Does this payslip make sense?

[Ms_S]

So my husband got his payslip today and was shocked by the deductions. His deductions was basically double the net he was getting.

So there's two columns on his payslip, earnings and deductions. Under earnings there's amounts for his basic, overtime, travelling allowance etc. Under deductions there's tax, UIF, provident, the exact travelling allowance again, as well as other deductions. The travelling allowance he got on Monday, and it was the same amount that appears on the payslip. He gets travelling every second month. This they supposed to use for fuel and flights to go home.

For the past 6 months their travelling allowance has been tax free, and appeared somewhere on the bottom of their payslip (it wasn't under earnings or deductions, it was in a block by itself). This month his employers said that their travelling will start to be taxed because it increased by quite a bit.

But the way they put it on the payslip doesn't make sense. Can someone explain this rationale? He brought it up at HR and they tried to justify why they were taxing something and then deducting it again. Their explanation was just more confusing.

 

[Batista]

If his HR department cant make him understand then i dont think anyone here can make you understand.Good Luck.

 

[Mike Hoxbig]

His - implies ownership
He's - shorthand for he is

 

[Ms_S]

His - implies ownership
He's - shorthand for he is

Changed it

 

[ElecEng]

you might find that by "deducting" it they are putting it into the tax-exempt portion of his salary and hence it is better off there.

 

[Lordpiet]

His - implies ownership
He's - shorthand for he is

god dammit get something to do with your life . . .

 

[azbob]

So my husband got his payslip today and was shocked by the deductions. His deductions was basically double the net he was getting.

So he's paying them to work there?

 

[MKFrost]

Speaking under correction but sounds like they shoed the travel as an income i.e. earnings in order to bring it into account for tax purposes after which it is taken off again. I take it he get paid that travel allowance in another way and not with his normal salary.

 

[Ms_S]

you might find that by "deducting" it they are putting it into the tax-exempt portion of his salary and hence it is better off there.

But it appears under 'earnings' as well, and is being taxed. How can travel allowance of R10 000 appear under 'earnings' (so pushing he's gross up, and pushing the amount of tax up as well), and then appear under deductions as well?

 

[Ms_S]

Speaking under correction but sounds like they shoed the travel as an income i.e. earnings in order to bring it into account for tax purposes after which it is taken off again. I take it he get paid that travel allowance in another way and not with his normal salary.

Yes, he got it separate on Monday. It would have made sense if he's travelling had a separate payslip, and was then taxed on its own.

 

[xrapidx]

whats the code next to it?

 

[Dolby]

So he's paying them to work there?

I think she means if it's R30,000.00 gross and he nets R10,000.00 net - so the deductions are R20,000.00 (double the R10,000) - but he is still paid

 

[MKFrost]

Yes, he got it separate on Monday. It would have made sense if he's travelling had a separate payslip, and was then taxed on its own.

Well they can do one of two things, either give him the R10,000 minus the tax or give him the R10,000 as they are doing now and taking the tax from the other income i.e on the payslip.

 

[Celine]

what is the gross travel allowance on the left side and what is the deduction for travel on the right side?

 

[ElecEng]

how do you know he is being taxed on it?

 

[Ms_S]

what is the gross travel allowance on the left side and what is the deduction for travel on the right side?

Gross travel: R10 000
Deducted travel: R10 000

 

[tortured]

Probably a mistake. According to my payslip last month I have -30 000 leave days left.

 

[jambai]

Lets be honest HR is the most useless function in most companies.They get in the way more than add value

 

[hellfire]

So my husband got his payslip today and was shocked by the deductions. His deductions was basically double the net he was getting.

So there's two columns on his payslip, earnings and deductions. Under earnings there's amounts for his basic, overtime, travelling allowance etc. Under deductions there's tax, UIF, provident, the exact travelling allowance again, as well as other deductions. The travelling allowance he got on Monday, and it was the same amount that appears on the payslip. He gets travelling every second month. This they supposed to use for fuel and flights to go home.

For the past 6 months their travelling allowance has been tax free, and appeared somewhere on the bottom of their payslip (it wasn't under earnings or deductions, it was in a block by itself). This month his employers said that their travelling will start to be taxed because it increased by quite a bit.

But the way they put it on the payslip doesn't make sense. Can someone explain this rationale? He brought it up at HR and they tried to justify why they were taxing something and then deducting it again. Their explanation was just more confusing.

Your best bet for help is to upload the payslip (after removing identifiable information, of course).
Payslips are structured differently from company to company and it's near impossible to determine what's going on from your written description in the OP

 

[Celine]

Gross travel: R10 000
Deducted travel: R10 000

that doesn't seem right at all. why give the travel allowance if they going to take it back. they should be deducting tax from it that's all.