Benefits - Other

Benefits are the value of non cash amounts (benefits) that employees receive as part of their remuneration. It could be subsidized use of an asset or the value paid on behalf of the employee. 

Examples include the use of vehicles, housing, education and transport.  These value of these amounts are included on the payslip and in the tax calculation thereby increasing the PAYE amount.

VALUATION OF THE BENEFIT

If an amount is paid on behalf of the employee then this is the amount to be used in valuing the benefit, it is the cost to the employer.  If the benefit is for the use of an asset the valuation of the benefit is less clear and professional advice should be sought.  As a guideline we would suggest that the value should be 7.5% of the market value of the asset or in the case of a housing allowance 12.5% of basic.

School Fees Benefit:

If the school fee benefit is received periodically then set up the Transaction Code as being an irregular earning - 'Benefit - Other (Irregular)'.  This means that the value of the transaction will not be projected for tax purposes.  

If it is received regularly through the year then set up the Transaction Code as 'Benefit - Other (Regular)'.  To set up the School Fees Benefit:

- Create a new transaction code for the School Fees Benefit

- When it asks you to 'Select the 'Category' suitable for the type of transaction' select either 'Benefit - Other (Irregular)' or 'Benefit - Other (Regular)'.

For more information about the tax aspects of School Fee benefits see this link. For more information about how to set up the benefit Transaction Code see this link.

Loan Benefit: 

For more information about the tax aspects of Loan benefits see this link. For more information about how to set up the benefit Transaction Code see this link. 

Vehicle Benefit:

For more information about the tax aspects of Vehicle benefits see this link.  For more information about how to set up the benefit Transaction Code see this link.

Housing Benefit:

For more information about the tax aspects of Housing benefits see this link.  For more information about how to set up the benefit Transaction Code see this link.

CUSHIONING

If you would like to cushion the employee from the effect of tax on the benefit then an allowance can be set up to automatically calculate a value which compensates for the tax on the benefit and the allowance itself.  For more information on how to set this up see the heading 'Allowance - Benefit' under this link.