Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,194,412 members, 7,954,644 topics. Date: Saturday, 21 September 2024 at 04:23 AM |
Nairaland Forum / Nairaland / General / Career / How Is Paye Calculated For Someone Working Overtime (12740 Views)
Understanding Personal Income Tax (Direct Assessment, PAYE) / How is minimum wage calculated? / Know your PAYE/ Personal Income Tax (2) (3) (4)
Re: How Is Paye Calculated For Someone Working Overtime by makkosky(m): 11:30am On Mar 13, 2022 |
TheDemola: You will remove Tax relief from gross income to arrive at Taxable gross. |
Re: How Is Paye Calculated For Someone Working Overtime by TheDemola: 11:50am On Mar 13, 2022 |
Osyxcel: How is this adjustment made? |
Re: How Is Paye Calculated For Someone Working Overtime by Osyxcel(m): 12:44pm On Mar 13, 2022 |
TheDemola: In my opinion, the best way to approach this is to add a percentage (not too high or low) of the overtime earned monthly to the monthly tax payments. Then towards the end of the year, say Nov/Dec, the gross emolument (i.e salary, allowances, bonuses & overtime) received till date should then be recalculated. The tax should be calculated based on the new information and adjustments should be made. 1 Like |
Re: How Is Paye Calculated For Someone Working Overtime by engrzico(m): 3:34pm On Mar 13, 2022 |
No, only pension is deducted @8%. mrphysics: |
Re: How Is Paye Calculated For Someone Working Overtime by engrzico(m): 3:39pm On Mar 13, 2022 |
Thank you for your time. Please what is the New method. I think that's where I need more clarification. mrphysics: |
Re: How Is Paye Calculated For Someone Working Overtime by TheDemola: 4:24pm On Mar 13, 2022 |
Osyxcel: Let me use this to calculate if I was overtaxed last year then. Thanks |
Re: How Is Paye Calculated For Someone Working Overtime by TheDemola: 4:25pm On Mar 13, 2022 |
makkosky: Ok, thanks |
Re: How Is Paye Calculated For Someone Working Overtime by mrphysics(m): 8:50am On Mar 14, 2022 |
engrzico:Except if your firm (depending on location) has implemented the new method backed by the 2020 Financial Act. The difference isn't even much because the government is trying to reduce the taxable income. So basically, the 20% that is deducted from the gross is only made when you subtract the Non taxables (NHF, Pension, and the 200k too, etc) See the attached and ignore my writing. 2 Likes
|
Re: How Is Paye Calculated For Someone Working Overtime by mrphysics(m): 8:56am On Mar 14, 2022 |
engrzico:The problem is that HRs or Finance Managers make some assumptions during tax filings. And the systems are not built in such a way to send the tax receipts to individuals whose PAYE were paid for. So you don't know the assumption your HR or finance manager made. He/she may have included the Pensions, NHIS, etc. For state like Lagos, they remove also the Economic Development Levy. Let me know if you are still unable to calculate your PAYE. The attached images above is enough to compute your PAYE. But its not very straightforward. We are building an automated tax filing platform for some states and we have designed it that upon successful PAYE payment, each employer will receive via email a PAYE certificate with which same individual will use to apply for TCC at the end of the year if they so wish. |
Re: How Is Paye Calculated For Someone Working Overtime by engrzico(m): 8:40pm On Mar 14, 2022 |
Thank you boss. mrphysics: |
Re: How Is Paye Calculated For Someone Working Overtime by Rubyjade: 11:31am On Mar 16, 2022 |
mrphysics:Nice one |
Re: How Is Paye Calculated For Someone Working Overtime by SMJay: 7:44am On Jun 16, 2022 |
mrphysics:Are you sure about this calculations |
Re: How Is Paye Calculated For Someone Working Overtime by mrphysics(m): 8:14am On Jun 16, 2022 |
SMJay:Very sure |
Re: How Is Paye Calculated For Someone Working Overtime by SMJay: 2:07pm On Jun 16, 2022 |
mrphysics:kindly look at the graduated table, is it not supposed to be 111k of 11% the answer you get(12210), you add it to 21k to get your annual PAYE |
Re: How Is Paye Calculated For Someone Working Overtime by Oyindamolah: 12:51pm On Jun 23, 2022 |
mrphysics:My accountant says it wrong |
Re: How Is Paye Calculated For Someone Working Overtime by mrphysics(m): 1:05pm On Jun 23, 2022 |
Oyindamolah:Yeah, I posted the image for old method of computation. It should be 11% on the remainder, that is 11% * 111k = 12210 + the 7% on 300k Which gives you the total. |
Re: How Is Paye Calculated For Someone Working Overtime by mrphysics(m): 1:11pm On Jun 23, 2022 |
Oyindamolah: |
Re: How Is Paye Calculated For Someone Working Overtime by mrphysics(m): 1:24pm On Jun 23, 2022 |
Oyindamolah: |
Re: How Is Paye Calculated For Someone Working Overtime by mrphysics(m): 4:15pm On Jun 23, 2022 |
SMJay:Yeah, I just realized that I posted the picture for the old method. |
Re: How Is Paye Calculated For Someone Working Overtime by Rubyjade: 5:04am On Jul 17, 2022 |
Bank reconciliations The Old Approach • Cheques and other clearing instruments • Uncredited cheques • Dishonoured/bounced cheques • Unpresented cheques • Stale cheques • Bank statements are not received until the end of the month. • Bank charges are only discovered after receiving bank statements. • Surprising debits and credits on the bank statement. As a result, the bank reconciliation procedure is long, arduous, confusing, and monotonous, with bank statements and bank GLs rarely being on the same page. The New Approach • Internet Banking • Instant transfers • Monitoring of bank statements in real-time • Real-time knowledge of bank fees • Direct bank statement upload into accounting software • Immediate recognition of unusual transactions As a result, reconciliation statements have been nearly eliminated, with bank ledgers and bank statements always agreeing online in real-time. In all my years as a CFO, I have not had a single reconciling item. Let us discuss if your company is not (completely) doing things in the new way. Credit: Ajibola Jinadu FCA,FCCA,FMVA® |
Abia Polytechnic Sacks 258 Workers / 6 Proven Ways To Negotiate A Higher Salary / How Women Are Locked Out Of Nigeria’s Construction Industry
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 24 |