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Basic Salary Below Threshold + Extra Commission Earned
Posted 30 October 2013
I earn a basic salary that falls under the threshold (R5000 pm) but then earn commission which bumps it up over the threshold. Now this commission can vary, from R500 to well over R1000. How do you calculate this per month, as each month will fall into a different bracket (referring to the SARS monthly tax deduction tables). Do we simply look at the total amount and deduct the applicable tax applicable in that bracket each month?
TaxTimsays: 31 October 2013 at 9:50
Yes, unless your employer applies for a tax directive which will state the exact percentage that is deducted from the commission each month.