Mr ab is paid a monthly salary of R20 000 as well car allowance of R2 500. He belongs to company pension fund and contribute an amount equal of 7.5% his basic salary. The company does the same. He is also member of medical aid and his total contribution is 2100 of which the company contributes half.
Is the car allowance for use of a car or a travel allowance?
Stephsays: 18 February 2014 at 10:23
Its a fixed component so I guess it makes it a travel allowance?
TaxTimsays: 18 February 2014 at 18:12
You would add up the salary of R20 000 and the R2 500 and the full medical aid amount. You would then use this amount against the monthly PAYE tables and further to that subtract R242 from the PAYE owed given only one member on the medical aid.
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