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:
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:
What’s been paid already this year (YTD)
What’s being paid in this pay run
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