13th Cheque Tax

[Devill]

my normal tax is R3600
13th cheque tax is R6300

0 – 165 600 18% of each R1
165 601 – 258 750 R29 808 + 25% of the amount above R165 600
258 751 – 358 110 R53 096 + 30% of the amount above R258 750
358 111 – 500 940 R82 904 + 35% of the amount above R358 110
500 941 – 638 600 R132 894 + 38% of the amount above R500 940
638 601 and above R185 205 + 40% of the amount above R638 600

See the effective tax rate on R20,000.00 a month is 15.14 % because of the sliding scale (R 240,000.00 a year)
However when you receive your "13th cheque" you pay the highest tax bracket that you TOTAL annual wage will fall into (if a part of the 13th cheque pushes you into a higher tax bracket for total annual income just calculate it with fractions). If you are earning R20,000 a month, you earn R240k a year thus putting you in the "25%" tax bracket for you 13th cheque (up to R18,750, after whjich you fall into the next tax bracket for the fraction of the 13th cheque that puts your total income over 258,750).

 

[Sly21C]

My company paid out a bonus to me last December which equiated to twice my monthly salary, but they didn't give me a pay slip and it turns out they didn't pay tax, i.e. PAYE. So I guess I should pay tax to SARS myself? If so, must I pay my marginal tax rate?

 

[Sinbad]

My company paid out a bonus to me last December which equiated to twice my monthly salary, but they didn't give me a pay slip and it turns out they didn't pay tax, i.e. PAYE. So I guess I should pay tax to SARS myself? If so, must I pay my marginal tax rate?

Let sars work it out when you submit your return

 

[mintydroid]

My company paid out a bonus to me last December which equiated to twice my monthly salary, but they didn't give me a pay slip and it turns out they didn't pay tax, i.e. PAYE. So I guess I should pay tax to SARS myself? If so, must I pay my marginal tax rate?

They could have taken it off during the year.

 

[froot]

My company paid out a bonus to me last December which equiated to twice my monthly salary, but they didn't give me a pay slip and it turns out they didn't pay tax, i.e. PAYE. So I guess I should pay tax to SARS myself? If so, must I pay my marginal tax rate?

Theyr'e supposed to pay tax to SARS on your behalf, regardless of whether it's bonus time or not.
I'd go make sure if I were you.

 

[Pitbull]

My company paid out a bonus to me last December which equiated to twice my monthly salary, but they didn't give me a pay slip and it turns out they didn't pay tax, i.e. PAYE. So I guess I should pay tax to SARS myself? If so, must I pay my marginal tax rate?

It will show on your IRP5 when you file your return. If tax was due you will be asked to pay it come returns time. If not they paid tax through the year. Let it be and wait for your return.

 

[Sly21C]

Let sars work it out when you submit your return

I'll consider this, or maybe visit SARS and see what they say.

They could have taken it off during the year.

Nope, they didn't

Theyr'e supposed to pay tax to SARS on your behalf, regardless of whether it's bonus time or not.
I'd go make sure if I were you.

True, they should have paid tax of my bonus to SARS. No issues with my monthly salary as far as PAYE tax is concerned.

It will show on your IRP5 when you file your return. If tax was due you will be asked to pay it come returns time. If not they paid tax through the year. Let it be and wait for your return.

Yeah, I think I'll wait for my IRP5 and I'll take action from there...

 

[Surv0]

Bonus's get taxed much higher, up to 40%..

 

[AchmatK]

Bonus's get taxed much higher, up to 40%..

Wrong. Any decent payroll software and HR department will get it right.

PAYE is average out by the payroll software to ensure that the correct amount is withheld for the tax year.

The bonus will push your income for the year higher. The bonus itself does not have a higher tax rate.