Page 51 - P6 Slide Taxation - Lecture Day 7 - Various Topics

Employees tax

Employees’ tax must also be withheld in respect of :

• lump sum benefits paid in terms of a divorce order (this employees’ tax is

determined in terms of a directive issued by the Commissioner in terms of
par 9(3) and is deducted from the employee’s benefit or the minimum
individual reserve), and

• remuneration paid to an employee who is married but which is taxable in

the hands of the employee’s spouse in terms of s 7(2). The liability for
employees’ tax on such an amount is that of the employee’s spouse. For
example, if the excessive salary paid by Employer B to the wife of Mr A

must be included in Mr A’s income in terms of s 7(2), Employer B must
deduct employees’ tax from the salary paid to Mrs A in respect of the ‘fair

salary’ (Mrs A’s liability) and in respect of the ‘excessive salary’ (Mr A’s
liability).

If a person receives remuneration from more than one employer, the

employees’ tax calculation of remuneration earned from each employer
must be done separately .

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