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Thread: Tax % on Bonus

  1. #1
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    Question Tax % on Bonus

    Hi Guys

    This is the time of the year again where most of us get our bonuses (Performance/13th cheaque, etc), all I want to know is how much tax do you pay? Last year I paid 25% so I wonder if this is standard or not?

    Also, I am considering restructuring my pay to include the bonus on my monthly salary (not get bonus at the end of year). Will I save more on tax if I include this on my monthly salary OR its better to leave it as it is.

    Thanks guys and happy bonussing...
    If the grass is greener on the other side, it probably has more poep in it

  2. #2
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    Tax on bonus is calculated the same as your monthly tax, it should be added to your annual income, and the % decided, but usually a lazy company will just tax it on the monthly %, and then let SARS deal with it later. I won't even mention what % I pay, it sickens me.

    http://www.oldmutual.co.za/markets/s...alculator.aspx

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  4. #4

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    We only get bonus in March

    But well worth the wait
    I have signed up with Bitco and it's by far the best internet I have ever had. Get a quote

  5. #5
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    Quote Originally Posted by Pitbull View Post
    We only get bonus in March

    But well worth the wait
    Thats actually a good time, cause lately the tax percentage for each year goes down in Feb.

  6. #6

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    Quote Originally Posted by xrapidx View Post
    Thats actually a good time, cause lately the tax percentage for each year goes down in Feb.
    yip.

    and financial year results is in = Share price rise ect. Damn I love March
    I have signed up with Bitco and it's by far the best internet I have ever had. Get a quote

  7. #7
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    It is better to pay the 13th cheque tax over the duration of the year.

    If you pay at the end of the year, the 12th and 13th are lumped together, which can put you into a higher tax bracket, ie: more tax. Paying monthly avoids this, and gives you a taxed 12th, and untaxed, ie: full Gross salary together in DEC.

    N.

  8. #8
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    So you guys are saying by my getting taxed 25% I'm actually getting ripped off? Cause it seems like my bonus should also be taxed with the same % just like my salary?

    If so, is it fair to say Id rather incoporate my bonus on my monthly salary?

    Thanks
    If the grass is greener on the other side, it probably has more poep in it

  9. #9
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    Quote Originally Posted by Mikroz View Post
    It is better to pay the 13th cheque tax over the duration of the year.

    If you pay at the end of the year, the 12th and 13th are lumped together, which can put you into a higher tax bracket, ie: more tax. Paying monthly avoids this, and gives you a taxed 12th, and untaxed, ie: full Gross salary together in DEC.

    N.
    Oh, this means I should just incorporate it on my monthly salary then.

    Thanks
    If the grass is greener on the other side, it probably has more poep in it

  10. #10
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    Quote Originally Posted by Mikroz View Post
    It is better to pay the 13th cheque tax over the duration of the year.

    If you pay at the end of the year, the 12th and 13th are lumped together, which can put you into a higher tax bracket, ie: more tax. Paying monthly avoids this, and gives you a taxed 12th, and untaxed, ie: full Gross salary together in DEC.

    N.
    That logic is incorrect. You still get taxed the same annually, and will be in the same tax bracket. The only difference is if its spread accross months is you'll get less each month, and more with the bonus, or more each month, and less with the bonus.

    If yu earn xxx annually, your tax bracket remains the same, you pay x amount of tax. Wether you pay it all at once, or accross months.
    Last edited by xrapidx; 11-12-2007 at 10:13 AM.

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    Quote Originally Posted by EliasMH View Post
    Oh, this means I should just incorporate it on my monthly salary then.

    Thanks
    Take your annual salary, including your bonus, put it into one of the tax calculators, that'll give you what your tax % should be.

  12. #12

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    I pay 40% tax on my bonus :-(

  13. #13
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    Taxable income (R) Rates of tax
    0 – 112 500 18% of each R1
    112 501 –180 000 R20 250 +25% of the amount above R112 500
    180 001 –250 000 R37 125 +30% of the amount above R180 000
    250 001 –350 000 R58 125 +35% of the amount above R250 000
    350 001 –450 000 R93 125 +38% of the amount above R350 000
    450 001 and above R131 125 +40% of the amount above R450 000

  14. #14
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    Quote Originally Posted by xrapidx View Post
    That logic doesn't doesn't work. You still get taxed the same annually, and will be in the same tax bracket. The only difference is if its spread accross months is you'll get less each month, and more with the bonus, or more each month, and less with the bonus.

    If yu earn xxx annually, your tax bracket remains the same, you pay x amount of tax. Wether you pay it all at once, or accross months.
    Now this confuses me

    Quote Originally Posted by xrapidx View Post
    Take your annual salary, including your bonus, put it into one of the tax calculators, that'll give you what your tax % should be.
    The thing is my monthly salary tax is x amount right, but my bonus get taxed xx amount. My question is (1) is this not supposed to be the sam, (2) obvioulsy in my case it's not, so how do I make it to be the same? and (3) I thought it would be the same if I add my bonus across my annual salary, i.e. I divide my bonus by 12 and spread it over my monthly salary?

    Do I make sense (bear with my English here)
    If the grass is greener on the other side, it probably has more poep in it

  15. #15
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    Quote Originally Posted by CodeMaster View Post
    I pay 40% tax on my bonus :-(
    What about on your salary?
    If the grass is greener on the other side, it probably has more poep in it

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