How tax is calculated in Metarelic People

At Metarelic People, we help you stay compliant by automatically calculating and withholding Pay-As-You-Earn (PAYE) income tax according to Grenada’s laws. Here's how it works:

Tax Brackets in Grenada

Income tax in Grenada is progressive, meaning higher income is taxed at higher rates:

Annual Income Range

Tax Rate

$0 – $36,000

0%

$36,001 – $60,000

10%

Over $60,000

28%

Our Tax Calculation Approach

We use a cumulative annualised method. This means tax is based on your employee’s income for the whole year, not just this pay period.

We look at:

  1. What’s been paid already this year (YTD)

  2. What’s being paid in this pay run

  3. What’s expected for the rest of the year (projected)

Using that, we estimate total annual income, apply the tax brackets, and prorate the annual tax amount across each pay run.

Example: Fixed Monthly Salary

  • Employee earns $6,200 every month

  • Total projected annual income = $74,400

  • Tax due annually = $6,432

  • So, we deduct $536 per month

If their income doesn't change, the tax stays the same each month.

What Happens If Income Changes?

💰 A Bonus or Extra Earning (e.g. $1,000 in August)

  • The extra income is added on top of the projected base salary

  • We apply tax brackets from where the base left off

  • For example, the full $1,000 might be taxed at 28% → $280

📉 A Drop in Salary (e.g. due to unpaid leave)

  • We recalculate the new annual projection

  • If projected income drops below a tax threshold, we reduce the tax withheld accordingly

Why You May See Tax Changes

  • Salary was updated during the year

  • Bonuses or overtime were added

  • The employee’s pay schedule changed (e.g. monthly → weekly)

  • Manual adjustments to earnings

We ensure the total tax paid across the year is accurate, even if monthly deductions vary.

Fully Automated, Always Compliant

You don’t need to do any calculations manually. Our system:

  • Applies the correct tax brackets

  • Handles one-time earnings

  • Supports changes in salary and frequency

  • Adjusts automatically throughout the year

Need Help?

If you're unsure about a specific tax deduction or how it was calculated:

  • Check the Tax Breakdown in the employee’s payroll record

  • Or contact our support team from within your dashboard