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Salary calculations - what is included?
Posted 22 April 2014
An employee gets a Travel Allowance - 80% of his salary (correct). He also needs to pay off a Staff Loan - R1,000 per month. Do you deduct the loan amount BEFORE taxes or AFTER PAYE & UIF? What is the correction calculation PLEASE.
TaxTimsays: 22 April 2014 at 11:09
The staff loan is independent of the PAYE and is a payment made to the employer. So this amount will be deducted after taxes, it will not affect the taxes owing based on his salary.