Are you paying too much income tax because you do not know how to structure
your salary package when it comes to things like allowances and fringe
benefits?
Rob Nowicki says his company, PSIber Works, has launched what he claims to
be the country`s first truly web-based salary structuring tool, which can
help you find the most tax-efficient package. Known as PSIber Tax, the
programme can help you achieve the most tax efficient package structure.
Nowicki says the tax planning needs of ordinary people have generally been
ignored by the financial community `which prefers to service the country`s
top earners whose packages are very complex`.
Many people have not considered the tax implications of their cell phones,
car allowances, laptop computers, entertainment allowance, retirement
annuities and contributions to health and medical aid schemes.
PSIber Tax allows you to calculate various package options.
No knowledge of tax law is necessary because the site will ask you
questions and guide you through options that conform to the latest tax
rulings. Depending on your answers, the website will give you the tax
calculation or will prompt you for additional information.
`This makes it ideal for first time entrants into the job market who do not
know how to begin structuring their salary packages or employees who are
simply to shy to ask the human resources department for assistance,`
Nowicki says.
PSIber Tax works in conjunction with PSIber Assist - which consists of a
tax calculator, a loan amortisation facility and a company car versus car
allowance comparison engine. It allows you to structure up to 10 different
`what if` scenarios in one session. These 10 options can be viewed and
compared at the same time in a tabular summary format on the screen.
The tool is free at the moment but charges will be introduced in the second
half of this year. The cost of calculating 10 different scenarios will be
less than R50. You will be able to pay by credit card. The site uses
technology and random encryption and is exceptionally secure, says Nowicki.
Also, you don`t have to worry about privacy because, to complete the
calculations, PSIber tax does not need to know who you are. The only
information you need to enter to calculate the tax payable on the fictional
packages is your age.
If you want to revisit the package structure at a later date, you can do so
with the use of a unique password that you select. Look for PSIber Tax at
the following website address: www.psiber.co.za