1. What is PAYE in South Africa?

Definition: PAYE (Pay As You Earn) is the system used by SARS to collect income tax from employees' salaries each month.

Purpose: This calculator helps determine the monthly PAYE amount based on annual tax liability and available rebates.

2. How Does the PAYE Calculation Work?

The calculator uses the formula:

Where:

• \( PAYE \) — Monthly tax amount (ZAR)
• \( Annual\ Tax \) — Total annual tax liability (ZAR)
• \( Rebate \) — Available tax rebates (ZAR)

Explanation: The annual tax (after deducting rebates) is divided by 12 months to determine the monthly PAYE deduction.

3. Importance of PAYE Calculation

Details: Accurate PAYE calculation ensures proper tax withholding, avoids underpayment penalties, and helps with personal financial planning.

4. Using the Calculator

Tips: Enter your total annual tax liability and any applicable rebates. Both values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: What is included in annual tax?
A: This is your total tax liability for the year based on your taxable income and SARS tax tables.

Q2: What rebates are available?
A: Primary, secondary, and tertiary rebates as determined by SARS each tax year.

Q3: How often is PAYE calculated?
A: Employers must calculate and deduct PAYE from each salary payment (typically monthly).

Q4: What if my rebate exceeds my annual tax?
A: The calculator will show ZAR 0.00 as you would owe no PAYE in this case.

Q5: Where can I find current tax rates and rebates?
A: Visit the SARS website for the latest tax tables and rebate amounts.