[Question] PASTEL PAYROLL TAX CALC

[Patsy]

I'm hoping that someone can assist me in explaining in laymen's terms why the PAYE Calc on Pastel Payroll differs from the actual Tax tables. On pastel it is hugely higher than the tables. Staff members tend to want to compare these and without a physical calc to explain to them how I get to these figures, I am totally lost!
The scenario is as follows:

a) Staff member resigned and has only worked 17 days of his last month of employment and the total amount to be taxed is R23 747.00. Pastel taxes him R4899.81 and the tax tables say R3861.00. According to the amount he should be taxed 18% but as Pastel has tried to explain it's because of the period worked that makes him fall into the next tax bracket which is 26%. Why fall into the higher tax bracket?
If there is a physical calculation to prove how to get to the payroll calc, please let me know, as this doesnt make sense at all. Why get taxed higher on a lesser amount? Or am i just not grasping this?

thanks,

[Christel]

Hi Patsy, Tax are always calculated on an annual salary. If you want me to do a tax computation for you in excel, then you can pm me.

[Patsy]

Hi Christel,

thanks so much for your feedback.
You have basically now confirmed what I had struggled with all afternoon after I had posted my question. I figured out that I needed to work this out based on the annual amount, therefore i took the income and x it by 12. Yip, correct, it falls then into the next tax bracket.

thanks again for your time!