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How to calculate P.A.Y.E & tax as on payslip?

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pcbuilders
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How to calculate P.A.Y.E & tax as on payslip?

Postby pcbuilders » December 5th, 2015, 7:42 pm

As the topic says. I am at lost on how to calculate P.A.Y.E & ta. Tried using the calculator on ttconnect website for PAYE but still don't understand how to calculate. TAX is never the same for same amount of hours worked. Any guidance on both would be highly appreciated

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby racedriverpro » December 5th, 2015, 9:37 pm

(Gross Salary - 5,000) X 0.25 = PAYE deductible. NIS deduction also varies with the number of Mondays each month.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby pcbuilders » December 5th, 2015, 10:36 pm

Hmmmmm. Thanks. A friend gross salary is 14000 but payslip deducted 3500 PAYE which doesn't make sense. However the job is two weeks work with two weeks home so i dont know if the PAYE calculations would differ due to this fact.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby pete » December 6th, 2015, 10:03 am

They ever did work for that company for the year before? Maybe they were on contract and did 4 months before, hit the 60k and now they taxing all the remaining wages.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby 10-01 » December 6th, 2015, 11:19 am

jus check any accountant they will sort u out ...

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby newby1 » December 6th, 2015, 12:44 pm

Go to this link to calculate your taxes, NIS & H/ surcharge. http://www.ttsalarycalculator.com/2014/ ... r.html?m=1

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby racedriverpro » December 6th, 2015, 8:24 pm

pcbuilders wrote:Hmmmmm. Thanks. A friend gross salary is 14000 but payslip deducted 3500 PAYE which doesn't make sense. However the job is two weeks work with two weeks home so i dont know if the PAYE calculations would differ due to this fact.

What about overtime and any other taxable allowance? 14000 -> 2500 PAYE

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby pcbuilders » December 6th, 2015, 8:24 pm

Used that calculator but gives a total different from what the company pays. Hence i trying to figure out how to arrive at the final figure to be paid by the mployer. Accounting department unwilling to help so that makes it more fishy and more reason to try and understand the deductions that should be made from a 14000 salary before deductions.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby equal2zero » December 6th, 2015, 9:45 pm

If they have deducted PAYE at $3,500 then it means they haven't taken out his personal allowance ($5,000) in arriving at taxable income.

It may be due to something along the lines of what pete said but accounting dep't needs to provide an explanation because its highly unlikely that he would have used up his full $60,000 personal allowance before the end of the year. It ought to be pro rated evenly based on how the employee is paid, e.g, if paid monthly, should be 60000/12=5000 per month). Has he worked for this company for the entire year?

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby racedriverpro » December 6th, 2015, 10:53 pm

Actually if u get paid 2 months salary in arrears at 5000 per month u will have to PAYE.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby pcbuilders » December 7th, 2015, 6:46 am

Thanks equal2zero for the explanation. This is actually his first month with the company.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby 88sins » December 7th, 2015, 8:38 am

calculating PAYE patyable can get a lil technical w/o further details, specifically, is the payee monthly paid or hourly rated.

Formula for monthly paid is as follows(using your gross provided & current rates/NIS & HS)

14000x12=168000
110.80x52=5761.6x70%=4033.12+60000=64033.12
168000-64033.12=103966.88x.25=25991.72/12=2165.98
so PAYE payable monthly would be $2165.98
Thus net salary for the month should then be (assuming a month with 5 Mondays here)
14000-554-41.25-2166=TT$11238.75

lemme kno if yuh need any further clarification op


PAYE for hourly rated employees could get a lil technical
Last edited by 88sins on December 7th, 2015, 8:40 am, edited 1 time in total.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby IdleMind2504 » December 7th, 2015, 8:39 am

did he submit his previous income?

I know alot of employers use that previous payslip with YTD, and it could be the previous employer did not do it correctly...lots of different scenarious...

also only the basic has the personal allowance, everything else is straight 25%

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby 88sins » December 7th, 2015, 8:43 am

IdleMind2504 wrote:also only the basic has the personal allowance, everything else is straight 25%


someone lied to you sir

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby Biggs3ne » December 7th, 2015, 12:29 pm

No TD1 submitted therefore the calculation is correct.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby pcbuilders » December 7th, 2015, 1:10 pm

It is hourly rated 88sins but the explanation is much appreciated.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby Slartibartfast » December 7th, 2015, 1:34 pm

Just make sure you friend holds on to ALL of their payslips for the year so that they can properly apply for tax returns at the end of the year.

I had a friend that was hourly paid and they used to over tax him every month. When he got is TD4 and he did his tax returns he was only liable to get bake like $125 even though by his estimates he was overcharged taxes by about $5,000 for the year. After looking at his last paycheck it seemed very likely that his company was trying to shaft him but with no previous payslips as proof he couldn't do anything.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby 88sins » December 7th, 2015, 6:03 pm

No problem op
But keep in mind, when caculating PAYE that way i posted there you would not have any outstanding taxes payable in for the respective yr. Wont have any kind of a refund to claim for either. At the extreme most it might work out to be maybe a $2-3 payable/receivable when filing.

What i does do for me personally is intentionally over pay the PAYE. So if i have to pay 100/month, i just pay 200 instead. So the next year i get a nice refund. Then i invest that refund in an annuity that allows a tax relief the following year to increase my non taxable allowance.

It have plenty places that deducting incorrect PAYE from ppl salaries. Often a bit less but more often far too much. I kno a girl some time ago, her gross per month was someting like 3800/month. She had no BIR number and never thought to file a return. And her employers was still deducting PAYE from she salary. Iirc was abour 180-190 or sumn like dat. I end up callin their hr dept for the girl to find out wtf really was goin on an end up threatenin to take action. Is only then they stop that shite. And this is a company with over 800 employees, most of whom salaries were not eligible to pay PAYE tax, and they were doing this sheit to everyone.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby eXamin » February 3rd, 2016, 8:33 am

Question: For a person who recently got employed at a company, their YTD is not yet $60,000 are they entitled to pay income tax(PAYE)?

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby Dizzy28 » February 3rd, 2016, 9:06 am

If they are on a contract where their income will exceed the Allowances within the calendar year ($72,000 from Jan of this year btw) the employer will generally start deducting PAYE in accordance with yearly calculations i.e. This is how one of those outsourced HR companies do it for our company.

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Re: How to calculate P.A.Y.E & tax as on payslip?

Postby eXamin » February 3rd, 2016, 9:56 am

Dizzy28 wrote:If they are on a contract where their income will exceed the Allowances within the calendar year ($72,000 from Jan of this year btw) the employer will generally start deducting PAYE in accordance with yearly calculations i.e. This is how one of those outsourced HR companies do it for our company.


Thanks for clearing that up.

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