Should I be paying tax?

It’s something we all wish we did not have to pay and it is one question  that comes up time and time again. There a many questions the average employee or even employer asks and many of them one would assume have obvious answers but tax does not have obvious answers and it is dangerous to hazard a guess when discussing tax and answering questions such as laid out below.

Question:

I earn a basic wage of R1720.00 per week and I have deductions.

My deductions are:

UIF = R17.00

Provident Fund = R111.00

Council Levy = R2.50

Union Fee = R14.05

Sick Fund = R25.80

Funeral Fund = R1.80

Should I be paying tax?

Answer:

R73,650 is the annual tax threshold for the current year and this means anyone who earns less than this will not pay tax.

R73,650 equates to R6137.50 a month or about R1416 per week.

If you earn R1720 per week this is above the weekly threshold and thus you quality to be taxed on the earnings value only. There could well be a few deductions that could bring the amount down and thus below threshold, all the deductions in the example above are tax deductions and the table amount will remain at R1720.

The answer to the question in a nutshell is that PAYE should be deducted from your earnings.

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