Page 15 - Additional Notes on Employees Tax

Solution

(1) Determine the balance of remuneration for the year ended 28

February 2013:

 Salary.................................................................. R200 000

 Bonus...................................................................... 70 000

R270 000

 Less: RAF (s11(k) 30 000 ltd to the lessor of 350 000 = 29 167 or
27.5% x 270 000 = 74 250) ..…….... (30 000)

 Balance of remuneration ..................................... R240 000

 Rx = 240 000 x 75% = 180 000

 Ry Fixed monthly previous year = 200 000 – 30 000 = 170 000

 Ry < Rx – use deemed remuneration

(2) Apply the formula: Y = T/N

 = 240 000/12

 Deemed remuneration = R20 000 per month (for 2014)

 Calculate employee tax there on (R20 000 x 12 )… 15