When an employee sees PAYE deducted from their payslip, that money isn't simply an extra expense created by the employer. It's part of the employee's own income-tax liability being collected during the year, rather than owed in one lump sum later.
Source: SARS
Frequently Asked Questions
What does PAYE stand for?
Pay-As-You-Earn.
Who normally deducts PAYE?
The employer.
Where does the PAYE money go?
The employer pays the amounts withheld to SARS according to the applicable PAYE requirements.