At the end of the day the liability for the payment of PAYE rests with the employee. The employer is only required to withhold the tax and to remit it to SARS on behalf of the employee. The employee may very well be at risk if the employer deducts insufficient PAYE.
How do employers use PAYE?
Setting up payroll
- Register as an employer with HM Revenue and Customs (HMRC) and get a login for PAYE Online.
- Choose payroll software to record employee’s details, calculate pay and deductions, and report to HMRC.
- Collect and keep records.
- Tell HMRC about your employees.
What are the responsibilities of an employer under PAYE?
The Employers responsibilities under PAYE Scheme Keep in safe custody the documents relating to every payment made to employees. Remit to the Commissioner General every tax deduction made under PAYE Scheme during a month, not later than the 15 th day of the month immediately following.
What do you need to know to set up PAYE?
Decide what type of employee you need. Check you can afford to take on employees. Make your workplace safe and accessible for employees. Register as an employer and set up PAYE. Check your responsibilities around workplace pensions. Get Employers’ Liability insurance.
Is the employer responsible for paying payroll taxes?
Payroll taxes (are those taxes you have to consider when you pay employees, so they depend on your payroll. Some of these taxes are withheld from employee pay, and others are your responsibility as an employer. The term ” withholding ” means that you are deducting these payments from employee paychecks,…
What do you need to know about PAYE and payroll?
Payments and deductions. When paying your employees through payroll you also need to make deductions for PAYE. Payments to your employees include their salary or wages, as well as things like any tips or bonuses, or statutory sick or maternity pay.
