PAYE (Pay‑As‑You‑Earn): Employers deduct employees’ income tax from salaries and pay it over to SARS.
UIF (Unemployment Insurance Fund): A mandatory fund providing short‑term relief to workers who become unemployed, or those on maternity, adoption or illness leave.
When to Register
Register for PAYE when you hire employees earning above the tax threshold.
Register for UIF as soon as you employ staff, regardless of their earnings.
Registration Steps
Gather Company Information:
SARS tax number
Company registration number
Director or owner ID details
Payroll details
Register via SARS eFiling:
Log in and choose “PAYE/UIF Registration.”
Complete the EMP101 form online.
Provide the estimated monthly payroll and the number of employees.
Register via a SARS Branch:
Fill out EMP101 and submit it in person.
Bring supporting documents such as proof of address and bank details.
Set Up Monthly Deductions:
Deduct PAYE and UIF contributions each payday.
PAYE is based on individual tax rates; UIF is 1% of gross salary (matched by the employer).
File and Pay Monthly:
Submit EMP201 declarations by the 7th of each month (or next business day).
Make payment via eFiling or EFT.
Submit Annual Reconciliation:
File EMP501 and provide employees with IRP5/IT3(a) certificates at year‑end.
Compliance Tips
Use payroll software to calculate deductions accurately.
Keep payslips and payroll records for at least five years.
Register for Skills Development Levy if your payroll exceeds R500,000.
