PAYROLL SERVICES

Any business who employs at least one employee or any salaried director must register for PAYE/UIF and pay over monthly the employee taxes (PAYE) and/or UIF. 

What is PAYE?

Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The process of deducting or withholding tax from remuneration as it is earned by an employee is commonly referred to as PAYE. An employer who is registered or required to register with SARS for PAYE and/or Skills Development Levy (SDL) purposes, is also required to register with SARS for the payment of Unemployment Insurance Fund (UIF) contributions to SARS.

Who is it for?

The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer return (EMP201). The EMP201 is a payment return in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or Employment Tax Incentive (ETI), if applicable.

The Employment Tax Incentive encourages employers to employ young workers by providing a tax incentive to the employers.

How and when should it be paid?

It must be paid within seven days after the end of the month during which the amount was deducted. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.

What is Workmans Compensation and why should you register?

It is a form of insurance, instituted by The Compensation for Occupational Injuries and Diseases Act. (1923 ACT NO. 8 OF 1923) providing wage replacement and medical benefits to employees injured in the course of employment.
It protects employers from civil claims and enables both casual and full – time employees to claim compensation directly from the fund for work-related injuries and disability.

In order to register for Workman’s Compensation, the following documents and information is required:

• CC/Company documents
• Nature of business/activities
• Certified ID copies of members/directors
• UIF Number (if applicable)
• PAYE Number (if applicable)
• Number of employees
• Estimated total earnings of employee/s for the year
• Date employee/s were/was appointed