Performance bonus vs. gift voucher

[miriam790]

Hello there

I am not sure about the regulation if you pay performance bonus. If the team is reaching a monthly goal they get R500 each as a performance bonus. Where do I fill this in on the salary slip and how is it taxable? Or is it better to hand out a gift voucher for R500. Do gift vouchers be filled in on the salary slip as well?

Thank you

Miriam

[Beancounter]

Any form of income is taxable in terms of the definition of gross income in the Income Tax Act, whether paid in cash or otherwise. You calculate the monthly PAYE on the total monthly income according to the tax tables. If they get vouchers, it still has to be shown on the payslip and taxed accordingly. If it is a regular income it will be reflected against income code 3601 on the IRP5. If it is annual, code 3605 on the IRP5. What you name it on the payslip is irrelevant.