Annuity Payment Type Definition and Uses

Payment Type

Definition

ANN LOAN

A deduction from the annuitant’s regular payment amount and paid to the third party for a loan.  The loan amount and the reducing balance are maintained and can be displayed on the Payslip.

ANNUITY

A regular repeated payment made to an Annuitant.

DEDUCTIONS

A Deo a third party e.g. medical aid contributions, policy premiums, housing loan repayments, etc.  The individual types of deductions can be recorded using the applicable benefit types.

duction from the annuitant’s regular payment amount and paid t

EX GRATIA

Any additional payment made by the Employer to an Annuitant that needs to be recorded separately from the main annuity.

HOUSING SUBSIDY

A payment to an Annuitant on behalf of an employer in respect of a housing loan subsidy.

LOAN SUBSIDY

A payment to an Annuitant in respect of a subsidy for a loan other than a housing loan.

MED AID ER CONT

The employer’s portion of the annuitant’s medical aid contributions paid on behalf of the employer.  The amounts are then recovered from the employer.

MED AID SUBSIDY

The employer’s contribution to the pensioner’s medical aid premiums (medical aid subsidy).

MED SHORTFALL

A once off deduction from the annuitant’s regular payment to recover the difference between the amount paid by the Medical Aid for a medical expense claim and the portion for which the Medical Aid is liable on behalf of the medical aid.

MEDICAL AID

A deduction of medical aid premiums from the annuitant’s regular payment amount and paid to the Medical Aid.

RA CONTRIBUTION

Contributions that an annuitant makes to a retirement annuity that the annuitant wishes to be taken into account for the purposes of calculating the annuitant’s tax.  This is not deducted from the annuitant’s regular payment amount and is only recorded for tax calculation purposes.

TAX INCOME

Any other taxable income that the Annuitant has that the annuitant wants to be taken into account for the purposes of calculating the annuitant’s tax.  This is not included in the net amount paid to the annuitant.

TAX RECOVERY

A once off deduction for an assessed tax underpayment due to a tax authority where the responsibility for the collection or refund of tax is the responsibility of the employer e.g. in Swaziland.

TAX REFUND

A once off refund for an assessed tax overpayment due from a tax authority where the responsibility for the collection or refund of tax is the responsibility of the employer e.g. in Swaziland.  The amount is included in the annuitant’s net payment.

VOUCHER

A non-cash benefit voucher payable to the Annuitant to be taken into account for tax.