Retrenchment and leave pay

Question

Good day. I need some assistance with the payslip. 
 The employee was retrenched and a lump sum and leave pay were paid out to the employee. A tax directive was obtained from SARS for the lump sum. My question is how to deal with the leave pay. Should I issue a payslip reflecting the leave pay and deduct the UIF payment or should I ignore it? Kindly advise.

Shazi · Accepted Answer

Good day, 
 Have you already processed the Lump sum on the Payslip. You will need to load the Leave on the Leave Paid out Line. Leave Paid out is Taxable and you need to Pay UIF on it. To process the Leave Paid out, please follow below steps: - Go to the employee's payslip 
 - click on earnings + sign 
 - select 'leave paid out' and enter the days - the system will then automatically calculate the amount. 
 - thereafter make the leave balances zero on employee leave details screen by deducting the days from the opening balance column in order for the closing balance column to be zero Regards, Luanne P.S. Please could you kindly verify and let us know that this solution worked. You can do this by marking this reply as a Verified answer so that the rest of the Community can benefit from this.

Sage Payroll

Retrenchment and leave pay

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