PAYE – Who Should Register for PAYE in South Africa?


PAYE stands for Pay-As-You-Earn.

It is compulsory for all businesses that employ people and pay them a monthly salary to register for PAYE.

If any of the employees in the business earn more than the minimum threshold for PAYE taxpayers, then the business must adhere to the requirements for PAYE registrations.

What Is The Minimum Salary Threshold?

The minimum salary threshold is R91 250 if you are younger than 65 years.

If you are older than 65 years but below 75, the threshold is R141 250.

For those who are 75 years and older, the threshold is R157 900.

PAYE is calculated monthly and must be paid to SARS per month. Whether earnings are weekly or fortnightly.

How To Register For PAYE?

You can register for PAYE on the SARS eFiling website, or you can visit your nearest SARS branch.

However, should you have difficulty with your application, we offer PAYE registration services. Contact us to find out more.

What To Do After You Have Registered?

The business owner will need to deduct the appropriate UIF and PAYE amount off the employee’s salary, using the tax tables on SARS’s website.

UIF is calculated as 1% for the employer and 1% per employee. Therefore, a total of 2% per employee per month needs to be paid monthly.

The limit for UIF deduction’s is R297.44 per month.

If you do not earn above the threshold, then you do not need to be registered with SARS for PAYE. However, UIF must be paid over to the labour department if the employees work more than 24 hours per week.

What If PAYE Is Not Paid To SARS?

Unfortunately, if PAYE has not been paid over to SARS, the employee can be held liable even though it was the employer’s duty. And you will receive a 200% penalty. YIKES!

Therefore, we recommend outsourcing payroll services. Avoid the risk of incorrect payment amounts by hiring professionals in the industry. Thus, the IRP5’s generated and EMP501 reconciliations will be correct. 

(EMP501 is a report of all staff and their earnings. It is a requirement by SARS. EMP501 must be submitted twice a year before an IRP5 is issued.)

(IRP5 is an employee’s tax certificate that is issued at the end of financial. It details all related incomes, deductions, and taxes. Employees need IRP5 to complete their income tax return.)

We can assist with EMP501 and IRP5 submissions as well.

Contact Outsourcing Solutions today. We will assist you with Pay-As-You-Earn, UIF, EMP501, IRP5 and monthly submissions.