Results 1 to 3 of 3

Thread: Will PAYE be less or more for a portion of the month than for full month?

  1. #1
    Silver Member
    Join Date
    Apr 2011
    Location
    Jhb
    Posts
    276
    Thanks
    105
    Thanked 14 Times in 10 Posts

    Will PAYE be less or more for a portion of the month than for full month?

    Hi,

    If an employer decides that an employee's gross salary is a specific amount on a monthly basis and the employee gets the benefit of a full month's salary when he/she starts employment later than the first day of the month will the PAYE be more or less than for a full month with the same gross salary?

    Ie. Say the employer decides that an employee will get R7,000 gross salary and the employee starts on 09/06/2013. Will the first month's PAYE be more or less than the second month because of the first month being from the 9th to the last day of the month (not full month) and the second month being from the 1st to the last day of the month (full month)?

  2. #2
    Junior Member
    Join Date
    May 2013
    Location
    Pinetown
    Posts
    16
    Thanks
    0
    Thanked 15 Times in 8 Posts
    No, it shouldn't be more during the first month.

    PAYE should be calculated on the expected yearly taxable income for employee tax purposes, and apportioned to each month.
    Whether the employee only worked 1 day in his first month or the full month shouldn't affect the calculated, but rather whether the salary received for the month is for 1 day's work or a full month's work.
    If the salary was prorated for only 1 day's work, then that 1 day's salary would be grossed up (x250? working days in a year) to a yearly salary (this should equal the expected yearly taxable income).
    If the salary was not prorated for only 1day's work, but relates to a normal full month, then that monthly salary would be grossed up (x12 months) to a yearly salary (should also equal the expected yearly taxable income).

    If the employer is nice, he will match the PAYE deducted with the expected tax the employee would pay (on the salary) for the tax year, and appropriately apportion the PAYE deductable for each month.

  3. Thanks given for this post:

    J7J (12-Jun-13)

  4. #3
    Silver Member
    Join Date
    Apr 2011
    Location
    Jhb
    Posts
    276
    Thanks
    105
    Thanked 14 Times in 10 Posts
    Thank you Mynhardt, I appreciate your response!

Similar Threads

  1. [Question] VAT - to be submitted on the 25th ie 23rd this month?
    By dellatjie in forum Tax Forum
    Replies: 6
    Last Post: 29-Nov-12, 12:26 PM
  2. BJ's Little Helpfull Program of the Month
    By bjsteyn in forum Technology Forum
    Replies: 11
    Last Post: 26-Aug-12, 09:32 PM
  3. Productivity month
    By Dave A in forum General Business Forum
    Replies: 5
    Last Post: 25-Feb-09, 05:59 PM
  4. T'was the month after Christmas....
    By Morticia in forum General Chat Forum
    Replies: 2
    Last Post: 07-Jan-09, 07:57 PM
  5. Your salary a month ?
    By Nourbous in forum Scam Alert Forum
    Replies: 4
    Last Post: 03-Jul-07, 12:15 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •