SOURCE CODE DESCRIPTIONS IRP5 code 4118 – Validation Rules

The Validation Rules for IRP5 code 4118 in the electronic file are:
• Conditional –
o If Certificate has ETI (Code 3026) is populated with a “Y”, then this field is mandatory
o If Certificate has ETI (code 3026) is populated with a “N” or is not completed, then this field must not be completed
• Decimal digits are mandatory even if the decimal value is zero
• Must be decimal point (comma invalid)
• Value must equal the sum of all Monthly Calculated ETI (code 7004) fields for the employee
• Only applicable from 2014 year of assessment
• If Certificate Type is ITREG, then this field must not be completed
Note: Must not be reported on a certificate that will be issued to an employee.

All income and deduction components (e.g. salary, commission, allowances, benefits, medical contributions, employer information, etc.) must be reported against the applicable code as prescribed in the GUIDE FOR CODES APPLICABLE TO EMPLOYEES’ TAX CERTIFICATES PAYE-AE-06-G4.

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax