IRP5s and companies paying RA for employees



Den says:
14 May 2019 at 9:32

If a company is paying into a Retirement Annuity (RA) for employees when preparing an IRP5, using source code 3828 as income, would we then need to use source code 4006 for the same amount? In other words, source code 3828 for the amount paid by company on behalf of employee (this amount will be added to the income total) and code 4475 for the same amount. If an employee has not contributed anything code 4006 will be 0, but will still have to appear on the IRP5?

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TaxTim TaxTim says:
14 May 2019 at 10:47

Yes, that is correct. Source code 3828 is the Retirement Annuity (Employer) Benefit, source code 4006 refers to the Retirement Annuity contribution made by the employee. Please note that you would also record the amount under source code 4475 - Retirement Annuity (employer) - deduction.
Also, for source codes 3828 and 4475 this is correct. Please note that a zero value will not appear under source code 4006 on the IRP5. If there is no amount for code 4006, the code will not appear on the IRP5.




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