How to Register for PAYE and UIF as an Employer

What Are PAYE and UIF?

• 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

1. Gather Company Information:
   • SARS tax number
   • Company registration number
   • Director or owner ID details
   • Payroll details
2. 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.
3. Register via a SARS Branch:
   • Fill out EMP101 and submit it in person.
   • Bring supporting documents such as proof of address and bank details.
4. 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).
5. File and Pay Monthly:
   • Submit EMP201 declarations by the 7th of each month (or next business day).
   • Make payment via eFiling or EFT.
6. 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.