Levy Department Calculations

Weekly Calculations

Weekly Gross Income minus Weekly Exemption multiplied by 2.5%.
E.g. Employee makes $250.00 per week for 4 weeks.

  1. $250.00-$125.00=$125
  2. $125* 2.5%=$3.13
  3. 3.13* 4=$12.52
Weekly Calculation over $1154.00 for 1 Week

Any amount over the $1,154.00 or any one (1) week is taxed straight by 5%, and the amount is added to the 2.5% ($25.73) portion to give you the amount that should be deducted for the levy for that particular week.

E.g.  Employee makes $1,200 per week for 3 weeks

  1. First you find 2.5% portion- $1,154-$125=$$1029*2.5%=$25.73 and
  2. Second you find 5% portion- $1,200-$1,154=$46*5%=$2.30 and
  3. Third you combined both totals- $25.73+$2.30=$28.03 (levy deduction for 1 week) and
  4. Fourth you multiply by the # of weeks worked- $28.03*3=$84.09.
Bi-Weekly Calculations

Weekly Gross Income minus Weekly Exemption multiply by 2 and then multiply by 2.5%.

E.g. Employee makes $600 every two weeks for 4 weeks.

  1. $600.00 -$250.00=$350.00
  2. $350 * 2.5%=$8.75
  3. $8.75 * 2=$17.50
Monthly Calculation

Monthly Gross Income minus Monthly Exemption multiply by 2.5%

E.g. Employee makes $1000 per month
$1,000.00 – $541.67=$458.33 * 2.5%=$11.46

Bi-Monthly Calculation

Bi-monthly is basically being paid ½ way in the month- Monthly exemption of $541.67 divided by 2 ($270.84).

E.g. Employee makes $500 every two (2) weeks for one month of 4 weeks.
$500.00-$270.84=$229.16*2.5%=$5.73*2=$11.46.

Monthly Calculation over $5,000 for the month

Any amount over the $5000 amount is taxed straight by 5%, and then the amount is added to the 2.5% ($111.46) portion to give you the amount that should be deducted for the levy for that particular month.

E.g. Employee makes $5,400 per month

  1. First you find 2.5% portion- $5,000-$541.67=$4,458.33*2.5%=$111.46 and
  2. Second you find 5% portion- $5,400-$5,000=$400*5%=$20.00 and
  3. Third you combine both totals- $111.46+$20.00=$131.46 monthly deduction.
Bi-Monthly Calculation over $2,500

Bi-monthly over $2,500 follows the same steps as monthly over $5,000 cause the $2,500 is half of $5,000.

E.g. Employee makes $3,000 on the 15th December his last working day after termination.

  1. First you find 2.5% portion- $2,500-$270.84=$2229.16*2.5%=$55.73 and
  2. Second you find 5% portion- $3,000-$2,500=$500*5%=$25.00 and
  3. Third you combined both totals- $55.73+$25.00=$80.73 bi-monthly deduction.
Days Calculation

The weekly exemption of $125 is divided by 5 (# of working days in a week) days in a week to get the exemption for a day ($125/5=$25.00).

E.g. Employee makes $60 a day for three (3) days in one week

$60.00 -$25.00=$35.00*2.5%=$0.88*3=$2.63 deduction for 3 days

Days Calculation over $230.80

The weekly exemption of $1154.00 is divided by 5 (# of working days in a week) days in a week to get the exemption for a day over $230.80 ($1154.00/5=$230.80).

E.g. Employee makes $300.00 a day for three (3) days in one week.

  1. First you find the 2.5% portion: $230.80-$25.00*2.5%=$5.15
  2. Secondly you find the 5% portion: $300.00-$230.80=$69.20*5%=$3.46.
  3. Then you combine both totals: $5.15+$3.46=$8.61*3=$25.83.
N.B. When employees are on sick leave the 40% portion that they are being paid is also taxable as long as it exceeds the exempted amount and then the necessary calculations steps should be applied.
Please be mindful that the Levy payments are due on or before the 14th of the following month for the current month or a penalty of 6 % is charged on the months outstanding.