Benefits - Value

All benefits received, as a result of employment, are taxable at the value of the benefit to the employee.   Enter the value of the benefit in Payslip Input.  This will increase the PAYE amount deducted and reduce the Net Paid amount.

LOAN BENEFIT

A loan benefit occurs if the interest charged on the loan is less than the LIBOR rate plus 5%. The benefit is taken to be the difference in these values. To setup, Libor Rates see FAQ topic 'Loans - Libor Rates'

LIBOR: London Inter Bank Offered Rate 

VEHICLE BENEFIT

The use of a motor vehicle is deemed a benefit.  The value of the benefit is determined by the tax department each year and depends on the engine capacity of the vehicle, such as:

Size of Vehicle        

0 - 1500 cc              

1500 - 2000              

2001 - 3000           

3000+                       

HOUSING BENEFIT

The value to the employee of a housing benefit needs to be determined on a case-to-case basis.  Professional advice or a directive from ZIMRA should be sought.

OTHER BENEFITS

The amount of the benefit is taken as the value to the employee. 

PROCESSING A BENEFIT

To process, the value of a benefit create a Transaction Code using the 'Benefit' category.  When creating the benefit Transaction Code enter the value of the benefit if the value of the benefit is a set amount.  If the value of the benefit varies from employee to employee then set the Transaction Code to allow 'Manual Edit'. 

When benefits are included on the payslip they affect the PAYE.  The Net Paid is affected by the change in PAYE.