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    Payroll Concepts

    Independent contractor

    A person genuinely running their own business — usually excluded from PAYE, UIF and BCEA protection.

    Full definition

    An independent contractor is a self-employed person who provides services to a client under a contract for services (not of service). Genuine independent contractors are outside the scope of PAYE, UIF, SDL and the BCEA. SARS applies a 'dominant impression' test; workers who fail it are treated as employees.

    See also

    PAYE
    Pay-As-You-Earn is the monthly income tax an employer withholds from each employee's salary and pays over to SARS.
    BCEA
    The Basic Conditions of Employment Act sets the minimum working hours, leave and pay conditions for South African employees.

    Automate Independent contractor in your payroll

    Payroll Africa handles Independent contractor calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.

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    Browse the full South African payroll glossary — 55 terms explained.

    Let payroll handle Independent contractor for you

    Payroll Africa calculates it automatically every month for South African employers — SARS-aligned, with payslips, EMP201 and IRP5 included.

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