What is PAYE?
Where an employer pays remuneration to an employee, the employer must deduct employees' tax from the remuneration and pay the tax deducted to SARS on a monthly basis. In most instances, the employer is obliged to issue each employee with an employees' tax certificate (IRP 5) which reflects, amongst other detail, the employees' tax deducted. This employees' tax has to be split between SITE and PAYE.
SITE is a form of employees' tax that is applicable only on the annualised net remuneration up to R60 000.
