Demand-ranked tax questions · Employer · Question 05 of 20
When must a business register for PAYE, UIF and SDL?
An employer generally needs to register for employees' tax within 21 business days after becoming an employer, unless no employee is liable for normal tax. UIF and Skills Development Levy have their own liability tests. SDL generally applies when expected payroll for the next 12 months exceeds R500,000.
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The points that decide the answer
- PAYE is withheld from remuneration and paid to SARS through the monthly EMP201 process.
- UIF usually involves both an employee and employer contribution, subject to the applicable rules and ceiling.
- SDL is an employer cost and is not deducted from employees.
- Registration is only the start: payroll codes, taxable benefits, reconciliations and IRP5 certificates must also be correct.
A practical way to handle it
- Identify all employees, directors and recurring contractors.
- Determine which payments are remuneration.
- Register the relevant products on eFiling before the first due date.
- Set up monthly EMP201 and six-monthly EMP501 controls.
Common mistakes
- Calling a worker a contractor without testing the facts
- Registering PAYE but forgetting UIF
- Running net-pay payroll with no gross-to-net records
What to keep on file
Employment contracts, IDs, tax numbers, payroll reports, bank files, declarations and IRP5 data.
Source and scope
Based on current SARS guidance, reviewed on 28 August 2026. This is general information, not tax advice. Rates, thresholds and outcomes depend on the tax year and your facts. Regulated submissions and advice are handled through registered partners where required.
What is ETI and does my business qualify? Read the related guide