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Chantelle_ZA

Negative tax - how to pay employees

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Hi everyone 

With our incomes being substantially affected by the recent ending of a contract, a few employees who were earning well now have negative tax amounts on the payslip. 
example: R8,000 gross, -R2,000 tax, payslip total R10,000

My boss says he will only pay R8000 and we can claim the negative tax back from SARS. I’ve told him that employees won’t be able to claim it back as the payslip (and IRP5 as well) shows we were paid R10,000 but he says we can deal with that if it’s an issue in the future. 

What do you suggest I do please? 

  • 0

    Good day, 

    Thank you for the post. 

    The tax credit is reflecting due to the fluctuation in taxable income, and a lessor taxable income was processed on the system. The tax calculation will be correct based on the year to date values processed on the system.

    I can only advise that you consult with a tax practitioner to explain the outcome of the example supplied in your post and advise the best solution forward.

    Kind regards

    Gerhard. 

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