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Gross Salary earned with no deduction?



Pjeb05 says:
3 September 2015 at 12:54

My employer only pays my salary on a gross basis, and does not deduct tax off my salary every month. He also hasn't given me an IRP5. How would I submit a tax return for this year? Should I approach SARS?

TaxTim TaxTim says:
3 September 2015 at 15:05

How much do you earn and do you work full time?

Pjeb05 says:
3 September 2015 at 15:09

Yes I work full time, earning about R300k per annum. Would my employer need to issue me with an IT3a rather than an IRP5?

TaxTim TaxTim says:
3 September 2015 at 15:26

Your employer is breaking the laws of the Income Tax Act by not withholding PAYE from you and paying it to SARS.
Your employer has a duty to pay over employee's tax on your behalf. There will be serious fines and penalties if he does not. If there are other employees earning above the tax threshold (R73,650 per annum) they should all be registered for tax and your employer should be registered for PAYE as well and be deducting tax from them and paying it to SARS.

Have you asked him why he does not deduct PAYE?

You should go to SARS with your payslips and bank statements and explain the situation to them. There may be penalties and interest due to underpayment of tax for the year though. You also need to bring the issue to the attention of your employer.

Pjeb05 says:
3 September 2015 at 15:40

Thank you for the information.

I have spoken to him about it and asked him to sort it out, which he has said he will.

I have decided that I will go to SARS in October if he hasn't sorted it out in September as he said would.

Would I personally be liable for fines and penalties with SARS? I have kept the money that is owed to SARS, which is all I can do in this situation really.

TaxTim TaxTim says:
3 September 2015 at 16:07

You will only know if you have a penalty and /or interest once you meet with SARS.
You can always explain the situation to them and request these to be waived.

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