Description

Employers have to deduct Pay As You Earn (PAYE) or employees’ tax from qualifying employee’s pay on a monthly, weekly or fortnightly basis.

The deduction is determined by using tables issued by South African Revenue Service (SARS). Employees’ tax has to be split between SITE and PAYE.

SITE is a form of employees’ tax that is applicable only to an employees’ net remuneration up to R60 000. SITE is determined at the end of the tax period, and may represent only a portion of the employees’ tax deducted during the year.

The balance of employees’ tax after determining the SITE portion, as well as the employees’ tax on remuneration that is not included in the net remuneration, represents PAYE.

Steps to follow

• Complete an application for registration (form EMP101) which is available from local SARS branch offices.
• Employers that are currently not registered with SARS for employees’ tax should register timeously in order to pay over employees’ tax from qualifying employees.

Legal framework

Income Tax Act, 1962 (Act 58 of 1962)

Service standard

There is no set time for the registration.

Cost

This service is free.

Forms to complete

(Forms are provided in PDF format. To open PDF documents, you need to have Adobe Acrobat Reader 4 or higher installed on your computer.)

Application to register for employees’ tax, EMP101

Contact details