PAYE Number

A PAYE Number is issued by SARS when your business registers for Pay As You Earn (PAYE) – the system used to deduct employee income tax and pay it over to SARS every month.

If you’re paying staff a salary that’s above the tax threshold, you’re legally required to register for PAYE.

"When do I need a PAYE Number?"

You must register for PAYE if:

  1. You have one or more employees
  2. Any of those employees earn above ±R7,900/month (that’s around R95,000/year)
  3. You’re paying regular monthly salaries (not just once-off payments)

Even if you only have one employee, PAYE is required if their income is taxable.

"Why is a PAYE Number important?"

Without PAYE registration, you can’t:

  • Legally deduct income tax from employee salaries
  • Issue compliant payslips
  • Submit monthly tax declarations to SARS
  • Stay in good standing as an employer

If you’re caught paying staff without deducting PAYE, SARS can charge penalties, interest, or even open a compliance investigation.

"Can I pay salaries without a PAYE Number?"

Technically, yes, but not legally, if the person earns above the threshold.

If you don’t register and deduct tax properly, you as the employer become liable for the unpaid tax.

"What about freelancers or contractors?"

You usually don’t need PAYE if the person is a genuine independent contractor.

But SARS may still classify them as an employee, depending on:

  • How regularly they work for you
  • Whether they work under your control or on your premises
  • Whether they use their own tools or follow your hours

When in doubt, it’s safer to register.

"Is PAYE the same as UIF or SDL?"

No but they’re often registered together.

When you register for PAYE, you’ll usually register for:

  • UIF (Unemployment Insurance Fund)
  • SDL (Skills Development Levy) if your payroll exceeds R500,000/year

Govchain can help with all three at once.

"How do I get a PAYE Number?"

Govchain will register your company for PAYE with SARS, submit all the required forms, and send your PAYE reference number directly to you — fully compliant and ready for payroll.


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