Results 1 to 2 of 2

Thread: Salaries manually

  1. #1
    Email problem
    Join Date
    Nov 2011
    Location
    Hillcrest, KZN
    Posts
    17
    Thanks
    3
    Thanked 0 Times in 0 Posts

    Salaries manually

    Hi, I am needing to calculate salaries manually. Have not done this for a long time, I have the PAYE monthly deduction chart, so I am fine with that. What I need to calculate is the tax deduction for the use of a company vehicle which is used to and from work only and petrol is not included.
    They also have a RA and private medical aid, of which we pay the full amount, so if cost to company was eg. R 10 000.00, how would I calculate the deductions?

    Thank you

  2. #2
    New Member PayrollSmart's Avatar
    Join Date
    Jan 2013
    Location
    Gauteng
    Posts
    5
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Hi LGripper

    The motor vehicle fringe benefit is determined by taking the original cost of the vehicle excl any finance charges, interest or sales tax and including the VAT (value added tax) and applying 3.5% on it assuming that no maintenance plan is included in the purchase price. If a maintenance plan is included in the purchase price use 3.25%. Once you have the determined value you should then make a call as to what the taxable amount should be based on the 80/20 principle. If your employee maintains a logbook and remains out of the office 80% of the time then the taxable amount should be 20% of the determined value that will be subjected to tax. If the employee spends 80% of the time in the office then use 80% of the determined value as your taxable value.

    The amount paid over to the medical aid by the employer is fully taxable in the hands of the employee as it increases the employees remuneration. The employee will however receive a tax credit as approved by SARS to be R242 for the first adult and R162 for dependants thereafter.

    The greater of 15% of taxable income other than from retirement funding employment or
    R3500 less current pension fund contributions or
    R1750.
    Any excess amount is subjected to the following year of asssessment. Arrear retirement fund contribution maybe R1800 per annum. Any excess amt may be carried over to the next year of assessment.

    Hope this helps you.

    We provide professional payroll services. Check out www.payrollsmart.co.za for more information.

Similar Threads

  1. [Question] No Payroll with QuickBooks - how to record manually
    By Marce in forum Technology Forum
    Replies: 10
    Last Post: 10-Jun-16, 01:23 PM
  2. [Question] Non-payment of salaries
    By Adrian Partridge in forum Labour Relations and Legislation Forum
    Replies: 6
    Last Post: 03-Jan-14, 05:24 PM
  3. [Question] Salaries payments
    By GroenPikkewyn in forum Labour Relations and Legislation Forum
    Replies: 6
    Last Post: 20-Apr-12, 06:49 AM
  4. [Question] Non- payment of salaries
    By rankinauld in forum General Business Forum
    Replies: 1
    Last Post: 01-Apr-11, 04:16 PM
  5. [Question] CC's and salaries
    By Inprogress in forum General Business Forum
    Replies: 6
    Last Post: 18-Sep-10, 10:35 AM

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
  •