=========PAYE Calculation Checklist – Housing Benefit 10%===========


The following illustration shows the PAYE Calculation Checklist for the month of August for an employee who benefits from tax-on-tax and receives a taxable housing benefit. In this example, the accommodation is unfurnished, therefore the housing benefit is calculated at 10%.
According to the Income Tax Act, a housing benefit is considered taxable when an employer provides accommodation to an employee. The taxable value of the accommodation depends on the following:
•	15% of the employee’s total emoluments if the accommodation is furnished
•	10% of the employee’s total emoluments if the accommodation is unfurnished

Follow the steps below to verify the PAYE Calculation Checklist:

  * Check the **Pay Period**: In this example, the PAYE Calculation Checklist is for the month of August
  * Check the section **"Your PAYE Particulars"**: In this example, the employee has submitted an EDF, is a Citizen of Mauritius and benefits from tax on tax.

  * Step 1: Check the **Emoluments for the month**, for example: Salary, Overtime, Project Allowance and Commission.

  * Step 2: Check the **Total emoluments paid in previous months**, which in this example refers to the July emoluments, since the PAYE Calculation Checklist is for the month of August.
  * Step 3: Tax benefit
  * Step 4: Check the **Housing benefit** which is calculated at 10% of the Total emoluments, since the accommodation is unfurnished therefore, the amount is added to the employee’s emoluments.
  * Step 5: Check the **Total emoluments including taxable benefits** which comprises of the Emolument of the month, Total emolument of previous month and the Housing benefit.
  * Step 6: Ensure that the employee’s **Reliefs and Exemptions** are correctly applied according to his EDF.
  * ** (110000 * 2 / 13) + 0 + (0 * 1) ** are illustrated via 6(a–c) and correspond to the following:
  * 6a → **110,000** shows that an EDF was submitted in August with a total exemption of Rs 110,000.
  * 6b → **2 ** corresponds to August, which is the 2nd month of the fiscal year.
  * 6c → **13** represents the fiscal year running from July to June, which includes 13 months because of the end-of-year bonus.

  * Step 7: Ensure that the **Chargeable income** corresponds to the difference between the Total emoluments (including taxable benefits) and the Less Reliefs and Exemptions.
  * Step 8: Progressive scale
  * Step 9: Tax on Tax
  * Step 10: Check the **Tax paid in previous months, ** which in this example refers to the July tax, since the PAYE Calculation Checklist is for the month of August.
  * Step 11: ** “Tax to be withheld in the month” **represents the difference between the Tax Charged (PAYE) and the tax paid in previous months.