A Taxing Problem For Part-Timers

RECENTLY I learned that tax officials at the Ministry of Finance are not distinguishing between part-time and full-time employees when determining the tax to be paid by employees to the Receiver of Revenue.

This is despite the fact that employees’ tax deduction tables stated in the PAYE 10 Vol 16 require them to distinguish the two, especially for income earners above N$40 000. According to the employees’ tax deduction tables stated in the sicument, the percentage applicable to part-time employees is 17,5 per cent.And this seems to be regardless of the employees’ income.Meaning that if you earn N$50 or N$2 000 or a million a month, the percentage applicable should be 17,5 per cent, as long as you are classified as a part-time employee as defined on page two in the document.But tax officials have the perception that part-time workers are only those who earn low-income or below N$40 000 and that part-timers who earned above N$40 000 should be subjected to the percentages as outlined in Table F, which range from 29,5 per cent to 35 per cent.One ‘big employer’ who always applied Table E or the 17,5 per cent tax rate to calculate its part-time employees’ tax deductions has recently stopped doing so and started using table F with corresponding percentages as indicated in that table.And this was prompted by some of its part-time employees who demanded to know from their employer why their tax calculations differed significantly from those of the Receiver.And the difference came about because the ‘big employer’ calculated the tax deductions at 17,5 per cent while the Receiver calculated the payable amount at a rate of between 29,5 per cent and 35 per cent for part-time workers, resulting in the employees owing the Receiver.In order to avoid similar future occurrences and to help its temporary staff from being inconvenienced by underpayment, this ‘big employer’ is now taxing its part-time employees as if they were full-time employees.This is unfair because since the tax officials claim that they are not aware of your status, whether part-time or full-time, you will never recover the difference you would have had should you have been taxed as a part-time employee in the first place.Those paid less than N$3 333,33 per month are not affected as the rate for full-time employees is also 17,5 per cent.But if you are earning above N$3 333,33 a month or above N$40 0000 a year and you are working part-time, you must revisit your tax deductions as you might be charged 29,5 per cent or 34,5 per cent or 35 per cent instead of only 17,5 per cent.Himuvi Mbingeneeko WindhoekAccording to the employees’ tax deduction tables stated in the sicument, the percentage applicable to part-time employees is 17,5 per cent.And this seems to be regardless of the employees’ income.Meaning that if you earn N$50 or N$2 000 or a million a month, the percentage applicable should be 17,5 per cent, as long as you are classified as a part-time employee as defined on page two in the document.But tax officials have the perception that part-time workers are only those who earn low-income or below N$40 000 and that part-timers who earned above N$40 000 should be subjected to the percentages as outlined in Table F, which range from 29,5 per cent to 35 per cent.One ‘big employer’ who always applied Table E or the 17,5 per cent tax rate to calculate its part-time employees’ tax deductions has recently stopped doing so and started using table F with corresponding percentages as indicated in that table.And this was prompted by some of its part-time employees who demanded to know from their employer why their tax calculations differed significantly from those of the Receiver.And the difference came about because the ‘big employer’ calculated the tax deductions at 17,5 per cent while the Receiver calculated the payable amount at a rate of between 29,5 per cent and 35 per cent for part-time workers, resulting in the employees owing the Receiver.In order to avoid similar future occurrences and to help its temporary staff from being inconvenienced by underpayment, this ‘big employer’ is now taxing its part-time employees as if they were full-time employees.This is unfair because since the tax officials claim that they are not aware of your status, whether part-time or full-time, you will never recover the difference you would have had should you have been taxed as a part-time employee in the first place.Those paid less than N$3 333,33 per month are not affected as the rate for full-time employees is also 17,5 per cent.But if you are earning above N$3 333,33 a month or above N$40 0000 a year and you are working part-time, you must revisit your tax deductions as you might be charged 29,5 per cent or 34,5 per cent or 35 per cent instead of only 17,5 per cent. Himuvi Mbingeneeko Windhoek