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Tax when working for different employers / independent contractor



Finnbot says:
6 April 2016 at 9:42

I am about to start 2 different half day jobs. In the morning I work for an organisation and in the afternoon I work for an individual. Should I expect the individual I work for to deduct PAYE or should I put it the PAYE amount away and pay it as personal income tax?

TaxTim TaxTim says:
6 April 2016 at 10:56

It all depends on whether you are viewed as an "employee" or an" independent contractor".
If you are an employee, then the individual should in fact deduct PAYE from you. If you are an "independent contractor" then in some circumstances you should be fully liable for your own taxes, while in others, your employer should deduct tax from you.

Work through our blog on Am I an Independent Contractor? to see what situation applies to you.

Finnbot says:
6 April 2016 at 10:59

Thanks so much for the feedback.

But what happens if they don't deduct PAYE? Must I make provision? Who's responsible? what could be the risk for me?

TaxTim TaxTim says:
6 April 2016 at 11:17

If you are effectively an "employee" you need to tell them to register as an "Employer" with SARS so that they can deduct PAYE from your salary and pay it over each month.

If they don't do this, then you need to register as a provisional taxpayer and pay tax on this income twice a year to SARS (assuming you earn above the tax threshold which is currently R75,000).
Please read our blog on What is Provisional Tax? How and when?
If PAYE is not deducted, then as long as you pay the provisional tax yourself, then there is no risk to you.

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