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.
Related Insights and Resources
Use these links to move from service scope into practical guidance, supporting documents, and regional pages.
Practical guidance on how to Submit Your Tax Return on eFiling Without Rework.
Practical guidance on tax Clearance Certificate What Usually Delays Approval.
Practical guidance on what to Do If You Miss a SARS Tax Deadline.
Practical guidance on why Small Businesses Fall Behind on Provisional Tax.
Practical guidance on online Tax Services vs Local Advisers.
Practical guidance on what SARS Penalties Usually Point To in a Small Business.
Frequently Asked Questions
When must I register for PAYE?
You must register within 21 days of becoming an employer, provided any employee earns above the tax threshold (approx R95k/year). If everyone earns below this, you still need to register for UIF.
What is SDL?
Skills Development Levy is 1% of your payroll, used to fund training in SA. You must register for SDL if your total annual payroll exceeds R500,000.
How long does registration take?
If all documents (especially the bank letter) are correct, it can be instant via eFiling. If SARS requests a manual audit, it takes up to 21 working days.
Can I do this myself?
Yes, but SARS creates strict validation errors for address mismatches or bank details. Using a practitioner ensures it's done right the first time.