Call us now +233 244 1995 27
Notes to PAYE Computation
SSNIT (1st Tier):
This is the mandatory contribution of 13.5% of the basic salary of an employee and managed by SSNIT
Approved Trustee (2nd Tier):
This is also a mandatory contribution of 5 percent of the basic salary of an employee but managed privately by an approved trustee
Provident Fund (3rd Tier):
This is the amount of voluntary provident fund allowed by the GRA in determining the chargeable income of an individual. The rate for this must not exceed 16.5 percent
Final Tax on Bonus:
This is the tax charged on the total bonus up to 15 percent of the basic salary of an individual. Any amount in excess is added to the basic salary in determining the tax payable.
Final Tax on Overtime:
This is enjoyed by Junior Qualifying Officers - employees not having income exceeding Ghc9,600 per annum. The tax is charged up to 50 percent of the basic salary at a rate of 5 percent. Any amount in excess is charged at a rate of 10 percent.
This is the difference between the total bonus one receives and 15 percent of basic salary of the person
Total Assessable Income:
This is the sum of the basic salary, cash allowances, other allowances including non-cash benefits and excess bonus(if any)
This includes the mandatory contribution of 5 percent, the voluntary contribution not exceeding 16.5 percent and other deductible reliefs including dependency reliefs et al.
This is the excess of total assessable income over the total reliefs