PAYE registration: cost, the 21 day rule and which taxes apply
The day you pay a first salary you become an employer, and SARS gives you 21 business days to register for the payroll taxes. Registration is free and done on eFiling on one form, the EMP101e, which covers PAYE, UIF and the skills development levy at once. The trap is registering for a tax you do not need, or missing the 21 days and paying the first month late.
Independent, not a government body. ProperSA is a private company. Everything in this guide can be done directly with the authority at its own fees; our service fee pays for it to be prepared, lodged and followed up for you.
The three taxes on one form
- PAYE, Pay As You Earn: income tax deducted from salaries above the tax threshold and paid to SARS monthly.
- UIF, 2% of pay, 1% each, which SARS collects with PAYE from registered employers, although the employee declarations still go to the Fund on uFiling.
- SDL, the skills development levy, 1% of total payroll, only once annual payroll goes over R500 000. Below that you are registered but exempt from paying. Register for it unnecessarily and you create a return you then have to file every month.
Cost and timing
- SARS fee: none. The EMP101e is filed on eFiling at no charge.
- 21 business days from becoming an employer to being registered, by law. Miss it and the first month’s PAYE is already late before you have a reference number to pay it against.
- Monthly: the EMP201 return and payment for last month by the seventh of the next month.
- Late payment penalty: 1% of annual PAYE for every month it is late, up to 10%, plus interest.
- Service fee: ProperSA charges R890 to prepare and submit the registration, switch on only the taxes that apply to you, and set up the monthly routine.
Frequently asked questions
How much does it cost to register for PAYE?
SARS charges nothing. The registration is the EMP101e on eFiling. ProperSA charges R890 to prepare and submit it and set up the monthly routine, with only the taxes that apply to you switched on.
How long do I have to register for PAYE?
21 business days from the day you become an employer, which is the day you pay a first salary. The first EMP201 return and payment then fall due by the seventh of the month after that salary.
Do I need to register for SDL?
Only once your total annual payroll will exceed R500 000. Below that you are exempt. Registering for it when you do not need it creates a monthly return you must keep filing, so the form should carry only the taxes that apply.
I pay UIF through SARS. Do I still need uFiling?
Yes. SARS collects the money, but the employee declarations go to the Unemployment Insurance Fund on uFiling, and the Fund needs your UIF reference number for them. Without the declarations the account shows as non compliant.
What happens if I register late?
PAYE is owed from the first salary regardless, so late registration means the first months are paid late, with the 1% a month penalty up to 10% and interest. Register inside the 21 days even if the first payroll is small.
From the Fourth Schedule to the Income Tax Act and the Skills Development Levies Act 9 of 1999 as described on the SARS employer pages, and the ProperSA PAYE registration page. General information, not legal, tax or financial advice. Figures were checked on 15 October 2026; authorities change fees and rules, so confirm anything you rely on.