PAYE
PAYE (Pay As You Earn) refers to the tax withheld from employment income.
It is the obligation of the employer to withhold PAYE (if any) and remit to the Ministry office. Payment must be accompanied by the appropriate form which is Form 7. As an employer you must make the correct PAYE deductions from your employees' earnings including any benefits you provide, meet your filing and payment obligations with regard to PAYE.
If you do not lodge proper PAYE returns and pay tax due (if any), any salary and wage claim in your income tax return will not be allowed.
New Tax Rate - 1stJuly 2021
|
Gross Income |
Tax Rate |
|
$0 - $12,000 |
0% (Tax Free) |
|
$12,001 - $30,000 |
10% |
|
$30,001 - $50,000 |
15% |
|
$50,001 - $70,000 |
20% |
|
$70,001 and over |
25% |
1. PAYE Worksheet - 1st July 2021
Forms
As an employer are obliged to complete certain PAYE related forms.
- Monthly Tax Withholding Returns (PAYE form)
You must complete Form 7 and lodge it to the Ministry office. This form should list all your employees and their gross wage details for the relevant month and PAYE (if any).
- Withholding Tax Certificate
Within 14 days after the end of the financial year, you must provide each of your employees with a tax withholding certificate which is Form 4. This form should show the gross salary or wage earned by the employee in the year less the amount of tax deducted.
- Annual Tax Withholding Reconciliation (PAYE reconciliation)
This is the reconciliation of all the monthly PAYE returns lodged during the financial year which is lodged using Form 8. A complete PAYE reconciliation must have the form 8 together with a copy of the Form 4 of each employee you have. If you have 10 employees, you must lodge one Form 8 and ten Form 4s (one for each of your 10 employees).
