Employment Equity Reporting > Allocating Items as Not Applicable, Fixed or Variable

When completing the pre-validation checks before downloading Employment Equity reports, you may receive validation warnings for custom items or built-in items.

Custom Items

If you get a validation warning for custom items, you may need to allocate these as not applicable, fixed or variable. To do this:

  • Click on the item in the validation warning, or alternatively go to Settings > Custom Items and select the relevant custom item
  • In the Employment Equity Reporting field, select one of the following:
    • Not Applicable: Select this option to exclude the custom item from equity reporting
    • Fixed Remuneration: Select this option if the custom item is considered a guaranteed remuneration type
    • Variable Remuneration: Select this option if the custom item is incentive-based, is made irregularly, is discretionary in nature, or is paid regularly but the value fluctuates. Examples include back pay, commission, performance bonuses, share schemes, retention bonus, dividends etc.
  • Then click Save.

Built-In Items

If you get a validation warning for built-in items, you may need to allocate these as not applicable, fixed or variable. To do this:

  • Click on the item in the validation warning.
  • In the Employment Equity Reporting field, select ‘Not Applicable’, ‘Fixed’ or ‘Variable’ – use the list below to assist you.
  • Click Save.

The following information outlines how items should be allocated:

  • Annual Bonus
    • Fixed – All non-discretionary bonuses should be allocated as ‘Fixed’ remuneration. A non-discretionary bonus is not performance based in nature, but instead is guaranteed or fixed in terms of the employment contract, such as a 13th cheque.
    • Variable – All short-term incentives that are performance-based as well as discretionary payments not related to performance should be allocated as ‘Variable’ remuneration. Examples of these would be performance-based bonuses and retention bonuses, respectively.
  • Annual Payment
    • Fixed – All non-discretionary payments should be allocated as ‘Fixed’ remuneration. A non-discretionary payment is not performance based in nature, but instead is guaranteed or fixed in terms of the employment agreement, such as a 13th cheque or annual bonus.
    • Variable – All short-term incentives that are performance-based, as well as discretionary payments not related to performance should be allocated as ‘Variable’ remuneration. Examples of these would be performance-based bonuses and retention bonuses, respectively.
  • Arbitration Awards
    • Not Applicable – Arbitration awards where there is no ongoing employment relationship post the award should be excluded from equity remuneration.
    • Variable – Arbitration awards where there is an ongoing employment relationship post the award should be allocated as ‘variable’ remuneration.
  • Extra Pay
    • Variable – All short-term incentives that are performance-based as well as discretionary payments not related to performance should be allocated as ‘Variable’ remuneration. Examples of these would be performance-based bonuses and retention bonuses, respectively.
    • Excluded – Gratuities and gifts from the employer.
  • Public Holiday – worked
    • Fixed – Salary (or wage) 
    • Variable – All short-term incentives that are performance-based as well as discretionary payments not related to performance should be allocated as ‘Variable’ remuneration. Examples of these would be performance-based bonuses and retention bonuses, respectively.
  • Loss of Income Policy Payout
    • Variable – Lump sums in respect of ongoing employment e.g. back pay and leave paid upon termination.
    • Excluded – Non-employment related lump sums such as severance pay.
  • Restraint of Trade
    • Variable – Lump sums in respect of ongoing employment e.g. back pay and leave paid upon termination.
    • Excluded – Non-employment related lump sums such as severance pay.
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