TAXABLE EARNINGS – Taxable earnings refer to all amounts included in your earnings that form part of the total amounts that are going to be subject to the SARS PAYE tax tables. These will include items such as basic salary, commissions earned, bonuses, overtime pay, taxable portions of travel, pensions, cellphone & so many other allowances. Other forms of income such as rental income received also forms part of your taxable income, however, rental income is not included on the payslip, since it is not earnings from remuneration, however, rental income will be included on the IRP5’s when a client is posting their annual personal tax returns at the end of the year.
NON – TAXABLE EARNINGS – This includes amounts earned but do not form part of your taxable income. Examples includes reimbursements for actual travel expenses incurred by an employee, Employment relocations allowances, Scholarships, Bursaries, Amounts received from tax free investments, Special Uniform Allowances.
GROSS EARNINGS – Gross income refers to all the total amounts earned.
GROSS DEDUCTIONS – Gross Deductions refers to the total of all taxes & any other deductions that eventually lead to the net pay as reflected on your payslip.
TAX DEDUCTIONS – On our payslip, this refers to the total tax deductions made against your taxable income. Usually these will be in the form of PAYE as well as UIF on a basic payslip. Please note that UIF is split between employee & employer contributions. The 1% is deducted from the employees salary whereas the other 1% is disclosed under employer contributions.
OTHER DEDUCTIONS – Other deductions refer to deductions made against your gross earnings, however, they are not for tax deduction purposes, examples of other deductions can be in the form of an example, a deduction made against your salary for the repayment of a salary cash advance or reimbursements for salary amounts erroneously deposited into your account by the employer.
COMPANY CONTRIBUTIONS. These refer to any company contributions made by the company for the benefit of employees or directors without an actual cash incentive to the employee or company director. Examples include the 1% statutory contribution made by companies towards UIF monthly contribution.
ADVANCES – Usually these are short-term loans made to employees & company owners that are usually deducted later from future salaries. They are usually tax free and form part of non-taxable income & deductions
ADVANCE REPAYMENTS – These are short-term loan repayments that are deducted later from an employee’s future salary but do not form part of taxable deductions.
