29 March 2022 at 14:29
I received a total salary of R183477. 00 as from 01/07/2021 up to 29/02/2022. I would like to know how much PAYE was I supposed to pay. Take note I was working only for 8 months
29 March 2022 at 16:59
The PAYE calculated as a result is based on the employee's earnings and includes basic salaries, bonuses, fringe benefits and other allowances.
PAYE is calculated monthly and paid to SARS by your employer monthly, even if you are paid weekly / fortnightly. When your employer calculates your PAYE, your earnings get multiplied by 52 weeks, 26 weeks or 12 months (depending on how often you get paid) to get an annual amount, before being applied to the SARS tax tables to calculate annual tax. This is how you work it out:
Taxable income = Annual gross salary - Pension / Provident / RAF (limited to 27.5% of salary, limited to R350k) - 20% of travel allowance
(You are taxed on 80% of the travel allowance in your Gross salary, so we subtract 20% for the calculation of Taxable income.)
Taxable income = R 183,477.00 - R 0.00 - R 0.00
Taxable income for the year: R 183,477.00
Tax you will pay / PAYE (Pay As You Earn) for your age group and income bracket: R 17,311.86 (as per PAYE tables provided by SARS)
Take home pay = Gross salary - PAYE - UIF
(UIF / Unemployment Insurance Fund is levied at 1% of your gross income, at most R177.12)
Take home pay = R 183,477.00 - R 17,311.86 - R 1,834.77
Take home pay: R 164,330.37 per year :) Please make use of our SARS income tax calculator to work out how much tax you should have paid on that amount.