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How much tax am I going to pay each month?

Posted 30 July 2012 under Tax Questions



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Employee earns 10500 per month
Medical aid - 1630 ( member + 3 dependants )
Pension - 7.5 %
Pension Company - 9.5%
Uif - 1%

How much tax would employee be paying monthly, please insert the formula as well?

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TaxTimTaxTim says:
26 July 2012 at 12:50

Can you tell me if the R10 500 includes the medical aid? Does your employer pay for this? We also have a salary tax calculator at - https://www.taxtim.com/za/SARS-income-tax-calculator.php

Have a look it explains the formula as well!


Rosie says:
26 July 2012 at 13:00

Hi

10500 is total earning
deductions - 1630.00- med aid
787.28- pension fund
121.27 - uif

---------------------------------------------------
company pays same amount for medical aid and 9.5 % pension

Thanks Nadia

I have tried using the calculator , but the answer i got wa not the same as on the employees payslip.
And would like to see the formular expecially once the medical aid credit comes in .


TaxTimTaxTim says:
26 July 2012 at 13:15

Based on the information you have given me, the calculation should be the following:

R10 500 - 787.28 - 1 630 (although you have 4 members you cannot claim more than your actual expenditure) = R8 082.72

Taxable Income = R8 082.72 *12 = R96 992.64 per year

R96 992.64 *18% = R17 458.68 - R11 440 (primary rebate) = R6 018.68

Monthly tax payable = R6 018.68/12 = R501.56 (PAYE)

UIF will only be R10 500 * 1% = R105 per month


Rosie says:
26 July 2012 at 13:22

where does the medical tax credit come in ?

I am not sure what you mean by this "although you have 4 members you cannot claim more than your actual expenditure"

thanks

the tax on employees payslip is 319.71 ?


Rosie says:
26 July 2012 at 13:25

and should the uif not be 10500 + the company portion of the m/aid x 1 % ?

10500 + 1630 x 1 % = 121.27

thanks


TaxTimTaxTim says:
26 July 2012 at 13:38

That was my final question, the medical aid amount is in addition to your R10 500, my answer above was based it being a part of the amount, so for a final answer this will be the formula:

R10 500 + R 1 630 = R12 130 (Income)
R12 130 - R787 = R11 342 (Taxable Income)

Tax (PAYE) on that amount is R1 088 per month

Your medical tax credit works that for the first two members you receive a R230 per month credit against the R1 088 you owe in PAYE. For all other members you receive R154 per member. So for your 4 members you will receive an overall credit of R768.

So your PAYE will be R1 088 - R788 = R320
You will also have UIF of R12 130 *1% = R121.30

I hope this makes more sense?


Rosie says:
26 July 2012 at 14:30

thanks , that was spot on


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