PAYE (Pay-As-You-Earn) is an Employee Tax. South African tax legislation requires that for all employees earning more than R3333.00 per month, the employer must deduct tax from such earnings and pay the tax over to the South African Revenue Service on a monthly basis.
  In order to be able to do this in a controlled and orderly manner, the employer (whether a sole proprietor, a partnership, a company or a close corporation) needs to be registered with SARS for such deduction and payment authority.
  Independent Contractors working for businesses under subcontractor agreements may be made responsible for their own tax payments. This can relieve the small businessperson of the onerous tasks involved in monthly PAYE administration. But the subcontractor arrangements must be bona fide and not a ploy to escape tax obligations. For more on this, please direct your query via our Q & A facility.
  Most businesspersons require the relative security of the employer-employee relationship and therefore opt for PAYE registration. To apply to register for PAYE, kindly make your request here.