PAYE Registration

Pay-As-You-Earn (PAYE) and/or SDL Registration

Pay-As-You-Earn (PAYE), also known as Employees’ Tax, is a tax deducted from employees’ salaries and paid monthly to SARS by the employer. Any company that employs staff is legally required to register for PAYE.

Skills Development Levy (SDL) is a contribution made by employers, calculated at 1% of the total remuneration paid to employees. However, employers who pay less than R500,000 annually in remuneration are exempt from SDL contributions.

Unemployment Insurance Fund (UIF) contributions are also required monthly. Employers contribute 1% and employees contribute another 1% of the employee’s remuneration. UIF applies only to employees earning under a specified threshold.

Employers not registered for PAYE or SDL must pay UIF contributions directly to the Unemployment Insurance Commissioner. If the employer is registered with SARS for PAYE, UIF registration with the Department of Labour is also mandatory for declarations.

To apply for PAYE and/or SDL registration, the following documents and information are required:

• Close Corporation/Company documents

• Certified ID copies and proof of address of one member/director

• Description of business activity

• Date of employment of the first contributor (employee)

• Estimated payroll and number of employees for the next 12 months

• Original bank letter confirming company banking details (with bank stamp)

The PAYE Registration process usually takes 2–5 business days. However, delays may occur if SARS is experiencing a high workload.

Once the registration is completed, you will receive proof of PAYE registration.

Cost for PAYE Registration: R 699.00