PAYE is the system through which employers withhold employees’ tax from remuneration and account for it to SARS. Good payroll compliance starts with correct employee information, appropriate tax treatment of remuneration and benefits, accurate payroll records and timely employer submissions.
Why PAYE deserves attention
PAYE is not simply a month-end deduction. Employers should consider the tax treatment of salaries, allowances, fringe benefits, retirement-fund contributions and other remuneration items as part of an integrated payroll process.
Practical focus
Employers should maintain reliable payroll records, review employee tax information, reconcile payroll totals and address discrepancies before statutory filing deadlines.
This article is a general overview and not a substitute for advice on a particular employee or payroll arrangement.