Arbitration Award Taxation R100,000
By Marc Sevitz · Updated
Arbitration Award of R100000, HOW MUCH MUST I BE TAXED?
What circumstances led you to receive the award? i.e. what was the nature of the dispute?
The Employer suspended me unfairly then I took them to CCMA and then we negotiated and agreed on a full and final settlement amount equivalent to 5 months salary.
Your employer will have to disclose the nature of the settlement to SARS when they apply for a tax directive. SARS will examine the details of the case and tax accordingly. Based on the details you have provided, it seems likely that the award will be added to your normal salary and taxed per the normal tax tables (at your marginal rate).