|
Rapula says: 16 May 2019 at 19:16 Can a bonus and an arbitration award backpay be added on one source code? The employer added the arbitration award backpay for 2014 to 2017 august under one source code of bonus. What is the impact are the two taxed in the same way? |
|
TaxTim says: 17 May 2019 at 9:05 Bonus and backpay should not be added on one source code. Under which source code was the bonus and arbitration award recorded? The source code for the Arbitration award is 3608 (taxable) and 3609 (non-taxable). An arbitration award for backpay will be added to your total taxable income for the year. The source code for bonuses is 3605. Your bonus amount simply becomes part of your total taxable income for the year, which may impact your tax bracket, i.e. the percentage of tax you pay on your income. The amount of tax withheld in your bonus month depends on which method your company uses to calculates tax. Please refer to our blog on How to calculate tax on your bonus for examples illustrating tax on bonus. |
Do Your Tax Return Easily