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Thread: PAYE / Income Tax

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    PAYE / Income Tax

    I currently have a fulltime job and earn a basic salary.
    But now also have another job (semi fulltime) and i spend less time on it.
    Each company will pay me separately

    How will i be able to do my Tax Returns and end of year if I have two jobs?

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    Silver Member geraldenek's Avatar
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    There is two options:

    1. Both companies will provide you with an IRP5 certificate with paye deducted. Just make sure with the combination of income that you don't fall in the next tax bracket and have to pay more money in the end of the tax year.

    2. If the 2nd company does not deduct PAYE you will need to look at your total income and then register for provisional tax and pay the difference in Aug and Feb each year.
    Geraldene Kapp
    Professional Tax Help
    www.mytaxhelp.co.za

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    Dear Geraldene,

    Thank you for the response.
    How can i tell what bracket i will fall into? The amounts are as follows:
    Current salary R17,047 gross
    New salary R3,000 gross

    Regards

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    Silver Member geraldenek's Avatar
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    on your current salary the tax is R2490.50 p/m
    on your new salary the tax is R0 p/m

    but if you combine the two the tax is R3263.68 p/m

    with the amount received from the "new" job i doubt that they will deduct paye and you will have to register for provisional tax and pay the difference of R4639.08 ((3263.68-2490.50)*6) on a bi-annual basis
    Geraldene Kapp
    Professional Tax Help
    www.mytaxhelp.co.za

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    Hi,

    This SARS thing is confussing.
    If I get it right, the r3k does not have tax as it falls below the "tax threhod"
    Why add it to the r17k then?

    Thanks

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    Silver Member geraldenek's Avatar
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    Because SARS looks at your combined income for the year where employers only look at the portion they pay to you and deduct that individual paye.

    But because SARS look at all your income you will be taxed on the full amount the R20k and if taxed on the R20k you have paid to little tax for the year as you only paid on the R17k. And that is why i said rather register for provisional tax.
    Geraldene Kapp
    Professional Tax Help
    www.mytaxhelp.co.za

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    Oh, now i see.
    Thank you so much, you habe been very helful my dear.

    Have a lovel evening

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    Hi,

    sorry, just last thing. the provisional tax registration...is registration only done in Aug & Feb?
    for example, we are now in Oct. will i have to wait until next Feb to register?
    Last edited by SSS100; 20-Oct-11 at 07:50 AM.

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    Site Caretaker Dave A's Avatar
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    You can register as a provisional taxpayer at any time - it's just that provisional tax returns (and payments) are only made in August and February.

    This probably is the best way to go, but in the interests of completeness there are a couple of other options.

    The one option is to ask your second employer to tax you as a part time employee - essentially that would be 25% of what they're paying you. This would probably get your PAYE total close enough to what you will owe when you do your tax return not to incur penalties. But you probably will have to pay some money in on assessment.

    The second option is to ask one or the other to deduct a voluntary PAYE contribution amount on top of what they are obliged to deduct from your earnings. However, if they're using payroll software, you might not be popular as I suspect it'll take a bit of fiddling to pull off without disrupting the calculation of normal PAYE due.
    The trouble with opportunity is it normally comes dressed up as work.

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    Noted, I will ask the 2nd employer to also deduct, then also register for prov tax

    Thanks Dave

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