EDF submitted employee not taxable

In the illustration below, the employee submitted an EDF in July. However, in August, since his exemptions exceed his emoluments, the employee is not taxable.

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 and is a Citizen of Mauritius
• Step 1: Check the Emoluments for the month, for example: Salary, Overtime, and Taxable Transport.
• Step 2: Check the Total emoluments paid in previous months. In this example refers to the July emoluments, since the PAYE Calculation Checklist is for the month of August.
• Step 3: Ensure that the employee’s Reliefs and Exemptions are correctly applied according to their EDF.
• (0 * 2 / 13) + 0 + (0 * 1) are illustrated via 3(a-c) and correspond to the following:
• 3a → 0 indicates that the EDF was submitted with only the self exemption.
• 3b → 2 corresponds to August, which is the 2nd month of the fiscal year.
• 3c → 13 represents the fiscal year running from July to June, which includes 13 months because of the end-of-year bonus.
• Step 4: Ensure that the Chargeable Income corresponds to the difference between the total emoluments (including taxable benefits) and the less reliefs and exemptions.
• Step 5: Check the Tax Charged (PAYE) from the Tax on Progressive Scale table.
• Step 6: Check the Tax paid in previous months. In this example, it refers to the tax for July, since the PAYE Calculation Checklist is for August.
• Step 7: “Tax to be withheld in the month” represents the difference between the Tax Charged (PAYE) from the Tax on Progressive Scale table and the tax paid in previous months. In this example, since the Tax Charged (PAYE) is lower than the tax paid in previous months, the employee is not taxable.