. Information like new kids, a change of address or new Bank account need to be amended from time to time. There is a form that can be printed in the Basic Masterfile Screen with most of these fields that you can give to each member of staff to update and submit to the Payroll Operator

Most reports are printed in employee number order within pay Point. So, even though you can have alphabetic employee numbers we recommend that you stick to numeric. Set them up in alphabetic Surname order and allocate numbers in ascending order with increments of 10.

Medical Aid contributions can either be calculated automatically or entered manually for the employee and his immediate dependents. PAYE will be reduced, as with medical expenses, for all contributions for the employee, one wife and all his registered children.

Any shortfalls on amounts invoiced for visits to the Doctor, Dentist, Hospital or Clinic by the Employee, the Spouse and or children can be submitted to the Wages clerk. These should be meticulously checked and recorded by your admin department ensuring that confidentiality is maintained at all times. 50% of these amounts will be taken off of the Calculated PAYE thereby reducing his tax and increasing the Employee’s Net Pay.

If an Employee has more than one source of income or if he starts with a company in February or later, he is deemed by the taxman to have had Other Employment in the given year. He or she should, therefore, submit a tax return at the end of the year for Zimra to assess any shortfall or over payment of PAYE. There is a flag in the Financial Details screen titled “Other Job this Year”. Employees that were with the firm from the start of the year will have this flag set to No whilst any new staff will have this flag default to Yes. When set to Yes, Payrite works out the PAYE using the current pay only as was done with PAYE calculations prior to the implementation of FDS.