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Tax on performance bonus

Posted 20 August 2012 under Tax Questions


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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.
e.g.
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?

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TaxTimTaxTim 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.


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