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TaxTim 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! |
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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 . |
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TaxTim 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 |
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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 ? |
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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 |
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TaxTim 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? |
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Rosie says: 26 July 2012 at 14:30 thanks , that was spot on |
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