PAYE on bank charges refund

[r196]

Hi I have a question please,

If you paid your employee late and you want to refund him on bank charges for debit orders that couldn’t go off, how would you show that on his payslip.

Say for instance there is more than one employee and you want to give them all say R500 extra how much of that would be PAYE taxable? I suppose all of it unless it can be proven by the employee?

Thanks

[Mike Simmonds]

Welcome to the forum.

I would treat this as a re-imbursive expense, as there is normally no way that the employees would be able to claim this as a deduction. However then it would have to be the actual amount that the bank charged the employee.

[geraldenek]

Hi r196

I agree with mike - get the right amounts and re-imburse them the amount and put this amount under code 3714 on the IRP5.

[r196]

Thanks

I thought so, but employer want to give everyone R1000 and not tax it... difficult as she is doing salaries herself.

Thanks a lot will speak to her again. Really appreciate your help!!