We’re pleased to announce that our clients and their employees can now see how their payroll will change in the new tax year. Payslips that fall in the 2010 / 2011 tax year will automatically meet the new legal requirements, while your payslips for the current tax year will still be calculated according to the current tax year’s rules, as you’d expect.
Here are the changes:
- New tax rates are implemented. All employees receive some tax relief in the coming tax year. Some examples:
- Those earning R 80,000 a year will save R 504.
- Those earning R 250,000 a year will save R 1614.
- Those earning R 750,000 a year will save R 3534.
- Travel allowances are taxed at 80% instead of 60%.
- Medical aid tax deduction increased:
- R 670 per person for the employee and the first dependant (was R 625).
- R 410 per person for each additional dependant (was R 380).
- Tax free portion of subsistence allowance was increased:
- R 276 per day for meals and incidental costs (was R 260).
- R85 per day for incidental costs only (was R 80).
We’ll keep you updated on other changes, such as the new EMP 201 format and process.