Pay As You Earn, or PAYE, requires an employer to deduct income tax from employment emoluments, report employee information and remit the deductions to the Guyana Revenue Authority (GRA).
Organisation TIN registration and PAYE compliance are separate. Receiving a TIN does not by itself prove that every employer-activation step has been completed.
Who is treated as an employer?
GRA’s current guidance treats a person paying employment emoluments—such as salaries, wages or bonuses—as an employer for PAYE purposes. Deductions are made according to the employee’s earning period, which may be daily, weekly, fortnightly or monthly.
The classification of a particular worker or payment can have legal and tax consequences. Do not rely only on the label used in a contract.
The employer’s PAYE cycle
The core operating cycle is:
1. Capture employee identity and payroll information. 2. Calculate the applicable deduction for the earning period. 3. Withhold the tax when the emolument is paid. 4. Prepare the monthly Form 5 return. 5. Remit the tax within fourteen days after the end of the income-tax month. 6. Submit the required employer returns through the approved channel. 7. Reconcile the annual Form 2 information. 8. Generate and distribute the applicable employee 7B slips.
2026 deduction framework
GRA’s notice effective 1 January 2026 states:
- annual personal deduction: GYD 1,680,000 or one-third of relevant income, whichever is greater;
- corresponding monthly base personal allowance: GYD 140,000;
- first GYD 3,360,000 of annual chargeable income: 25 percent; and
- chargeable income above GYD 3,360,000 annually: 35 percent.
The 2026 notice also describes deductions for NIS contributions, qualifying medical and life-insurance premiums, children, a second job and overtime within the stated limits.
These figures are time-sensitive. GRA pages containing older allowance and rate values do not control the specific 2026 notice. Revalidate the current-year notice before publishing or using the figures in payroll.
Form 5: monthly employer return
Form 5 is the monthly employer PAYE return. It reports the required employee, income, statutory-deduction and tax-deducted information for the period.
The employer must remit PAYE within fourteen days after the end of each income-tax month. Build the date into the payroll close process rather than waiting for a reminder from GRA.
Form 2: annual employer return
Form 2 is the annual or summary employer return. The controlled source set confirms its identity and function but does not approve an exact current annual deadline through a complete controlling instrument chain. GRA operational pages should be checked immediately before publication and filing; the draft must not present a disputed or unverified date as settled law.
Electronic submission through eServices
GRA supports electronic Forms 2 and 5 submission using a prescribed comma-separated-value file. The employer may submit through its eServices account or through a tax agent.
For the electronic file:
- use the current-year template and guide;
- submit one file per month or year, as appropriate;
- include all required fields;
- use the prescribed filename pattern without spaces;
- run the file through the current validator; and
- correct and resubmit errors until the successful-submission message is received.
An electronic return-submission route does not establish a fully online employer-activation process or every PAYE payment channel.
Employee 7B slips
GRA’s current 7B generator helps employers create annual employee emolument slips, add QR codes and distribute slips by email. The employer must prepare the employee data using the provided template, upload it, correct any issues, download the generated archive and distribute the slips.
The controlled source set does not approve an independent current deadline for issuing Form 7B. Verify the applicable timing directly with GRA before publication and distribution.
Records and controls employers should maintain
- Employee name and TIN information.
- Earning period and gross emoluments.
- Statutory deductions and PAYE calculations.
- Submitted Forms 5 and 2.
- CSV files and validation results.
- Payment and remittance evidence.
- Generated 7B slips and distribution records.
- Documentation supporting any correction or adjustment.
Common mistakes to avoid
- Assuming a company TIN automatically completes PAYE activation.
- Using an older-year rate notice or file template.
- Missing the fourteen-day remittance rule.
- Uploading a CSV with spaces in the filename or incomplete fields.
- Treating a failed validation email as a completed filing.
- Publishing a Form 2 or 7B deadline that has not been revalidated.
Official sources
- GRA — Do I Need to Submit PAYE?
- GRA — File Your PAYE
- GRA — 2026 Personal Allowance and Deductions Notice
- GRA — 7B Generation
- GRA — Forms
Editorial note
This guide provides general information, not payroll, tax or legal advice. PAYE rates, deductions, forms and electronic formats can change. Confirm the current-year requirements with GRA and obtain qualified advice for worker classification and payroll treatment.
