Lezé Felton
WHATS New in Paymaster
Zimbabwe - Interest Rate on Company level
From the Team
October 2022
With the rapid changes in a complex economic climate, Paymaster has identified the necessity of flexibility when setting economic indicators on the payroll. Enhancements have been made which allow customers to maintain the interest rates used in the Loan Fringe Benefit calculation on low/no-interest loans. Paymaster will no longer maintain these rates.
Legislation
As per the Finance (No. 2) Act, 2020 (No. 10 of 2020), with effect from 01 January 2021 and if the loan is granted in Zimbabwean dollar, a benefit will arise if the amount of the loan exceeds ZWL 8 000.00 and the interest rate is less than 15%.
Paymaster Impact
Steps to follow when adding a fringe benefit loan for the first time:
- Step 1: Process the official interest rate (Config > Basic Settings > General Company > Custom Forms)
- Step 2: Add the Loan Deduction component to the payroll if not added already (Config > Payroll > Payroll Components)
- Step 3: Process the Loan Deduction details (Employee > Payroll Processing > Recurring Payroll Components)
- Step 4: Check the Loan Fringe Benefit calculation (Other Actions > Calculation Breakdown)
- Note: If the Loan Fringe Benefit should not calculate, activate the “Is this a non-fringe benefit loan?” field. Refer to the guidelines in the Legislation section to determine if a loan should result in a fringe benefit.
Steps to follow for employees with an existing FBLOAN component on the live payslip:
- Step 1: Process the official interest rate (Config > Basic Settings > General Company > Custom Forms)
- Step 2: Recalculate the live payslip.
- If no official interest rate is processed, existing FBLOAN components on the live payslip will result in a negative value.
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