PAYE not paid by Employer

JPBez

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#1
Hi, my emolyer never registered me for PAYE at SARS, but has been deducting Tax from my salary for 2 years since I've worked for his company. What are my options and what will the outcome be if reported to Department of Labour?
 

LazyLion

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#2
You will have to pay over your tax to SARS or you will be penalised.
You must also report your employer. They will be fined for non compliance.
There really is no other way out of this.
 

Steamy Tom

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#3
how do you know they never registered you? and do you know if they in fact have been withholding that tax rather than paying it to sars?
 

Kosmik

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#4
You will have to pay over your tax to SARS or you will be penalised.
You must also report your employer. They will be fined for non compliance.
There really is no other way out of this.
You can also raise a case of fraud as they took the tax off your salary.
 

signates

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#7
Hi, my emolyer never registered me for PAYE at SARS, but has been deducting Tax from my salary for 2 years since I've worked for his company. What are my options and what will the outcome be if reported to Department of Labour?
I think you have it wrong. The employer does not register an employee for PAYE. The company would be registered for PAYE and deduct PAYE from employees irrespective if the employee is registered for tax and pay this over to SARS.

What proof do you have that they have not paid over the monthly PAYE to SARS? Did you ever receive an IRP5 in previous years? Did you register with SARS for a tax number? Did you check with SARS if you have a tax number. Have you checked your income tax return on efiling?

Before assuming that your employer has done something illegal you will need proof of this and check your IRP5 certificate. Your very first sentence indicates that you don't know the PAYE process and the obligation of the employer and employee.
 

Daruk

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#8
Hi, my emolyer never registered me for PAYE at SARS, but has been deducting Tax from my salary for 2 years since I've worked for his company. What are my options and what will the outcome be if reported to Department of Labour?
Go to SARS and explain to them why's has been happening and see what they can do. Do you have pay slips from them showing the deductions?
 

signates

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#9
Go to SARS and explain to them why's has been happening and see what they can do. Do you have pay slips from them showing the deductions?
Op needs to get more information before making unsubstantiated claims.

First incorrected assumption is that the employer is required to register the employee for PAYE.

Also sars, PAYE and tax related issues gets reported to SARS and not department of labour.
 

Daruk

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#10
Op needs to get more information before making unsubstantiated claims.
What unsubstantiated claims are those? That they've been deducting PAYE from his salary?
First incorrected assumption is that the employer is required to register the employee for PAYE.
That's semantics... potato potato.
Also sars, PAYE and tax related issues gets reported to SARS and not department of labour.
Not sure why you're suggesting I said anything about department of labour... reported to SARS? You mean like I suggested?

To be clear I'm suggesting he have a conversation with SARS about it. Been there, done that, took years to sort out - my advice is based on experience and stands.
 

signates

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#11
What unsubstantiated claims are those? That they've been deducting PAYE from his salary?
That's semantics... potato potato.
Not sure why you're suggesting I said anything about department of labour... reported to SARS? You mean like I suggested?

To be clear I'm suggesting he have a conversation with SARS about it. Been there, done that, took years to sort out - my advice is based on experience and stands.
That they never registered op for PAYE. Employers don't register employers for PAYE.

Op mentioned reporting his employer to the department of labour.

It's not semantics if he doesn't know how the PAYE and tax process works.

Only fact op stated is that he's employer is deducting PAYE.

How does he know that they are not paying it over to SARS?

Did op receive an IRP5 last year?

My advice comes as a tax practitioner where majority of employees has no idea how the process works and expects that the employer registers them for PAYE.

An employee is NOT registered for PAYE by an employer.

An employee is responsible for his own tax affairs and registering with SARS for income tax and to provide his employer with this income tax number.

An employer who employs staff must register the company for PAYE and deduct PAYE from its employees as per the tax tables and pay this over to SARS irrespective wherever the employee has a tax number or not.

Op is clearly confused as to what the process entails and what each party's responsibly are.
 

Daruk

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#12
That they never registered op for PAYE. Employers don't register employers for PAYE.
Semantics

Op mentioned reporting his employer to the department of labour.
OK so unrelated to the post you quoted.

It's not semantics if he doesn't know how the PAYE and tax process works.
He doesn't need to be a tax expert to talk to SARS and get it from the horses mouth.

Only fact op stated is that he's employer is deducting PAYE.
Right, which is why, if he suspects SARS hasn't been receiving it, he should talk to them about it since he is liable for tax on his income.

How does he know that they are not paying it over to SARS?
Not sure, how I knew was when it came time for my annual return, they had no record of it.

Did op receive an IRP5 last year?
Unlikely if he thinks they haven't paid.

My advice comes as a tax practitioner where majority of employees has no idea how the process works and expects that the employer registers them for PAYE.
right, exactly why he should talk to SARS.

An employee is NOT registered for PAYE by an employer.
Irrelevant in the circumstances really.

An employee is responsible for his own tax affairs and registering with SARS for income tax and to provide his employer with this income tax number.

An employer who employs staff must register the company for PAYE and deduct PAYE from its employees as per the tax tables and pay this over to SARS irrespective wherever the employee has a tax number or not.

Op is clearly confused as to what the process entails and what each party's responsibly are.
On the contrary, he wants to resolve it. Best advice? Talk to SARS.
 

signates

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#13
Semantics

OK so unrelated to the post you quoted.

He doesn't need to be a tax expert to talk to SARS and get it from the horses mouth.

Right, which is why, if he suspects SARS hasn't been receiving it, he should talk to them about it since he is liable for tax on his income.

Not sure, how I knew was when it came time for my annual return, they had no record of it.

Unlikely if he thinks they haven't paid.

right, exactly why he should talk to SARS.

Irrelevant in the circumstances really.


On the contrary, he wants to resolve it. Best advice? Talk to SARS.
In my phone so can't really split my reply as I would like.

First point of call would be to ask the employer for an IRP5. If they then give him the runaround then it's a clear indication that there might be an issue. Actually, if op has an efiling profile and tax number, his IRP5 will already be prepopulated even if the employer does not have his tax number. The IRP5 gets matched to the tax number and ID number of the employee. This is however not always the case as I have come across instances where the SARS matching did not work and the taxpayer had to manually enter the IRP5 on their tax return.

I wouldn't first resort to reporting them to SARS if there was no attempt to seek clarity from the employer first.

All that op has stated is that PAYE is deducted. No indication of how he came to the conclusion PAYE is not being paid over to SARS.

He also thought that his employer needs to register him for PAYE.
 

signates

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#14
Looks like op is another one hit wonder that's not coming back to give clarity on his incomplete first post.
 

Daruk

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#16
In my phone so can't really split my reply as I would like.

First point of call would be to ask the employer for an IRP5. If they then give him the runaround then it's a clear indication that there might be an issue. Actually, if op has an efiling profile and tax number, his IRP5 will already be prepopulated even if the employer does not have his tax number. The IRP5 gets matched to the tax number and ID number of the employee. This is however not always the case as I have come across instances where the SARS matching did not work and the taxpayer had to manually enter the IRP5 on their tax return.

I wouldn't first resort to reporting them to SARS if there was no attempt to seek clarity from the employer first.

All that op has stated is that PAYE is deducted. No indication of how he came to the conclusion PAYE is not being paid over to SARS.

He also thought that his employer needs to register him for PAYE.
I didn't suggest reporting anyone to SARS. I suggested talking to SARS. It's his tax compliance that's at risk. What they do about his company is neither here nor there for him. That conversation will end all speculation and give him the first steps for anything he needs to do to be compliant.
 

signates

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#18
I didn't suggest reporting anyone to SARS. I suggested talking to SARS. It's his tax compliance that's at risk. What they do about his company is neither here nor there for him. That conversation will end all speculation and give him the first steps for anything he needs to do to be compliant.
Look at his first post.

He starts by claiming his company did not register him for PAYE but had been deducting PAYE every month.

He then moved on to wanting to report them to the department of labour.

That's the only info the op has provided.

He made an unsubstantiated claim without any facts. His priority seems to be to report his employer without first establishing the facts.

Unless the employer is hiding anything, I would really suggest to first request the IRP5 from the employer. There's no point to first go to SARS. The employer must provide the IRP5.
 

signates

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#19
He came in at 12 today. Give the guy the benefit of a couple days at least.
He was online till a few minutes ago. The questions posed are simple enough for a quick reply.

Did they provide him with an IRP5 for the previous tax year?

Is he registered with SARS for income tax?

Does he have an efiling profile?
 

Daruk

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#20
Look at his first post.

He starts by claiming his company did not register him for PAYE but had been deducting PAYE every month.

He then moved on to wanting to report them to the department of labour.

That's the only info the op has provided.

He made an unsubstantiated claim without any facts. His priority seems to be to report his employer without first establishing the facts.

Unless the employer is hiding anything, I would really suggest to first request the IRP5 from the employer. There's no point to first go to SARS. The employer must provide the IRP5.
Talking to SARS will yield the same results. Sounds like the relationship with the employer is not too hot. I'd just go to SARS.
 
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