Commission Earner - Tax

[Dolby]

Im on an iPad and it's not pulling up the correct local links :/

What does commission get taxed at?

My salary is pretty much a basic, but about 15% of my income is commission

EDIT : I don't get this either. Working on an example basic salary earning R15,000pm (R180,000pa), then according to yourtax.co.za, my tax rate (2013) is R28,800 + 25% of the amount above R160,000.00 ...so total tax is R33,800. Doesn't this mean I take home (180,000 - 33,800) / 12 = 12,183.33

The tax calculator on the same site says I take home 13,136.00?

 

[IceDreama]

Hi

Firstly you have forgotten about your primary rebate which gets taken off your annual tax before dividing by 12.

Secondly, you will be taxed normally. Your commission income is only 15% of your total income and thus it will be added to your taxable income. If you earned more than 50% commission, then you would be allowed a lot more deductions but it would still be taxed according to the tax tables.

This is a very basic answer though but hope it helps.

 

[Dolby]

I was just editing to ask about that primary rebate ...

Thank you

 

[D3x!]

You are not forgetting deductions are you?

Also I assume your commission varies month to month?

 

[Dolby]

I understand I can't deduct anything on primarily basic salary?
Or do you mean like medical aids?

Commission various from about 8 - 18%

 

[Dolby]

A sample pay pays slip :

Basic salary : 15,000
Commission : 1,500
Medical Aid Fringe Benefit : 1,200
Comany Contribution : 1,200

Then under deductions they have SITE, PAYE, UIF and medical aid

I trying to see how they get to net

 

[Other Pineapple Smurf]

Im on an iPad and it's not pulling up the correct local links :/

What does commission get taxed at?

My salary is pretty much a basic, but about 15% of my income is commission

EDIT : I don't get this either. Working on an example basic salary earning R15,000pm (R180,000pa), then according to yourtax.co.za, my tax rate (2013) is R28,800 + 25% of the amount above R160,000.00 ...so total tax is R33,800. Doesn't this mean I take home (180,000 - 33,800) / 12 = 12,183.33

The tax calculator on the same site says I take home 13,136.00?

I use the Pastel calculator as my employer uses them for our payroll. Easier to understand.

 

[Celine]

you will pay the normal rate as per the monthly tax tables.

 

[Skywalker42]

And remember you don't pay UIF on commision, just on the fixed salary part.