We received our TERS payment and has to pay it to the employees now. Is it true that this amount paid is not subject to PAYE and UIF?
What is the best way to handle this payment?
Good day Leoni
The COVID 19 TERS payment is exempt from Income tax and therefore not included in remuneration and excluded from PAYE, UIF and SDL. Currently, SARS has not stipulated a specific IRP5 code to be used to report the payments on. Until such time that SARS provides clarity on the specific IRP5 code to be used, you may use code 3602 (Other income non-taxable)
In the Sage 300 People application, you will need to create a new Earning definition linked to Earning Type INCEXCL - Other Income - Non-Taxable (3602), please see below example.
