Payroll Processing > System Items – Income > Loss of Income Policy Payout

Non-taxable income items are not very common. However, the income in respect of payments received from a loss of income policy might be non-taxable.

SimplePay has a built-in item to accommodate the special tax and reporting requirements related to regular non-taxable amounts received from a loss of income policy. This income will be reported under code 3602.

To add such non-taxable income from a loss of income policy:

  • Go to Employees and select the relevant employee.
  • Click on Add next to Regular Inputs.
  • Click on Loss of Income Policy Payout.
  • Enter the Fixed Amount that will be paid to the employee every pay period.
  • Click Save.
You are using the help system of SimplePay, a payroll system that simplifies the payroll process. Designed just for South Africa, it's a fully online solution. Read more.