Please could some one advise what is the correct way of calculating employee PAYE if that person is on a 6 month contract.
I did the following as I know SARS will use the full 12 months to determine Annual PAYE...but the employee says I am deducting to much from her.

Am I correct see calculations:

Your total tax due each month is there for calculated on

Basic : 7500.00
Allowance: 8000.00
H/all 2/3 : 8333.33
Cell/all: 2000.00

TOTAL SUM: 25 833.33

PAY CALC

25833.33 x 12 =309999.96

59 000 + (28% of the amount exceeding 300 000)

59000 + 28% x 9998.96
=59000 + 2799.71
TOTAL PAYE / annum : 61799.71
Per month 61799.71/12 = 5149.98 Rounded therefor 5150.00 exactly as reflected on your payslip.

I can unfortunately not run the allowance as non-taxable, you will be penalised for it at the end of the tax year. As the allowance is non -reimbursive allowance


That was my reply to employee regarding PAYE and a allowance that she want structured on her salary as Non-taxable

Please advise