Getting a Salary vs Invoicing the Company?
By Marc Sevitz · Updated
The owner prefers me to invoice him for my services at the end of the month. My question relates to what the tax implications will be with this? The remuneration is R120K per year and will be paid monthly.
Does this require me to act like a small business? And is the tax payable more or less in this case?
Thanks for your time
This cannot happen as you will be a full time salaried individual and the employer needs to deduct PAYE each month. They cannot get around this.
Thank you for the reply.
Just to clarify, it is a very small business with only two employees and one director. does this make a difference? Is there no other way of declaring PAYE myself?
Just to clarify, it is a very small business with only two employees and one director. does this make a difference? Is there no other way of declaring PAYE myself?
Unfortunately not, if you are deemed an employee which it sounds like you are then the business has a responsibility to deduct PAYE and pay it over to SARS.