Has the tax gone up!?

S

stevovo

Expert Member
Joined
Apr 24, 2008
Messages
1,496
Reaction score
2
Location
Pretoria
Good day.

Has something changed with regards to the PAYE tax?

The reason I ask is because this month I suddenly got R400 less pay. And according to my payslip my PAYE is R400 more than it was last month, but my income hasn't changed at all. When I confronted my employers about this they say that the tax rate has gone up!?

So is this true?

TIA
 
Tax rebates gone up and therefore your tax shouldn't have increased IMHO
 
Request a breakdown of the previous months salaray slip and this months salary slip. It's unusual for it to change at this late a date as any tax implications take effect 1st March although most tax softare/systems will only update April which normally means April pay period is an adjustment period but by May you should at your correct payment.

Is yours a fixed salary? Benefit change?
 
Kosmik said:
Request a breakdown of the previous months salaray slip and this months salary slip. It's unusual for it to change at this late a date as any tax implications take effect 1st March although most tax softare/systems will only update April which normally means April pay period is an adjustment period but by May you should at your correct payment.

Is yours a fixed salary? Benefit change?
Click to expand...

It seems like it was an error on their behalf so all looks good. Dunno why they first said it was tax rates though...
 
stevovo said:
It seems like it was an error on their behalf so all looks good. Dunno why they first said it was tax rates though...
Click to expand...

If you ever have the unfortunate experiance of an increase pushing you into the next bracket but not enough to compensate for the new tax you'd know why. First defense :p
 
Kosmik said:
If you ever have the unfortunate experiance of an increase pushing you into the next bracket but not enough to compensate for the new tax you'd know why. First defense :p
Click to expand...

Seriously... Please tell me you have not seen how private income tax is calculated.

As I hope most people know, the tax calculation wasn't worked out by 5 year olds and even if you jump by R1 into the next bracket, you'll still take home more than if you hadn't.
 
UnUnOctium said:
Seriously... Please tell me you have not seen how private income tax is calculated.

As I hope most people know, the tax calculation wasn't worked out by 5 year olds and even if you jump by R1 into the next bracket, you'll still take home more than if you hadn't.
Click to expand...

So if i'm on R1 below bracket and get a R2 increase and now R1 above the bracket I won't be paying more in tax and getting less take home pay? (extreme example I know, just want to figure it out)
 
supersunbird said:
So if i'm on R1 below bracket and get a R2 increase and now R1 above the bracket I won't be paying more in tax and getting less take home pay? (extreme example I know, just want to figure it out)
Click to expand...

You'll be paying more, but it'll be say 30% of that R1 so you'll still take home more.

P.S. Look here -> http://www.oldmutual.co.za/markets/south-african-budget/income-tax-calculator.aspx

You'll see that it's a tiered structure with the key being that every tier takes base amount of the previous tier at maximum and then adds a percentage (the 'rate') of the current tier above the previous tier's maximum. Simple, simple maths.
 
Last edited:
UnUnOctium said:
Seriously... Please tell me you have not seen how private income tax is calculated.

As I hope most people know, the tax calculation wasn't worked out by 5 year olds and even if you jump by R1 into the next bracket, you'll still take home more than if you hadn't.
Click to expand...

Then certain large corporates have an issue with their tax tables because I know of at least three people this happened to. Whats worse is its an auditing firm.
 
Kosmik said:
Then certain large corporates have an issue with their tax tables because I know of at least three people this happened to. Whats worse is its an auditing firm.
Click to expand...

This probably happens because big companies like to 'overtax' with their systems. Don't ask me why, sounds like lazy gits to me. Said people who got overtaxed should be getting a big pay out from SARS at the end of the year then.

Also, this can't happen if you rise from below the threshold to just above as (if you notice) the tax rebate which applies to everyone is equivalent to the annual tax on the lowest taxable income. I.e. if you make R1 above the threshold, you'll get taxed 18% of that R1 since the rebate will cover the 18% of the rest.
 
UnUnOctium said:
You'll be paying more, but it'll be say 30% of that R1 so you'll still take home more.

P.S. Look here -> http://www.oldmutual.co.za/markets/south-african-budget/income-tax-calculator.aspx

You'll see that it's a tiered structure with the key being that every tier takes base amount of the previous tier at maximum and then adds a percentage (the 'rate') of the current tier above the previous tier's maximum. Simple, simple maths.
Click to expand...

Thanks, I learnt something today (I hadn't really looked into it before).
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X