Key points
- Employers must register with SARS and the relevant funds when they start employing staff.
- Monthly employer declarations and annual reconciliations are required.
- Accurate employee records make every submission easier.
The main employer obligations
- Employees' tax (PAYE) — deducted from salaries and paid to SARS.
- Unemployment Insurance Fund (UIF) — contributions by employer and employee, plus employee declarations.
- Skills Development Levy (SDL) — payable by employers that meet the criteria.
- Compensation Fund (COID/WCA) — registration and an annual return of earnings.
Whether each applies, and at what rate, depends on your circumstances — confirm the current requirements with SARS or your advisor.
Monthly and annual submissions
PAYE, UIF and SDL are declared and paid to SARS each month on the EMP201. Employers also submit periodic reconciliations (EMP501) and issue tax certificates to employees. The Compensation Fund requires its own annual return.
Running payroll accurately
- Keep employee contracts, tax numbers and banking details up to date.
- Agree a monthly cut-off for overtime, leave and other changes.
- Check payroll totals before payment and before each submission.
- Store payroll records securely — salary information is confidential.
Should you outsource payroll?
Outsourcing reduces admin and the risk of errors, keeps salary information confidential and removes the need for in-house payroll software and expertise.
General information only. This guide is not professional advice. Tax and statutory requirements change — confirm current rules and dates with SARS or CIPC, or speak to us about your situation.