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 10 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.

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.

PAYE Registration

We register your company for PAYE with SARS. You get your PAYE reference number by email, usually within 10 working days.

Cost:R1030

Timeframe: 10 days

For:Employers / companies with staff on payroll

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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.