PAYE - DEFINITIONS AND CONCEPTS

Employees' tax is an advance payment against the liability for income tax at the end of the year.

The employer withhold the tax on a monthly basis and pay this over to SARS on the 7th of the following month.

An employer is any person who needs to pay or is liable to pay any person by way of remuneration.

An employee is defined as follows:

* Any person who receives any remuneration

* Any labour broker

* Any personal service provider (PSP)

* Any director of a Private Company / or member of a Closed Corporation


Independent contractors are excluded from remuneration.


Using a payroll to calculate your employees' tax and issue IRP 5 and IT 3(a) certificates.