PAYE, UIF and SDL registration with SARS
The day you pay your first salary you become an employer, and SARS gives you 21 business days to register for the payroll taxes. Miss it and the first month’s PAYE is already late before you have a reference number to pay it against. We register you on eFiling, tell you which of the three taxes actually apply to you, and set up the monthly routine so it never falls behind.
Which of the three you actually need
- PAYEPay As You Earn is the income tax you deduct from staff and pay over monthly. It applies once any employee earns above the tax threshold, R99 000 a year for the 2027 tax year. Pay everyone under that and PAYE does not apply, but the next two still do.
- UIFUnemployment insurance, 1% from the employee and 1% from you on earnings up to the UIF ceiling, from the very first employee. If you are registered for PAYE, SARS collects it on the same EMP201. If you are not, you pay the Fund directly.
- SDLThe skills development levy, 1% of total payroll, only once your annual payroll goes over R500 000. Below that you are registered but exempt from paying.
All three go on one form, the EMP101e, and are paid on one monthly return. Registering for one you do not need creates a filing obligation you then have to keep up; leaving one out creates a debt with interest. We get the combination right on day one.
What actually goes wrong
- No registered representative on eFilingSARS will not process an employer registration until a natural person is linked to the company as its registered representative. Half of new companies are stuck here. Our representative setup fixes it, and we tell you before you pay for this if that is where you are.
- Registering after the first pay runThe 21 business days start when you become an employer, not when you get round to it. A late registration means the first EMP201 is late too, with 10% penalty and interest on the PAYE.
- Company details that do not match CIPCA different address or director on SARS than on the company register stalls verification.
- Forgetting the FundSARS collects UIF money but the Unemployment Insurance Fund keeps the records. Employees cannot claim if you never registered with the Fund and never filed the UI-19s.
- Nobody diarising the EMP501The twice-yearly reconciliation is where employers get penalised: 1% of annual PAYE for every month it is late, up to 10%.
What you get for R890
- The EMP101e prepared and submitted on eFilingPAYE, UIF and SDL registered in one application, with only the taxes that apply to you switched on.
- A pre-checkRegistered representative, company details against CIPC, and the tax number, so the application is not returned.
- Your PAYE reference numberIn writing and in your portal, with the SDL and UIF numbers where they apply.
- The monthly routine set upAn EMP201 guide in plain English, the payment reference format, and a calendar with the 7th of every month and both EMP501 windows on it.
- First-month checkWe look over your first EMP201 before you submit it, so the first one is right.
How it works
- 1Order and answer the short formCompany details, tax number, first pay date, how many staff and roughly what the payroll is.
- 2We check and submitRepresentative and CIPC details confirmed, the EMP101e lodged on eFiling.
- 3Registered and ready for month oneYour reference numbers, the EMP201 guide and the deadline calendar in your portal.
Not sure whether you cross the threshold? Ask us first and you get a written answer within one business day.
What we will need from you
- Your CIPC registration number and company income tax number.
- eFiling access: the registered representative’s login, or an invitation for us to act on the company’s profile.
- The date of the first salary payment, because that is when the 21 business days start.
- Number of employees and expected monthly payroll, so we know whether SDL applies.
- Physical business address and banking details as they appear on your bank confirmation.
The dates that follow
| What | When | Miss it and |
|---|---|---|
| Register (EMP101e) | Within 21 business days of the first salary | First EMP201 is late from the start |
| EMP201 and payment | Within 7 days after each month end | 10% penalty on the late PAYE plus interest |
| EMP501 interim reconciliation | September to October window, for March to August | 1% of annual PAYE per month late, up to 10% |
| EMP501 annual reconciliation | 1 April to 31 May, for the full tax year | Same penalty, and staff cannot get their IRP5s |
| UI-19 to the Fund | Every month, with the Fund not SARS | Staff cannot claim UIF benefits |
SARS publishes the exact interim window each year; the 2025 window ran from 22 September to 31 October. Thresholds are from the Budget 2026 tax guide for the year to 28 February 2027.
Frequently asked questions
When must I register for PAYE?
SARS says an employer must register within 21 business days after becoming an employer, unless none of the employees are liable for normal tax. You become an employer the day you pay the first salary. If every employee earns under the tax threshold, R99 000 a year for the 2027 tax year, you do not have to register for PAYE, but UIF still applies from the first employee.
What is the difference between PAYE, UIF and SDL?
PAYE is the income tax you deduct from salaries and pay to SARS every month. UIF is the unemployment insurance contribution, 1% from the employee and 1% from you, on earnings up to the UIF ceiling. SDL is the skills development levy of 1% of payroll, payable once your total annual payroll goes over R500 000. All three are registered on one SARS form, the EMP101e, and paid together on the monthly EMP201.
Do I still need to register with the Department of Labour for UIF?
Yes. SARS collects the UIF money from PAYE-registered employers, but the Unemployment Insurance Fund at the Department of Employment and Labour keeps the employee records and pays the claims. You register there separately and file a monthly UI-19 declaration. Employers not registered for PAYE pay their UIF contributions to the Fund directly instead of SARS. Our UIF registration service does the Fund side.
What happens every month after I register?
You file an EMP201 and pay the PAYE, UIF and SDL for the month within seven days after the end of that month. Twice a year you file an EMP501 reconciliation: the interim one covers March to August and is filed in the September to October window, and the annual one covers the full tax year and is filed between 1 April and 31 May. Late reconciliations attract a penalty of 1% of your annual PAYE for each month outstanding, up to 10%.
How long does SARS take?
An eFiling application with matching details is usually processed within a few business days, sometimes the same day. It stalls when the company’s registered representative is not set up on eFiling, or when the company details on SARS do not match CIPC.
Is this the same as UIF registration for R690?
No. That service registers you with the Unemployment Insurance Fund at the Department of Employment and Labour, which every employer needs, including households. This one registers you with SARS for the payroll taxes, which you need once you pay anyone above the tax threshold. Most new employers with staff need both, and the Employer Admin pack covers both together.
The rest of becoming an employer
Payroll taxes are one of five duties that start with the first employee. The others are UIF with the Fund, COIDA with the Compensation Fund, a written contract, and a payslip every month.
Employer registration is with the South African Revenue Service under the Fourth Schedule to the Income Tax Act, the Unemployment Insurance Contributions Act and the Skills Development Levies Act. Registration is free; SARS processing times and the outcome of verification are outside our control. Thresholds quoted are from the Budget 2026 tax pocket guide for the tax year ending 28 February 2027. This is administrative assistance, not tax advice.