PAYE Registration
PAYE (Pay As You Earn) is the income tax an employer withholds from staff salaries and pays over to SARS. You have to register for it before your first payday, once anyone on the payroll, including a director on a salary, earns above the SARS tax threshold. Govchain registers your company with SARS and emails you the PAYE reference number.
CostR1 030
Timeframe20 days
ForEmployers / companies with staff on payroll
Who needs to register for PAYE
You must register for PAYE with SARS before you run payroll, once any employee (including a director taking a salary) earns above the SARS personal income tax threshold. SARS expects you to register within 21 days of becoming an employer.
- New companies hiring their first employee
- Existing businesses paying directors or staff a salary
- Sole directors paying themselves a salary from the company
- Companies with annual payroll above R500,000 (you’ll also need SDL)
- Businesses that have started running payroll and need to back-register
This page is for companies registering as employers. If you’re an individual checking PAYE on your payslip, that deduction is handled by your employer.
What’s included
- PAYE employer registration with SARS (EMP101 application)
- Online application, no SARS branch visit
- Document review so SARS doesn’t bounce the application back
- Your PAYE reference number delivered to your email
- Direct contact from our team if SARS queries the application
How it works
You complete the form. We handle the SARS submission and follow-ups.
Step 1
Tell us about your company and staff. A few minutes.
Step 2
Credit card, EFT, or cash deposit at any ATM.
Step 3
Our team checks your documents and files the PAYE application.
Step 4
SARS issues the number. We email it to you. You can start running payroll.
What you’ll need
- Registered company
- Business bank account
- Director’s certified ID (not older than 3 months)
- SARS Registered Representative
Used by companies across South Africa
Over 124 000 business owners use Govchain. R2.4bn+ in business revenue has been filed with SARS through our platform.
Common questions about PAYE Registration
What it is, whether you need it, and how the process works.
Do I need to register for PAYE?
Yes, if you have any employee (including a director taking a salary) earning above the SARS personal income tax threshold. The threshold is set in each year’s national budget. SARS requires you to register within 21 days of becoming an employer. Register before the first payday.
What happens if I don’t register?
SARS charges a 10% penalty on unpaid PAYE plus interest, and can retroactively bill you for PAYE you should have withheld. Late registration also blocks tax clearance certificates you may need for tenders.
How long does PAYE registration take?
Around 20 working days from the point we have your signed documents. SARS turnaround can vary if they query the application. We email you if it runs longer.
I’m a sole director paying myself a salary. Do I need PAYE?
Yes. A director paid a salary by the company is an employee for PAYE purposes. The company has to register as an employer and withhold PAYE on each salary payment.
What’s the difference between PAYE, UIF, and SDL?
PAYE is the income tax you withhold from employees and pay to SARS. UIF is funded by 1% from the employer and 1% from the employee (2% in total), capped on the first R17,712 of monthly salary. SDL is a 1% skills levy on total payroll, payable if your annual payroll is above R500,000. All three are declared together on your monthly EMP201 return.
Do I also need UIF?
Almost always. If you’re registering for PAYE you’ll usually need UIF too. We can do both at the same time. See UIF Registration for the standalone service.
What is the EMP201 return?
EMP201 is the monthly return you submit to SARS combining PAYE, UIF, and SDL for the previous month. It’s due by the 7th of the following month. You declare what you withheld from employees and pay the total over to SARS.
What is the EMP501 reconciliation?
EMP501 is the bi-annual reconciliation between what you declared on your monthly EMP201s and the IRP5 certificates issued to employees. You submit one in August (covering March to August) and one in May (covering the full tax year). Mismatches lead to penalties, so it has to balance.
What is an IRP5 certificate?
An IRP5 is the annual tax certificate you issue each employee at the end of the tax year. It shows their total income, total PAYE deducted, and contributions paid. Employees use it to file their personal tax return (ITR12).
Do I need to register if my employee earns below the tax threshold?
Strictly, no. But most accountants register anyway. The moment you pay anyone above the threshold (a bonus, a raise, a new hire), you’d need to be registered already, and the 21-day clock is short. Registering early avoids a scramble later.
Register for PAYE
Register before your first payday. We file the EMP101 application with SARS. Running payroll after that costs R400/month with Govchain Payroll.