PAYE Guide for Tax Practitioners and Employers

This Hub contains the most recent issue of this guide, which is currently the 2022/2023 issue.

Every employer that is charged with the responsibility of paying salaries and as a result, responsible for withholding and paying employees’ taxes, should know the detail requirements, exceptions and workings of this tax system.

ProBeta Training offers a guide for employers where all of this information may be accessed in one place – from the basics of PAYE right down to submission and payment.

The guide is based on current legislation as promulgated and SARS guidance as published up to the end of February each year, and is aimed at assisting employers to successfully discharge their duties in respect of employees’ taxes for the relevant year of assessment.

The following elements are included in the guide:

  • A summary of the normal tax tables, thresholds and rebates applicable to individuals and companies.
  • Defining the three elements of employees’ tax: Employers, Employees and Remuneration – this includes a coverage of standard employment as well as the various exclusions from the definition of an employee.
  • Registration and recordkeeping requirements for employers, including separate registration for UIF, SDL and the Compensation Fund.
  • Amounts taken into account for determining remuneration subject to employees’ tax, including all allowances and fringe benefits, leave and overtime pay, gains and dividends from employee share schemes, retirement benefits and compensation pay-outs.
  • Amounts exempt from normal taxes and in consequence not accounted for as remuneration for employees’ tax purposes, including bursaries and foreign employment income.
  • Deductions allowed from remuneration in determining employees’ tax, such as fund contributions, donations and medical credits.
  • Determining the annual equivalent for a full tax year, periods shorter than a full tax year and periods shorter than a full payroll period.
  • Employer responsibility towards submitting returns and reconciliations for employees’ taxes.
  • A summary of tax directives and the rules regarding the use thereof.
  • Coverage of the interest and penalty provisions for non-submission or late payment, as well as the dispute resolution process for employers.
  • Other employment related matters:
    • Employment Tax Incentives
    • National Minimum Wage requirements
    • Unemployment Insurance Fund
    • Skills Development Levy
    • Compensation Fund
    • Leave requirements in terms of the BCEA
  • A full list of the relevant IRP5 codes is also provided in the guide for quick reference.

Please note that this guide does not include elements applicable to employees only, where it doesn’t affect the employer and the withholding of PAYE.