What is PAYE (Pay-As-You-Earn)?
Income tax an employer deducts from employees' pay each month and pays over to SARS on the EMP201.
PAYE, also called employees' tax, is the income tax you withhold from salaries, wages, bonuses and other remuneration using the SARS tax tables. It is the employee's tax, but you as employer are responsible for deducting it correctly and paying it on time.
You must register with SARS as an employer once you pay anyone remuneration above the tax threshold. You declare and pay PAYE monthly on the EMP201, reconcile it twice a year on the EMP501, and give each employee an IRP5 or IT3(a) certificate.
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PAYE compliance