PAYE overpaid - must the employer or SARS pay to employee?

[J7J]

Hi,

An employee's services has been terminated at the end of January 2012 on Pastel Payroll, with a nil salary for January 2012. Pastel Payroll has now recalculated the PAYE (as it does when an employee is terminated) for the period and a negative PAYE balance is now showing on this payslip for January 2012. Should the employer reimburse this PAYE to the employee? Or do you wait until this individual is assessed for the 2012 tax year and then SARS will refund this overpayment?

Kindly assist.

Thank you!

[Jarred Welby-Cooke]

Hi,

Is there leave to be paid out? And if so has it been paid?

[J7J]

Hi,

No leave to be paid out...

[Dave A]

If the income for the year is low enough to qualify for SITE only, you're going to have to reimburse the employee. Otherwise it's optional I guess.

Personally I'd refund the employee.

[geraldenek]

Refund the employee as the tax on the IPR5 certificates should be recalculated and shown correctly.

I’ve attached the reconciliation process.61975_2010PAYEReconGuide_1Sept.pdf