PAYE (Pay-As-You-Earn) is a tax deduction system through which employers withhold income tax from the salaries or wages of their employees on behalf of the South African Revenue Service (SARS). The deducted tax is then paid directly to SARS by the employer monthly. It can be difficult for any business owner to understand the complexities of PAYE, including tax codes, thresholds, and the many calculations involved. Payroll processing errors have the potential to have serious repercussions, including financial penalties and compliance problems.