How to Register for PAYE in South Africa: Employer's Guide

If you employ staff in South Africa, you must register as an employer with SARS and comply with payroll tax obligations. This includes PAYE, UIF, and potentially SDL. This guide covers everything you need to know, from registration to monthly submissions.

What Is PAYE?

Pay-As-You-Earn (PAYE) is the income tax you must deduct from your employees' salaries and pay over to SARS. It is not a cost to your business — it is your employees' tax that you collect on behalf of SARS. However, you are legally responsible for deducting and remitting it correctly.

Employer Obligations at a Glance

Step 1: Register as an Employer with SARS

You must register as an employer within 21 days of hiring your first employee. There is no minimum salary threshold — even part-time or casual employees trigger this obligation.

Online Registration via eFiling

• Log in to SARS eFiling and switch your profile to "Organisation"
• Complete form RAV01 (Registration, Amendments, and Verification)
• Select "Employer" as the registration type
• Provide your company registration number and business details
• Specify the date you became an employer (first salary payment date)
• Submit and wait for SARS to issue your PAYE reference number

Documents You Will Need

• CIPC registration certificate
• Proof of business address (utility bill, lease agreement)
• Bank account details in the business name
• List of employees with ID numbers and salaries
• Signed employment contracts (for verification purposes)

Step 2: Register for UIF

The Unemployment Insurance Fund (UIF) provides short-term financial relief to workers who lose their jobs or cannot work due to illness, maternity, or adoption leave.

• Register on the Department of Employment and Labour's UIF online portal
• Complete form UI-8 (Employer Registration)
• Provide company details and proof of registration
• UIF contributions are declared and paid via the monthly EMP201 return to SARS

Contribution: 2% of gross salary — 1% deducted from the employee and 1% paid by the employer. There is a salary cap of R17,712 per month (2026), meaning the maximum UIF contribution is R354.24 per employee (R177.12 each from employer and employee).

Step 3: Register for SDL (If Applicable)

The Skills Development Levy (SDL) is 1% of the total payroll, paid entirely by the employer. You must register for SDL if your annual payroll exceeds R500,000.

• Register via SARS eFiling (same RAV01 form)
• SDL is declared and paid monthly via EMP201
• Funds are paid to Sector Education and Training Authorities (SETAs)
• Employers who pay SDL can claim grants back from their SETA for training employees

Step 4: Submit Monthly EMP201 Returns

Every month, you must submit an EMP201 return to SARS declaring the PAYE, UIF, and SDL for that month.

• Due date: 7th day of the following month
• How to submit: SARS eFiling → PAYE → EMP201
• What to include: Total salaries paid, PAYE deducted, UIF contributions, SDL
• Payment: Pay the total amount due via EFT or directly on eFiling

If the 7th falls on a weekend or public holiday, the deadline moves to the next business day. Late submissions attract a 10% penalty on the unpaid amount plus interest.

Step 5: Submit Bi-Annual EMP501 Reconciliations

Twice a year, employers must submit an EMP501 reconciliation that reconciles the PAYE, UIF, and SDL declared on EMP201 returns with the actual amounts deducted from employees.

The EMP501 requires you to issue employees with IRP5/ITP3(a) tax certificates. These certificates summarise each employee's total salary, deductions, and tax paid for the period.

Using SARS Tax Deduction Tables

To calculate how much PAYE to deduct from each employee, use the SARS tax deduction tables (also called IRP5 tables). The tables account for:

• The employee's gross salary for the pay period
• Tax thresholds and rebates (primary, secondary, tertiary)
• Pension fund and retirement annuity contributions
• Medical scheme contributions and tax credits

Most payroll software calculates PAYE automatically. If you run payroll manually, download the current tables from the SARS website or use the SARS tax calculator.

Common Payroll Tax Mistakes

• Not registering as an employer on time — SARS can backdate registration and impose penalties from the date you should have registered.
• Incorrect PAYE calculation — Using outdated tax tables or not accounting for medical credits results in under- or over-deductions.
• Missing EMP201 deadlines — Automatic penalties apply. Set reminders.
• Incorrect UIF classification — Some workers (independent contractors) are not eligible for UIF, but many employers misclassify employees as contractors.
• Not reconciling EMP501 — SARS flags employers who do not reconcile. This can trigger an audit.

Employer Penalties at a Glance