SimplePay has a built-in item for amounts received or accrued from the vesting of any equity instrument. The allowance is reported under code 3718 for local services income, and code 3768 for foreign services income.
You should contact SARS to obtain a tax directive, which will provide details about how the Gain on Vesting of Equity Instruments should be taxed.
To add the Gain on Vesting of Equity Instruments item:
- Go to Employees and select the relevant employee.
- Click on Add (next to Payslip Inputs).
- Select Gain on Vesting of Equity Instruments under Allowance.
Enter the following information:
- The Amount
- The Amount of tax to deduct (from tax directive)
- The Directive Number as found on the document obtained from SARS.
- Click Save.