Salary calculations - what is included?

By Marc Sevitz · Updated 22 April 2014

An employee gets a Travel Allowance - 80% of his salary (correct). He also needs to pay off a Staff Loan - R1,000 per month. Do you deduct the loan amount BEFORE taxes or AFTER PAYE & UIF? What is the correction calculation PLEASE.

TaxTim Marc said:
22 April 2014 at 11:09

The staff loan is independent of the PAYE and is a payment made to the employer. So this amount will be deducted after taxes, it will not affect the taxes owing based on his salary.

Salary / IRP5

Independent Contractor