Do you know what to include and exclude on the EEA4 form? Find out here
As a designated employer, you MUST comply with the Employment Equity (EE) Act. Not doing so can lead to heavy penalties being imposed on you.
Within your legal obligation to comply with the EE Act, you have to report on employment equity within your company.
This involves completing and submitting several forms to the Department of Labour every year.
One of these forms is the EEA4 form. It deals with income differentials within your company.
Having said that, here's what you must include and exclude when calculating remuneration for the EEA4 form:
What to include
· Housing, accommodation allowance or subsidy;
· Car allowance or provision of a car. But not if you provide the car so the employee can work;
· Any cash payments you make to an employee. But not any of the exclusions that are listed below;
· Any other payment in kind your employee receives. Except any of the exclusions listed below;
· Your contributions to medical aid, pension, provident fund, death benefit and funeral benefit schemes or any other similar schemes.
What to exclude in your calculations
· Any cash payment or payment in kind you give so the employee can work. This can include any equipment, tool or closely-related allowance. It can also include transport, or helping with a transport allowance so the employee can travel between work and home;
· A relocation allowance;
· Gratuities. This can include tips your employees get or gifts you give them;
· Share-incentive schemes;
· Discretionary payments you don't link to an employee's performance or working hours;
· An entertainment allowance; and
· An education or schooling allowance.
So, there was what you should include and exclude when completing the EEA4 form.
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