Antedated Salary/Pension

If an employee is owed salary or pension that is backdated over previous years of assessment – for example, as the result of a settlement agreement, arbitration award, or court order – SARS will issue a tax directive under code 3623. You can capture this using the Antedated Salary/Pension system item.

👉 How-To Guides

Before you start

• You need a SARS tax directive to complete the directive fields.
• The payslip's period end date must be 1 March 2024 or later – adding this item to an earlier payslip will block finalisation.

How to add the Antedated Salary/Pension item

Individually

1. Go to Employees, and select the relevant employee.
2. Next to the Payslip Inputs heading, click the Add button.
3. Click Antedated Salary/Pension (under Other).
4. Enter the information from the tax directive in the corresponding fields.
5. Select the Income Type.
6. Click Save.

Once you've saved, the payslip will display:

• Antedated Salary/Pension under Income, to the value of the Directive Income Amount.
• Tax on Antedated Salary/Pension under Deduction, to the value of the Amount of Tax to Deduct (from Tax Directive).

In bulk

1. Go to Employees > Bulk Actions.
2. Under Payroll Inputs, click Payslip Inputs.
3. Confirm that your filters are correct (Pay Point, Pay Frequency, and Period).
4. Click the first drop-down, and select Antedated Salary/Pension (under Other).
5. In the Add column, check the boxes for the relevant employees.
6. Enter the directive details and select the Income Type in the corresponding columns.
7. Click Save.

📌 Quick References

Item details

System item name

Antedated Salary/Pension

Category

Other

SARS code

3623

Frequency

Added per payslip (doesn't carry over).

Statutory deductions

Subject to PAYE?

Yes – tax is calculated per the directive.

Subject to SDL?

Depends on income type – yes for salary, no for pension.

Subject to UIF?

Depends on income type – yes for salary, no for pension.

📚 Explanation

Antedated salary/pension is salary or pension that an employee was owed in previous years of assessment but is only being paid now. This typically arises from a settlement agreement, arbitration award, or court order – including out-of-court settlements and Labour Court disputes. Because the payment spans multiple years, the employer must apply for a SARS tax directive under code 3623 to determine the correct amount of PAYE to deduct.

SDL and UIF treatment depends on the nature of the payment: salary is subject to both, while pension is exempt from both.

🔍 FAQs

How does this appear on the payslip?

It shows as two line items: Antedated Salary/Pension under Income for the Directive Income Amount, and Tax on Antedated Salary/Pension under Deduction, which uses the Amount of Tax to Deduct (from Tax Directive).

Why can't I finalise the payslip after adding this item?

The payslip's period end date must be 1 March 2024 or later. Adding this item to a payslip with an earlier date will block finalisation.