What South African employers must deduct, declare and pay every month — and reconcile twice a year.
Every employer that pays remuneration above the tax threshold must register with SARS and deduct Pay-As-You-Earn (PAYE) from employees’ pay, using the SARS tax tables for the year. The tax year runs from 1 March to the end of February. Rebates, medical scheme fees tax credits and retirement fund contributions all affect the amount withheld.
UIF is 2% of remuneration: 1% deducted from the employee and 1% paid by the employer. It is calculated on earnings up to the ceiling of R17,712 a month, so the maximum is R177.12 from each side. UIF is paid to SARS on the EMP201, and employers also declare employee details to the Department of Employment and Labour.
The Skills Development Levy is 1% of leviable payroll. Employers whose total payroll is expected to be more than R500,000 a year must register and pay it; smaller employers are exempt. Employers can claim back part of the levy as grants through their SETA.
PAYE, UIF and SDL are declared together on the EMP201 and paid to SARS by the 7th of the following month. If the 7th falls on a weekend or public holiday, the deadline moves to the last business day before it.
Late payment brings an automatic 10% penalty plus interest, so treat the 7th as a hard deadline.
The EMP501 reconciles what you declared on your EMP201s with the IRP5/IT3(a) tax certificates issued to each employee:
| Submission | Period and timing |
|---|---|
| Interim reconciliation | Covers March to August; submitted in the September–October window |
| Annual reconciliation | Covers the full tax year (March to February); submitted in the April–May window |
Differences between EMP201 totals and IRP5 certificates are the most common cause of SARS queries, so reconcile monthly rather than once a year.
ETaxFlow’s South Africa payroll handles steps 2 to 4 and 6 in one run, and gives you the EMP201 totals; the HRMS handles step 1.
By the 7th of the following month, or the last business day before it if the 7th is a weekend or public holiday.
R17,712 a month. UIF is 1% from the employee and 1% from the employer on earnings up to that amount.
Employers whose annual payroll is expected to be more than R500,000. The levy is 1% of leviable payroll.
Twice a year: an interim reconciliation for March to August and an annual reconciliation for the full tax year.