Non-Standard Employment

Where an employee is not required to work at least 22 hours a week for a certain employer, their employment will be classified as non-standard. In these instances, employees’ tax (PAYE) will be calculated at a flat rate of 25%. If an employee is in non-standard employment, you can set this on their Classification screen as described in the following article:

• Payroll Setup > Employee Setup > Employee Classification

Notwithstanding the above, PAYE must be calculated based on the normal tax tables, and not using 25%, if the employee:

• has furnished their employer with a written declaration that they will not render services for another employer for the duration of their employment; or
• is required to work at least five hours per day and earns less than R287 a day

More information on this tax calculation is available in the following article:

• Statutory Deductions and Contributions > Tax (PAYE)

Alternatively, if the employer has obtained a tax directive from SARS, employees’ tax will be calculated as indicated in the directive. Please see the following article for more detail on this concept:

• Tax Directives – Other