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Tax on variable monthly income?



My monthly salary varies as it is based on number of clients seen etc- does this affect the way PAYE is calculated? The PAYE I am getting charged is almost double the guidelines set out on the SARS table?

TaxTim TaxTim says:
3 December 2013 at 9:51

As you salary changes so you PAYE will because each month the earnings are annualized and then the tax is worked out by dividing the tax by 12. So if there is big swings in your salary then this will cause the PAYE to constantly change. You can ask your employer to obtain a SARS directive which will enable them to take the same amount of PAYE off each month to avoid this issue.

OB says:
3 December 2013 at 11:57

Thank you for your response! It is understandable that the amount of PAYE changes as the earned monthly amount changes, but then do the SARS table guidelines not count? Is the PAYE then calculated differently? For e.g. I was charged almost R10 000 tax on a R24 000 income this month?

TaxTim TaxTim says:
9 December 2013 at 8:53

That amount is very high and too much as per the table. Did you definitely only earn R24 000 this month?

OB says:
9 December 2013 at 9:01

Definitely! And when queried, the individual was unable to clearly and logically explain how he reached that amount. I have formally queried it using the SARS tables but can anything be done once the PAYE has been paid to SARS? Except maybe hope that it doesn't happen again and wait until tax returns are filed next year?

TaxTim TaxTim says:
9 December 2013 at 9:03

The worst that happens is that you have over paid and will be due a refund on this amount once you file your return next year. I would suggest asking your payroll officer for a breakdown and to see their calculation.

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