Tag: tax calculation

Inflation is the increase in prices over a specific period and which leads to a reduction in the purchasing power of money. The correlation between inflation and purchasing power is important because sometimes we are fooled into thinking that just because an amount increased, like your salary, your purchasing power remains the same.

Most employees break out into a cold sweat when they see the PAYE amount on their payslips, not to mention that they are petrified in trying to understand these calculations. With some basic professional training with practical examples, understanding the basics of tax can easily be learnt with basic arithmetic.

When it comes to employee tax, a little training goes a long way towards restoring productivity. Many employees don’t understand the complex tax calculations payroll applies to their earnings each month and often question these deductions.

Not everything you hear about tax is true. There are many myths and misconceptions about payroll tax in South Africa that simply won’t go away. Let’s look at a few of them and what the tax and labour laws actually say. No matter whether your employer calls what it pays you a salary, overtime or commission, it is taxed at the same rate on the payroll according to the standard PAYE tax tables.