Calculating PAYE on a bonus payment involves a specific method to ensure accurate deductions. The bonus amount is added to the employee’s normal remuneration for the period and annualized. The total is then used to determine the appropriate tax bracket for the employee, based on the statutory tables provided by SARS. The tax is calculated on the annual equivalent of the total remuneration, and the resulting PAYE amount is deducted from the bonus payment. This ensures that the correct amount of tax is withheld on the bonus amount.