Non-Standard Employment

Where an employee is not required to work at least 22 hours a week for a certain employer, their employment will be classified as non-standard. In these instances, employees’ tax (PAYE) will be calculated at a flat rate of 25%. If an employee is in non-standard employment, you can set this on their Classification screen as described in the Employee Classification help page.

Notwithstanding the above, PAYE must be calculated based on the normal tax tables, and not using 25%, if the employee:

• has furnished their employer with a written declaration that they will not render services for another employer for the duration of their employment; or
• is required to work at least 5 hours per day and earns less than R 383 a day

More information on this tax calculation is available in the Tax (PAYE) help page.

Alternatively, if the employer has obtained a tax directive from SARS, employees’ tax will be calculated as indicated in the directive. Please see the Tax Directives – Other help page for more detail on this concept.