Our Customer Experience team receives hundreds of queries on a daily basis and one of the most popular themes contentiously centres around Pay As You Earn (PAYE). SimplePay’s aim is to keep you compliant and what better way to give you peace of mind than to host a webinar series that explains in-depth how our system calculates PAYE.
While Income Tax is the tax that individuals pay on their total earnings for the year and originates from various sources (salaries, rent income, etc.), PAYE is a method of collecting the Income Tax on your employment earnings.
Customers sometimes question why an employee has to pay PAYE using the annual equivalent method when they only worked one month in the tax year and therefore fall below the Income Tax threshold. SARS has two methods of calculating PAYE (periodic and annual equivalent) but the annual equivalent method is the method SARS uses on assessment. SimplePay uses this method too, as it is more accurate in cases where employees have fluctuating income. This also limits discrepancies in the PAYE liability due to SARS, ensuring a smoother reconciliation.
Every effort is made to ensure that SimplePay is compliant with SARS guidelines and that our PAYE calculations are in line with how SARS expects PAYE to be calculated. Our team is regularly in touch with SARS and the Payroll Authors Group of South Africa (PAGSA) to ensure that any legislative changes made are updated on the system accordingly.
“Why is this employee’s PAYE liability so much?” and, “why do my figures for PAYE and SimplePay’s differ?” are often questions we receive so we thought it would be useful to go through this in detail in a 3-part webinar series on PAYE.
Our webinar will be hosted by Brandon and Darren, who will cover the following topics over the course of the webinar series:
Ep 1: Basic PAYE calculation for regular income
Tuesday, 5 July at 11h00
Ep 2: PAYE calculation with irregular income
Tuesday, 12 July at 11h00
Ep 3: PAYE calculation with fringe benefits, allowances, taxable income deductions and tax credits included
Tuesday, 19 July at 11h00
If you’re unable to attend one (or more) of these webinars, or you would like to refer back to them for future reference, you can visit SimplePay’s YouTube channel here. You can also visit our YouTube channel if you’re interested in learning more about any of the other payroll webinars we have hosted.
As always, we encourage those joining us to interact with the SimplePay team so if you have any questions relating to the topic, please do share them with the team during the course of each session!
We look forward to seeing you soon!
If you have any other questions regarding the webinars, please send them through to [email protected]. For any questions relating to PAYE, you’re also welcome to get in touch with our Support team at [email protected].