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Please I need help over this. I earn R4,500 while my brother earns R5,294 monthly. How are we supposed to be taxed. We dont earn any traveling allowance and also we don't earn any additional benefit of any sort.
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Hi
For your salary of R4,500 you do not pay any PAYE, same rule applies to your brother's salary of R5,294. You are both only liable for UIF. So your employer should deduct 1% of your salary towards UIF and they pay the other 1%. Interestingly, If your brother earned R4 more then he does, he would have to pay R1 PAYE per month. These thresholds change [minimally] every year and I have based the above on the rates applicable from the effective date of 01 March 2012. Hope this clears it up for you.
Elijah -
Hi Elijah,
many thanks for the clarification.
I saw something like SITE deduction from his pay slip, just wondering?
what is the threshold for both SITE and PAYE?
RegardsComment
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Hi
SITE is being phased out, think from March 2011. SITE was only applicable to those earning less than R60,000 p.a. And the amount of tax you had to pay [which was calculated on an annual basis] was standard [whether you earned R2,000 p.m or R4,000 p.m - so long as it was less than R60,000 p.a] for 2011[year-end], you would have to pay R540 for the year, for 2012 R45 [phasing out]. for 2013 [Nil]. So there should be no SITE deductions for salaries from March 2012. Hope this clarifies.Comment
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