PAYE
PAY AS YOU EARN (PAYE) APPLIES TO ALL EMPLOYMENT
The “Pay As You Earn” (PAYE) method of deducting income tax from salaries and wages applies to all income from any office or employment. Thus PAYE applies to weekly wages, monthly salaries, annual salaries, bonuses, commissions, directors’ fees (whether the director is resident or non-resident) and any other income from an office of employment. The system applies to all cash emoluments and all credits in respects of emoluments to employees’ accounts with their employers, no matter what period they relate.
EMPLOYER’S DUTY TO DEDUCT INCOME TAX
It is the employer’s statutory duty to deduct income tax from the pay of his/her employees whether or not he/she has been specifically told to do so by the Domestic Taxes Department.
The normal PAYE year runs from 1st January to 31st December. The necessary PAYE stationery is normally issued to employers before the commencement of the year.
PURPOSE OF EMPLOYERS’ GUIDE TO “PAY AS YOU EARN”
General instructions on the operation of PAYE accompany the documents sent to the employers before each PAYE period and there are further specific directions printed on the various forms issued by the Domestic Taxes Department of GRA.
The purpose of this Guide is to assist employers in the general operation of the PAYE system. Where a problem arises which is not covered in this Guide, then Employers should contract the Local Tax Offices in Banjul, Kanifing, Brikama, Soma, Barra, Farafenni, Brikama-Ba and Basse for assistance.