2. Mechanics of payroll
2.1 Withholding of income tax
The obligation to withhold and deduct tax from employee earnings (PAYE) is governed by the Fourth Schedule to the ITA. Paragraph 2 states that every employer who is resident or any representative employer (in the case of an employer who is non-resident) who pays or becomes liable to pay 'remuneration' to an employee must withhold PAYE from that amount.
There are three requirements which must be satisfied before the PAYE withholding obligation arises, which are specifically defined in the Fourth Schedule:
• there must be an 'employee', and
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