Tax on performance bonus

Every quarter, we receive a performance bonus. this is worked out as a percentage of monthly salary. so if i earn R10 000 and my percentage was 50%, then I would receive R5 000 on top of my salary.
There was a discrepancy last quarter where the %'s used to calculate the bonus were incorrect and
they went ahead and paid the incorrect amounts out.
Monthly earning - R10000
% suppose to have been paid - 50%
% actually paid - 60%.
difference of 10% = R1000 paid extra to me.
total supposed to have been earned - R15000
total actually earned - R16000
the following month, they deducted the difference (R1000) from my salary.
my question is this: i paid tax on that difference. how would this be corrected?

This entry was posted in Tax Q&A and tagged , . Bookmark the permalink.

TaxTim TaxTim says:
13 August 2012 at 17:10

The reduction in salary in the next month would have reduced the employee's tax paid over to SARS. Depending on when you get paid, be it quarterly, monthly or annually your PAYE (PAY-AS-YOU-EARN) is calculated based on that amount.

So because you are paid monthly yours will be worked out each month and if there are any differences month to month they will be taken into account in determining your PAYE so you shouldn't be overpaying in your taxes in the month where they deducted the extra R1 000.

Submit your tax return right here!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.