We have the following issue that we need some assistance with: The employer pays normal salaries, as well as meeting fees to employees who attends a meeting every other month. A decision was taken to only deduct 25% PAYE from the meeting fee, in order to
Important:
This answer is based on tax law year ending 28 February 2018.
Answer:
The amounts that accrue to the employees in respect of the meetings attended, also accrue in respect of services rendered. Consequently, it is ‘gross income’ and remuneration as defined in paragraph 1 of the Fourth Schedule to the Income Tax Act. The fact that it doesn’t accrue in terms of the contract of employment, is irrelevant. If not salary, it would be a fee or emolument.
Code 3713 can’t be used because it is not an allowance. The question is not whether two IRP5’s must be issued. The employer must add all the items of remuneration together when the balance of the remuneration is calculated for purposes of the determination of employees’ tax.