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I earn R8500 and have never been registered at SARS, my boss says I don't need to, is this correct?

Posted 31 October 2012 under Tax Q&A


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I earn R8500 a month, which is the most I've ever earned. My boss keeps my salary low because he says that way I won't pay tax. I am so ignorant. Am I breaking the law or is my boss? SARS doesn't know I exist. Would I be fined? I don't have any savings stored up either. It's not that I did this on purpose. If I register it'll jeopardize my job. In fact, everyone working for him isn't registered with SARS. Isn't there a form you're supposed to have at your place of employment so the government can know about this? My boss says I earn too little to get taxed. Is he right?

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TaxTim TaxTim says:
21 October 2012 at 0:21

Firstly you are earning enough to pay tax as the minimum threshold is R63 556 per year and so your boss should be deducting PAY-AS-YOU-EARN each month and paying that over to SARS. You should also be registered as a taxpayer as you are salaried.

If your boss isn't informing SARS of your existence and not paying over your PAYE then in theory they do not know about you, but at some point they will. Your boss is acting against the laws of the Income Tax Act and has a duty to pay over employee's tax on your behalf. There will be serious fines and penalties if he does not and you can get into a lot of trouble as well. All the staff earning over the threshold need to be registered and your boss needs to be registered as well.


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