PAYE tax: when to pay and how much?

By Marc Sevitz · Updated 16 April 2013

I work on a contract basis(Service Level Agreement) for a company, I only do contract work for them and no other company. I get paid per service rendered and working hours are anything from 6 to 14 hours a day, 5 to 6 days a week. My salary differ each month ranging from R14 000 to R35 000. They do not supply pension, medical fund, travel allowance or fuel. All expenses are for my own account.(Study fees, professional body registration fees included) The company know wants to register for PAYE and deduct an amount from my "salary". What are the procedures and why can I not still do my own taxes? Regards

TaxTim Marc said:
16 April 2013 at 21:36

You will still complete your own ITR12 income tax return, but the company will deduct PAYE as you are deemed to be an employee under the Income Tax Act and so they will need to deduct PAYE based on the tax tables. In effect they will deduct as if you have no deductions and then when it comes to do your tax return you will complete these deductions and in most instances receive a refund.

Salary / IRP5

Independent Contractor