PAYE Registration / 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 (SARS)

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
• 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
• Proof of Address of the CC/Company. It can even be same as the residential address of one of the members/directors, if you don’t have a separate business premises for now or if you trade from home.
• Power of Attorney which gives us the authority to apply for Income Tax on your behalf (which will be sent to you via email once the order is placed).

This PAYE Registration process takes 2-5 business days. However if there are delays with SARS due to system errors and workload, the process could take longer.

Once the PAYE Registration is complete, you will receive proof of PAYE registration.