VIP Payroll

The following tax directive application forms are available:IRP3(a) – Gratuities paid by the employer,IRP3(b) – Hardship directives – tax deducted at a fixed percentage,IRP3(c) – Hardship directives – a fixed amount of tax to be deducted,IRP3(d) – Hardship directives for deemed remuneration of directors, andForm A to D – various lump sum benefits payable by funds.Tax according to directives are not “final” tax, and is recalculated taking intoconsideration total income on assessment.3. ALLOWANCES, ADVANCES, REIMBURSEMENTS &OTHER REMUNERATION3.1 AllowanceAn allowance is granted to an employee where the employer is certain thatbusiness-related expenses will be incurred by the employee, but where theemployee does not have to account for expenses to the employer. The valueof the allowance is based on the expected business-related expenditure.3.2 AdvanceAn advance is paid in lieu of business expenses an employee will incur andfor which the employee must provide proof to the employer. The value ofthe allowance is based on the expected business-related expenditure. Thedifference between the advance and the actual expense will be recovered byeither the employer or the employee.3.3 ReimbursementA reimbursement is a repayment by the employer to the employee forbusiness-related expenditure incurred by the employee on instruction by theemployer and is subject to proof of the expenditure.3.4 Travel Allowance (Section 8(1)(b))A travel allowance is granted to an employee in respect of travelling expensesfor business purposes. This is a fixed allowance that the employee receivesevery pay period, regardless of actual business kilometres travelled in thatperiod.Payroll Pocket Guide 2013|2014© 2013 Sage VIP15