Casual / Part-time Employment | South Africa Tax Guide
PAYE must be deducted at a rate of 25% in respect of all employees who:
- Work for an employer for less than 5 hours per day (i.e.22 hours per week) - OR-
- Who work for an employer without reference to a period
Examples:
- Workers employed on a daily basis, who are paid daily and whose remuneration exceeds R75 per day.
- Casual commissions paid e.g. spotters fees
- Casual payments to casual workers for irregular/occasional services
- Fees paid to part-time lectures
- Honoraria paid to office bearers of organisations / clubs
Exemptions:
If an employee works regularly for less than 22 hours per week and provides the employer with a written undertaking that they do not render services to any other employer, then they will be regarded as being in standard employment and tax must be deducted in accordance with the appropriate weekly or monthly tables.
An employee who is in standard employment (i.e. works for one employer for at least 22 hours per week).
Pensions paid to pensioners
Commission agents not in possession of a tax directive (i.e.tax must be deducted according to the appropriate tax tables unless the South African Revenue Service has issued the agent with a specific and current tax deduction directive)
If an employer employs part time / casual employees they are required to issue the employee with an IRP5 certificate when their services are terminated. Where however, regular use is made of an employee and the employer and employee agree, a tax certificate (IRP5) need only be issued at the end of the particular year of assessment. The tax deducted must be reflected as PAYE on the certificate as the income earned is not regarded as being 'net remuneration'.
No employees tax is required to be deducted from the remuneration of a full time student / scholar who is employed on a casual basis unless the remuneration will exceed the tax threshold for the relevant year of assessment. This provision does not however apply to a student / scholar who works for more than 5 hours per day as they are deemed to be in standard employment and will be subject to the deduction of SITE/ PAYE in accordance with the appropriate tables.