Definition of PAYE

• Tax Consultant Gavin Bacon gives us a layman's definition of PAYE or Pay As You Earn tax.

• Definition of PAYE
  This is Tax Consultant Gavin Bacon's "unofficial" definition of Pay As You Earn, or PAYE: It is the amount of tax that is deducted from your salary on a monthly basis and paid over to the South African Revenue Services. It is NOT your final obligation to SARS.
  
  Who needs to pay PAYE?
  If you earn more than R120 000 per year and / OR you have more than one income (such as a second job or receive rental income or receive interest income) or you run your own business, then you have to register with SARS and get your own tax number. Then once a year you have to file your Annual Tax Return with SARS. It's like a double check that your employer has been deducting the correct amount of tax where applicable. PAYE is a way for SARS to get their money on a monthly basis out of you instead of waiting until the end of the year... All seem a bit much for you? Or do you have questions - simply call / email us and we will gladly assist you.