UIF = 1%, therefore R120.00 per month. Tax = R1598.33 assuming that the full 12000 is taxable. You don't state what percentage you have to pay towards the provident fund. Also, the provident fund deduction is not tax deductible like a pension fund deduction, however some organisations get round this by treating it as non-contributory fund and reducing your income by this amount, hence the rider about whether the full R12000 is taxable. Assuming that your contribution is eg 7% of your earnings your contribution would be R840pm, and on a non-contributory fund your earnings would then be reflected as R11160 and your tax would be R1388.33. Your UIF contribution in this case would also reduce to R111.60. Your marginal tax rate is 25% at that earnings level (R122001 to R195000 per annum), so if you need to play with different percentages for your prov fund you would work out the tax on the differences at 25%. Very important though, in order qualify for reduced taxable earnings because of a non-contributory prov, things must reflect correctly. If they show your full salary of R12000 and then a deduction for the prov you MUST pay tax on the full amount.
Source: 25 years in payroll/employee benefits. Tax tables in head!
59 mths ago