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Registration of employees for tax or PAYE?



Hi Tax Tim
Do I need to register my employees for PAYE or for tax as they received only R3300 per month? How do I go about registering them for tax? What documentation do I need and do I need to go to the branch to fill it in?

TaxTim TaxTim says:
10 September 2013 at 17:27

You would need to register for payment of UIF for the employees, however no PAYE would be paid as they are under the annual tax threshold (R63 556 per annum for 2013). You can do this from the department of labour website.

Cindy says:
10 September 2013 at 18:03

Hi Tim
Thanks for your response, yes I did register them for UIF, but do they need a tax number - do I register them for tax?

Thanks

TaxTim TaxTim says:
10 September 2013 at 20:31

You do not need to register them for tax as they are under the threshold.

Cindy says:
11 September 2013 at 12:21

Hi Tim
Thanks for your reply but maybe I ask the question incorrectly. The minister said that everyone needs to register with SARS even the lower income group. The call center said everyone needs to be registered, but my accountant said it's not necessary so what now? I'm confused.

Do they need to register at SARS and what form is required?
Sorry for my ignorance.

TaxTim TaxTim says:
12 September 2013 at 12:02

When the tax known as SITE - Standard Income Tax on Employees was still applicable - this was the first R60 000's earnings, then all taxpayers had contribute to this as this amount was over the threshold. Now the threshold is greater than R60 000 and so SITE has been removed. So in that regard there is no need to register the taxpayer.

However if SARS conducts an audit of you and questions whether staff are legitimate or not, your employees having a tax number would be very strong evidence because you can provide this as proof.

The best would be to ask your employees to register themselves by following the link below:

How to get a SARS tax number

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