Pay-As-You-Earn (PAYE) and/or SDL Registration
Pay-as-you-earn PAYE or Employees’ Tax is a tax that is deducted from an employees’ income and paid to SARS on a monthly basis. Once a company has employees, it is obliged to register for PAYE.
SKILL DEVELOPMENT LEVY (SDL)
SDL is payable by employers at a rate of 1% of the remuneration (salary) paid to employees. Employers paying annual remuneration for less than R500 000 in a year are exempt from paying SDL.
UIF is payable monthly by employers on the basis of a contribution of 1% by employers and 1% by employees, based on employees’ remuneration (salary) below a certain amount.
Employers not registered for PAYE or SDL purposes must pay the contribution directly to the Unemployment Insurance Commissioner. However, if the employers are registered for PAYE with SARS, they are required to register with the Department of Labour for UIF for declaration.
In order to apply for PAYE and/or SDL, the following documents and information are required:
- CC/Company Documents (COR14.3)
- Completed and signed PAYE application (EMP101) form
- Members/Directors certified ID copies along with proof of address of one of the members/directors
- Business description/activity
- Date on which the first contributor (employee) was employed
- Estimated payroll for the following 12 months and number of employees on which payroll is based
- Original letter from bank confirming banking details of the CC/Company stamped by the bank
- Recent original business municipal account (not older than 3 months) or a certified copy of the lease agreement
- Recent original residential municipal account of the directors (not older than 3 months)
- Completed and signed confirmation of residential address form CRA01 on SARS website
This PAYE Registration process takes 2-5 business days. However, if there is a delay from SARS due to excessive workload, the process could take longer.
Once the PAYE Registration is complete, you will receive proof of PAYE registration.
Cost for PAYE Registration: R 499.00