SOURCE CODE DESCRIPTIONS IRP5 code 7003

Employees’ Employment Tax Incentives and Reason codes

In the electronic file IRP5 code 7003 is used for: Minimum Wage. This indicates the minimum wage which is the higher of:
• The national minimum wage, or
• The minimum wage according to the wage regulating measure
Note:
• If the employer is exempt from the national minimum wage after successful application and there is no wage regulating measure, then this field must be zero.
• The same minimum wage rate (hourly, weekly, or monthly) that is used for code 7003 must be used for 7008

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

The prescribed Length of IRP5 code 7003 in the electronic file is: N11.2