Additional Voluntary Tax lets you deduct an extra tax amount from an employee's salary in addition to their normal Pay As You Earn (PAYE). This can help the employee pay more tax during the year and reduce a possible tax shortfall at year-end.
The system adds the voluntary tax amount to the employee's PAYE during payroll processing.
Flag employee for Voluntary PAYE over-deduction
Go to Employees on the main menu.
Select the employee.
Open the Tax tab.
Tick the Voluntary PAYE over-deduction field.
Update Fixed payslip values
From the Employee tab, select the employee you want to update.
Select Fixed payslip values.
Select Add Deductions and search for Additional tax under Existing pay component.
Select the checkbox next to the Additional tax pay component, then select Add.
Confirm the pay component appears in the list, enter the Amount.
Then select Save.
Read the confirmation message and select Continue to apply the change to future pay runs.
Review an example
An employee requests an additional tax deduction of R300 per month:
Calculated PAYE: R1,850
Additional Voluntary Tax: R300
Total PAYE deducted: R2,150