Payroll Services Cape Town | PAYE, UIF & SDL | Bizztax Accountants
Bizztax Accountants & Tax Practitioners provides payroll processing, PAYE registration, UIF, SDL and employer compliance services for businesses in Cape Town and across South Africa. We manage your monthly EMP201 submissions and annual EMP501 reconciliation so you can focus on running your business.
Payroll and employer compliance services in South Africa
Payroll and labour compliance services cover the employer obligations of South African businesses under the Income Tax Act and the Unemployment Insurance Act. Every employer is required to register with SARS for PAYE (Pay As You Earn), UIF (Unemployment Insurance Fund) and SDL (Skills Development Levy), and to submit monthly EMP201 returns and an annual EMP501 reconciliation. Employers must also issue IRP5 certificates to employees. Bizztax Accountants & Tax Practitioners manages all of these obligations on behalf of our clients in Cape Town and across South Africa.
Who needs payroll and labour compliance services?
Any business that employs staff — whether full-time, part-time or on contract — is required to register as an employer with SARS and to comply with PAYE, UIF and SDL obligations. Even businesses with a single employee must comply. Non-compliance results in SARS penalties, interest and potential personal liability for directors and members.
How our payroll service works
Employer registration
We register your business as an employer with SARS for PAYE, UIF and SDL if you are not already registered.
Monthly payroll processing
Each month, we calculate employee salaries, deduct PAYE, UIF and any other applicable deductions, and provide payslips for each employee.
EMP201 submission
We prepare and submit your monthly EMP201 return to SARS, declaring PAYE, UIF and SDL deducted, and ensure payment is made by the 7th of each month.
Year-end reconciliation
At the end of the tax year, we prepare and submit your EMP501 reconciliation and generate IRP5 certificates for all employees.
Our Payroll & Labour Services
Payroll Processing
We process your monthly payroll, calculate employee net pay after all deductions, and provide payslips for each employee. We use cloud-based payroll software to ensure accuracy and compliance.
PAYE Registration and Monthly EMP201 Returns
We register your business as an employer with SARS and submit your monthly EMP201 return, which declares the PAYE, UIF and SDL deducted from employee salaries. We ensure payments are made to SARS by the 7th of each month to avoid penalties.
UIF Registration and Compliance
We register your business with the Department of Employment and Labour for UIF and ensure monthly UIF contributions are correctly calculated and remitted. UIF contributions are 1% from the employer and 1% from the employee, capped at the monthly remuneration ceiling.
SDL (Skills Development Levy)
Employers with an annual payroll above R500 000 are required to pay SDL at 1% of the total leviable amount. We calculate and remit SDL as part of your monthly EMP201 submission.
Annual EMP501 Reconciliation and IRP5 Certificates
At the end of each tax year, employers must submit an EMP501 reconciliation to SARS and issue IRP5 certificates to all employees. We prepare and submit your EMP501 and generate IRP5 certificates for your employees.
Common questions about PAYE, UIF and SDL in South Africa
Straightforward answers to the payroll and employer compliance questions South African business owners ask most often.
What is PAYE in South Africa?
PAYE stands for Pay As You Earn. It is the income tax that employers are required to deduct from employees' salaries each month and pay to SARS. PAYE is governed by the Fourth Schedule to the Income Tax Act 58 of 1962. The amount deducted depends on the employee's income, tax bracket and personal deductions. Employers must register with SARS as employers, deduct the correct PAYE each month, and submit an EMP201 return with payment by the 7th of the following month.
PAYE services at BizztaxWhat is UIF in South Africa?
UIF stands for Unemployment Insurance Fund. It is a statutory fund that provides short-term relief to workers who become unemployed, or who are unable to work due to illness, maternity or adoption leave. UIF is governed by the Unemployment Insurance Act 63 of 2001 and the Unemployment Insurance Contributions Act 4 of 2002. Both the employer and the employee contribute 1% of the employee's remuneration to UIF each month, capped at the monthly remuneration ceiling. Employers must register with the Department of Employment and Labour and remit UIF contributions monthly via the EMP201 return.
UIF compliance at BizztaxWhat is SDL in South Africa?
SDL stands for Skills Development Levy. It is a levy paid by employers to fund skills development and training in South Africa, governed by the Skills Development Levies Act 9 of 1999. Employers whose total annual leviable amount (broadly, total payroll) exceeds R500 000 must pay SDL at 1% of the leviable amount each month. SDL is remitted to SARS via the EMP201 return. Businesses below the R500 000 threshold are exempt from SDL but must still register and submit nil returns.
SDL compliance at BizztaxWhen must PAYE be paid to SARS?
PAYE, UIF and SDL must be paid to SARS by the 7th of the month following the month in which the salary was paid. If the 7th falls on a weekend or public holiday, payment is due on the last business day before the 7th. Late payment attracts a 10% penalty plus interest at the prescribed rate under the Tax Administration Act 28 of 2011.
Payroll compliance at BizztaxWhat is an IRP5 certificate?
An IRP5 is a tax certificate issued by an employer to each employee at the end of the tax year. It reflects the employee's total remuneration, PAYE deducted, UIF contributions and any other deductions for the year. Employees use their IRP5 to complete their annual income tax return (ITR12) on SARS eFiling. Employers must issue IRP5 certificates as part of the annual EMP501 reconciliation process.
Payroll services at BizztaxWhat happens if I don't register for PAYE as an employer?
Failure to register as an employer and deduct PAYE is a serious offence under the Income Tax Act 58 of 1962. SARS can hold directors and members personally liable for unremitted PAYE. Penalties and interest apply to late registration and late payments. If you have employees and are not yet registered, contact Bizztax — we can register your business as an employer and bring your payroll compliance up to date.
Employer registration at BizztaxWhat information do we need from you?
- Employee names, ID numbers and banking details
- Employment contracts or agreed salary details
- Leave records and any variable pay (overtime, commission, bonuses)
- Medical aid and retirement fund deduction details
- SARS employer registration number (if already registered)
Frequently Asked Questions
Common questions about payroll, PAYE, UIF, SDL and employer compliance in South Africa.
When must PAYE be paid to SARS?
PAYE, UIF and SDL must be paid to SARS by the 7th of the month following the month in which the salary was paid. If the 7th falls on a weekend or public holiday, payment is due on the last business day before the 7th. Late payment attracts a 10% penalty plus interest.
What is the UIF contribution rate in South Africa?
UIF contributions are 1% of the employee's remuneration from the employer, and 1% deducted from the employee's salary — a total of 2%. Contributions are capped at the monthly remuneration ceiling, which is adjusted periodically by the Department of Employment and Labour.
Does my business need to pay SDL?
SDL is payable by employers whose total annual leviable amount (broadly, total payroll) exceeds R500 000. The levy is 1% of the leviable amount. SDL is paid monthly via the EMP201 return. Businesses below the R500 000 threshold are exempt from SDL but must still register and submit nil returns.
What is an IRP5 certificate?
An IRP5 is a tax certificate issued by an employer to each employee at the end of the tax year. It reflects the employee's total remuneration, PAYE deducted, UIF contributions and any other deductions. Employees use their IRP5 to complete their annual income tax return (ITR12) on SARS eFiling.
What is the difference between PAYE and provisional tax?
PAYE (Pay As You Earn) is income tax deducted from an employee's salary by the employer each month and paid to SARS. Provisional tax is paid by individuals and companies that earn income other than a salary — such as business income, rental income or commission. If you are self-employed or run a company, you pay provisional tax rather than PAYE.
What happens if I don't register for PAYE as an employer?
Failure to register as an employer and deduct PAYE is a serious offence under the Income Tax Act. SARS can hold directors and members personally liable for unremitted PAYE. Penalties and interest apply to late registration and late payments. If you have employees and are not yet registered, contact Bizztax to regularise your position.
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