13th Cheque Tax

[Maelly]

It's that time of the year whereby some of us get our 13th cheques, I just wanted to check how much (%) is one expected to pay tax if your tax was not spread across the past 12 months? Thanks

 

[DJ...]

You pay your marginal tax rate. It's not taxed any differently to other income tax...

 

[googoodoll]

Mine was R2000 more than what I usually pay

 

[Hamster]

Mine was R2000 more than what I usually pay

Total (as in base + 13th combined) or just on the 13th cheque?

 

[ElementZero]

You pay your marginal tax rate. It's not taxed any differently to other income tax...

This is not correct , as this can increase in that month if you move tax brackets

 

[googoodoll]

Total (as in base + 13th combined) or just on the 13th cheque?

Total. I usually pay around R300 I think but now paid R2300ish. My normal salary is very tiny but my bonus was a bit bigger so it must have pushed my annual income into another bracket.

 

[AlmightyBender]

This is not correct , as this can increase in that month if you move tax brackets

If you move tax brackets you are still being taxed at your individual marginal rate, so it is indeed completely correct.

 

[ReBeL25]

I normally just take the total and subtract 25%. Hasn't failed met yet.

 

[CamiKaze]

Mine was R2000 more than what I usually pay

pffft. Mine is never more than my salary...

 

[jacodebeer]

http://mybroadband.co.za/vb/showthread.php/576405-13th-salary-tax

 

[Die_Miek]

my normal tax is R3600
13th cheque tax is R6300

 

[mr_norris]

What I did was grab the PAYE tax tables and check what the tax would be if my salary doubled.

Doing that showed me that what I got was pretty much right.

 

[supersunbird]

If you move tax brackets you are still being taxed at your individual marginal rate, so it is indeed completely correct.

Incompetent HR might tax you as if the 13th cheque combined with the normal salary as your normal monthly income, would only recover it at tax return time...

 

[geezer]

My normal tax is ±R15000
Bonus month tax is R55700

 

[Tman*]

13th Cheque? What is that?

 

[ghostbuster]

My normal tax is ±R15000
Bonus month tax is R55700

R55k tax.... Dude 200K bonus?

 

[supersunbird]

13th Cheque? What is that?

Something you don't get...

 

[Arthur]

It depends.

Your tax liability is annual, based on income in that tax year. At best, employers can only guess your overall liability and compute according to the published tables, making the statutory deductions for PAYE. The final recon happens in your tax return, which for current year happens after end Feb 2014. What will your total taxable income be? What income tax will you have paid by then? Only then can you get your overall liability.

 

[geezer]

R55k tax.... Dude 200K bonus?

No, 100K

 

[DJ...]

This is not correct , as this can increase in that month if you move tax brackets

It forms a part of your total taxable income, which determines your marginal rate...