First Hire? Get It Right.
The moment you employ someone, you enter a new tier of tax compliance. Failing to register for PAYE while deducting tax from employees is a serious offence (theft of state funds). We get you setup correctly from Day 1.
- Complete EMP101 Registration with SARS
- Simultaneous registration for UIF and SDL
- Avoid penalties for unregistered employees
- Guidance on 'Employer' vs 'Independent Contractor'
- Setup of eFiling profiles for employer tax
The Compliance Trio
Understanding the three levies triggered by employment.
PAYE
Pay As You Earn. Tax deducted from employee salaries and paid to SARS monthly. Mandatory if salary > Tax Threshold.
UIF
Unemployment Insurance Fund. 1% contributed by employer, 1% by employee. Mandatory for almost all employees working >24hrs/month.
SDL
Skills Development Levy. 1% of total payroll. Purpose is to fund training. Mandatory if annual payroll > R500,000.
Registration Process
Information Gathering
We collect company docs, bank confirmation letters, and director details required for the EMP101.
Application Submission
We submit the application to SARS via eFiling or branch visit (depending on SARS' current requirements).
Registration Number
SARS issues your PAYE reference number (starting with a 7). This activates your employer tax profile.
System Setup
We link this number to your payroll system and eFiling profile so you can submit your first EMP201.
Who Needs This?
The First Hire
You've just hired your first employee earning above the tax threshold. You legally must register within 21 days.
The Growing Team
Your payroll exceeds R500k per year? You now need to register for Skills Development Levy (SDL).
The Compliance Fix
You've been deducting tax but haven't paid it over because you weren't registered. We fix this backlog.
How We Work
We believe good accounting starts with structure and consistency. Our approach is designed to give business owners clarity without unnecessary complexity.