Is PAYE deducted on a basic wage or on a wage including provident contributions from the employer ?
By Marc Sevitz · Updated
I need a wage structure where the employer contributes 8% to a provident fund and the employee contributes 7. 5% to the same provident fund. How and when is PAYE deducted? Do you add the 8% to the basic wage and then deduct PAYE?
The employer contribution to a provident fund is not taxable in the hands of the employee so you can ignore that for PAYE purposes.
Very helpful.Thank you.
Only a pleasure!