The business is in compliance with all legal requirements for employers (registration and payment)

What does this mean?

  • As with businesses, employers also need to pay tax to SARS, referred to as Pay As You Earn (PAYE)
  • Businesses are required to deduct this from employee salaries and pay this over to SARS on a monthly basis.
  • This is done by completing the Monthly Employer Declaration (EMP201).  This same form is used to also declare your monthly Skills Development Levy (SDL) and Unemployment Insurance Fund (UIF) payments.

What do I do?

  • SARS compiled a very useful guide on how to calculate and file employee taxes. This guide can be accessed at:

http://www.sars.gov.za/TaxTypes/PAYE/Pages/default.aspx

  • PAYE must be paid by the 7th of each month for the preceding period.  If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day prior to the public holiday or weekend.  As suggested above, the easiest way to submit your EMP201 is via eFiling
  • The SDL is compulsory for businesses that pay more than R500,000 per year in salaries to their employees.
  • To find out more about the SDL, go to: http://www.labour.gov.za/DOL/legislation/acts/basic-guides/basic-guide-to-skills-development-levies

Skills Development Act, No. 97 of 1998
Skills Development Amendment Act, 2008
Skills Development Levies Act, No 9 of 1999