Salary Question

[Piesank]

I feel my buddy is getting shafted.

His deductions are way too high imho and I cant determine why on his payslip - we only pay employees based on hours worked so it is hard for me to compare.

Payslip summary:

Earnings

First Claim R7115.28

Deductions

Spec Ann Bonus Tax R1280.76
Telephone R2.36
UIF Member R71.15

Gross
R7115.28

Total Deductions
R1354.27

Net salary
R5761.01

Then at the bottom it says:

Statistical Data

JTD Special Bonus R37094.01
JTD-Tax Bonus Type R5904.54

That is it for his payslip, I asked him how do they calculate his pay and he said he fills in his own clock card/time sheet and then they pay him according to it.

His normal time hours for August is 184 and his OT (not sure if it is 1.333/1.5) is 19 hours.

Please help - he works at the local varsity as a asset controller.

 

[MKFrost]

Seems like they are taking off the tax for the annual bonus each month. In that way he gets his bonus 'clean' i.e. no tax being taken off when its paid as the tax has already been deducted on a monthly basis.

 

[Bar0n]

JTD Special Bonus R37094.01
JTD-Tax Bonus Type R5904.54

....

Please help - he works at the local varsity as a asset controller.

I knew those were UFS payslip lines!

 

[Piesank]

Seems like they are taking off the tax for the annual bonus each month. In that way he gets his bonus 'clean' i.e. no tax being taken off when its paid as the tax has already been deducted on a monthly basis.

Cool that makes more sense but will his bonus then be the 37k?

I knew those were UFS payslip lines!

Haha what gave it away the local varsity or my location?

 

[Batista]

I personally dont see anything wrong.

 

[Bar0n]

Cool that makes more sense but will his bonus then be the 37k?

Haha what gave it away the local varsity or my location?

These lines gave it away:

JTD Special Bonus
JTD-Tax Bonus Type

I've been on the receiving end of these payslips.

I don't want to burst a bubble here, but I think the JTD Special Bonus is honestly just all of your income for the financial year added up. I will need to check again, but it wasn't so much something you WILL be getting as something you already got.

 

[Mike Hoxbig]

I feel my buddy is getting shafted.

Gross
R7115.28

Total Deductions
R1354.27

Net salary
R5761.01

He's getting shafted all right. I don't know how people survive on that

 

[Piesank]

These lines gave it away:


I've been on the receiving end of these payslips.

I don't want to burst a bubble here, but I think the JTD Special Bonus is honestly just all of your income for the financial year added up. I will need to check again, but it wasn't so much something you WILL be getting as something you already got.

Well in that case paying R1280 tax on R7115 is ridiculous. . .

What can one do in the situation?

 

[Piesank]

He's getting shafted all right. I don't know how people survive on that

Sometimes you cant do anything about the income, but the deductions are crazy

 

[MKFrost]

Sometimes you cant do anything about the income, but the deductions are crazy

Agree, if that is not his year-end bonus and the tax does not include the bonus tax being deducted monthly then he is paying way to much tax.

 

[etwylite]

These lines gave it away:


I've been on the receiving end of these payslips.

I don't want to burst a bubble here, but I think the JTD Special Bonus is honestly just all of your income for the financial year added up. I will need to check again, but it wasn't so much something you WILL be getting as something you already got.

Isnt JTD Afrikaans for Year to date (Jaar tot op datum)?

 

[Piesank]

Isnt JTD Afrikaans for Year to date (Jaar tot op datum)?

Yes, but the problem is he is getting taxed on a bonus which we can't see on the payslip and not sure if he is getting it at the end of the year. . . .

I will speak with him tonight to try and get more clarity

 

[etwylite]

I hear you, but if he files an income tax return ( i know he doesnt have to as he is below the threshold) he will be entitled to a refund if he has overpaid.

 

[MKFrost]

I hear you, but if he files an income tax return ( i know he doesnt have to as he is below the threshold) he will be entitled to a refund if he has overpaid.

True but they are essentially screwing with his quality of life by not applying the correct deductions.

 

[diabolus]

Well he is paying 18% tax, which is what you are suppose to pay in the 0 - 160k bracket. Nothing wrong there.

 

[MKFrost]

Well he is paying 18% tax, which is what you are suppose to pay in the 0 - 160k bracket. Nothing wrong there.

True, sorry, I never calculated the actual percentage of that tax, did no now and the R1,280 is in line for his gross earnings, so agreed, it looks fine, my mistake.

 

[Mike Hoxbig]

Well in that case paying R1280 tax on R7115 is ridiculous. . .

What can one do in the situation?

Absolutely. My understanding is that if they over-calculated his income tax, he should firstly speak to them about it so that it isn't repeated going forward. As to what he's paid already, he should be able to claim back the excess from SARS when he submits his tax return.

 

[diabolus]

Well in that case paying R1280 tax on R7115 is ridiculous. . .

What can one do in the situation?

It's 18% , that is the official tax rate, read all about it here:

http://www.sars.gov.za/AllDocs/OpsD...Trusts for 2013 and 2014 - External Table.pdf

 

[supersunbird]

It's 18% , that is the official tax rate, read all about it here:

http://www.sars.gov.za/AllDocs/OpsD...Trusts for 2013 and 2014 - External Table.pdf

But then shouldn't they just tax him for the amount over the rebate of R11 440 or in other words for the amount over R63 556 he w
ould get annually?

EDIT: His tax should be R3929.12 annually if the same amount of R7115.28 was received over 12 months.

Anyway, he will get a nice return when doing e-filing.

 

[KalMaverick]

It's 18% , that is the official tax rate, read all about it here:

http://www.sars.gov.za/AllDocs/OpsD...Trusts for 2013 and 2014 - External Table.pdf

PAYE should be calculated AFTER taking the rebate into account AFAIK.

Just based on a salary of R7115 his PAYE should be around R300.

EDIT: His tax should be R3929.12 annually if the same amount of R7115.28 was received over 12 months.

Anyway, he will get a nice return when doing e-filing.

Although it sucks he suffers from the rest of the year for that one return.