The impact of taxation on employee performance in provincial departments of North West Province

Abstract

The purpose of the study is to assess the impact of taxation on employee performance in provincial departments of North West. Performance of employees has worsened and employees show less commitment to work tasks. Organisations are faced with employee performance challenges which affect its productivity, quality of work and task completion. The study used a mixed methods methodology to establish the observations. A self-administered questionnaire was utilised as a data collection instrument consisting of closed-ended questions and open ended interview questions. The study found that employee performance in provincial departments is significantly affected by high taxes. Furthermore, a low take home salary results in low staff morale and affects employees' basic needs. The results show that participants are knowledgeable about taxation matters and how SARS taxes employees according to different tax brackets. Employees are unhappy with SARS tax rates. As a result, the study recommendations are that employees should be motivated to work due to a passion for their job and making a valuable impact in government and not be motivated through receiving high salaries.