Notable Currency Flags

With the very different, payment combinations of US$ and ZWL, we have now introduced a new screen with flags that need to be set according to users needs in their Salaries or Wages departments. This section gives details of the more important settings on that screen

1.Payment Currency:    

1.1 Zim$: For Companies that just pay their staff in ZWL / RTGS

1.2 US$: Earnings are all indicated in US$

1.3 Both Currencies: Most companies are now paying a portion of their Wages in US$ with the balance being paid in ZWL

1.4 %age of Gross: Salaries or wages are entered in US$ with the Pay Generation splitting these into the two separate currencies according to this %age

1.5 Split US$ Salary: Operators enter the US$ Salary for Monetary Details - the program uses the %age for that particular pay point to work out the actual  US$ and ZWL salaries

2. US$ only in Selected Pay Points: Some companies pay Management in US$ with Junior Staff being paid solely in ZWL. If this flag is set to Yes then you have to set the corresponding flag for Each Pay Point.  

3. Accumulate Tax Free Bonus from Start of Year: This applies to Both Currencies only. The application of the Yearly Tax Free Bonus when paying some in US$ and some in ZWL is open to debate. We are of the opinion that it should be on an Accumulated Percentage Basis. 

3.1 E.G. If you paid a bonus of ZWL 100k in January when you were only paying in ZWL that would have been 20% of the ZWL 500k allowable for 2022. If you then paid US$350 Bonus in May that would have been an extra 50% of the US$700 allowable

3.2 Alternative If you have had some months of just ZWL and some with both currencies then you might feel that the Tax Free allotment should work from December going backwards thereby encompassing the spirit of Christmas.

3.3 Flag Setting: Set this flag to Yes if you want to implement the Accumulate %age option

4. Additional US$ Salary: Set to Yes if you are paying in Both Currencies and you want some of the Salary to be in US$

5. Leave Rate in ZWL or Pro Rata US$: Set to Pro Rata if any Cash in Lieu (CILL) is to be split between US$ and ZWL according to the ratio of their salaries

6. Actual or Taxable Income for PAYE: The relevant Act states that, when paying salaries in both currencies, the PAYE should be split according to the ratio of US$ income to ZWL income. We, at Softrite, are of the opinion that this is to be interpreted as  Taxable income as opposed to Actual Gross income.

6.1 Taxable Income: This is the total gross payable less tax deductible deductions like NSSA, Pension, Union and NEC. From this figure we also deduct  any tax free Christmas Bonus

6.2 Actual Gross Income: All earnings for the affected pay periods

6.3 PAYE Ratio: the PAYE Ratio is displayed in Pink Highlighted figures on the PAYE Calculation screen