FTC and PAYE

[gcs001]

Hi All,
I have recently joined a company as a Fixed Term Contractor.
I will be paying my medical aid and retirement annuity privately (not via the company as they don't provide for it).
The company has advised that they do not cater for including these private contribution as part of their tax calculation to reduce the monthly tax I pay.
Is there any way that I can "force" my employer to take into account these private contributions as part of their tax calcs?
Is there something I can do via SARS to get a tax directive of sorts?

The impact of not including these private contributions on my tax calc means my tax is calculated at my marginal rate of 41%. A moerse chunk that I can only claim back at the end of each tax year.

Any help/suggestions would be appreciated.

TIA.

 

[AchmatK]

There is no obligation on them to include your private contribution to a medical aid or RA. However, i do not see why they can't. Most payroll software does cater for this provision and it should not be an inconvenience to add it in as it's a simple process in the payroll system done once and automatically taken into account at payroll processing.

 

[gcs001]

My view as well...but they've indicated that it's an admin nightmare for them and that's why they stopped it a while back. :-(

 

[AchmatK]

More like incompetent staff. I've used Pastel payroll, VIP and even the basic Sage One payroll has this function and they have a guide explaining it.

The only admin issue would be to randomly request proof from affected employees as SARS could hold them liable should an employee lie.

 

[ITCynic]

Can you not register as a provisional tax payer and handle all the tax yourself?

The company then pays you without any deductions. You just need to prove to the company that you are a provisional taxpayer.

 

[gcs001]

No, checked the requirement to become a provisional tax payer and being a monthly-paid salaried employee I don't qualify.