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I am a student under contract, now earning +R3250(basic), used to earn +/-R3000(basic).



I found that they made a mistake when calculating my hourly rate for 10 month, so I end up getting a back pay. When I received the back pay, it reached the salary tax scale. So my salary was tax. My question is that were they suppose to include my basic salary with the back pay? Or give me a cheque for the pay since I'm earning that small amount. Your immediate response will be appreciated. Thank you.

Cole says:
28 February 2013 at 8:43

I used to earn R3000 when I was suppose to earn R3250.50.This went on for ten months, The mistake was then rectified, that led me getting a back pay of R2505. To show you how I got to the amount:
R3250.50-R3000=R250.50X10(months)= R2505(back pay). The back pay was included on my salary on the following month, that caused my salary to be taxed.

My question is that, were they suppose to include the back pay(R2505) on my salary which is R3250.50 or pay me separate the by a cheque? Because when you add everything, my basic salary(R3250.50) + Back pay(R2505) + overtime(R1870)= R7625.50 will lead to my salary being taxed. The reason I'm asking is that, the back pay is part of the basic salary which was wrongfully calculated.

I was also adviced by a friend that I should go to HR and ask for IPR 5 and take it to SARS to claim the money that was taxed from my salary since HR is the one who made the mistake. I hope this time you can understand. Thank you

TaxTim TaxTim says:
1 March 2013 at 11:39

Each month the payroll administrator will calculate how much tax needs to be paid according to tables published by SARS. In a normal case where the employee earns the same amount each month the tables will show the same PAYE taken off. However in cases like yours where the amounts have changed the table may show a higher amount of PAYE for that month. This is because the tables are based on that amount earned in the month multiplied by 12 and using the actual tax tables as if you earned that amount for the year.

So yes you probably were over taxed, but it was not a mistake, and you must get the IRP5 and submit your tax return for 2013. You will then most likely get a big portion of the tax paid back as a refund.

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