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Create and add a Retirement Annuity - Sage Payroll and HR (ZA)
Create and add a Retirement Annuity - Sage Payroll and HR (ZA)

How to process Retirement Annuity in Sage Payroll (South Africa only)

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Written by Thandiwe Khoza
Updated over a year ago

Create and add a Retirement Annuity

Before you start

Before you can add a Retirement Annuity contribution to your employees, you will need to:

  • create an employee


Types of funds

The value of the fringe benefit will be equal to the amount of the company contribution.

Adding Retirement Annuity fund

To create Retirement Annuity contributions for an employee you will first need to add the Retirement Annuity fund to the benefit funds on the maintenance tab.

  1. Select Maintenance from the menu.

  2. Select Benefit Funds.

  3. Click on Add New Benefit Fund on the top right-hand side.

  4. The Fund Type will not be available to select and will be set by default to Defined Contribution.

  5. Enter the Fund Name.

  6. You can enter a clearance number, but this is not mandatory.

  7. Select a Contribution Type from the drop-down as specified by your fund.

  8. Select the Calculation Based on the drop-down and select the appropriate option as specified by your fund.
    (Depending on the option that you selected you will have to fill in different fields, you will need to fill in all the remaining fields based on the information obtained from the fund).

  9. Select Save.


Adding Retirement Annuity fund to employees

  1. You will need to add the Retirement Annuity fund to the employees by selecting Employee from the menu.

  2. Click on the Benefits Fund section on the left-hand side.

  3. Click on the Add a Benefit Fund option on the top right-hand side.

  4. Select the created Retirement Annuity fund from the Benefit Fund drop-down.

  5. Enter a Start Date for the employee on the fund.

  6. The End Date can be left as is if there is no specified end date.

  7. Depending on what you selected when setting up the Retirement Annuity fund you will now need to either enter the percentage of the employee and employer portion or the amount of the employee and employer portion.

  8. Save the changes.

The employee and the employer benefit options that have been setup will automatically be added to this employee's pay run.

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