What is the difference between PAYE and SDL?

PAYE is tax deducted from employee salaries. SDL (Skills Development Levy) is a separate 1% levy paid by employers with a payroll exceeding R500,000 per year.

Do I need to register for UIF separately?

Yes. While you pay UIF contributions to SARS via the EMP201, you must also register your company and employees specifically with the Department of Labour (uFiling) to ensure they can claim benefits.

Register for PAYE | Employer Registration Cape Town

Q: When must I register for PAYE?

You must register for PAYE within 21 days of becoming an employer if any of your employees earn above the tax threshold.

Understanding the "Three Levies"

When you register as an employer with SARS (EMP101), you aren't just registering for tax. You are activating the payment channels for three distinct levies. As your accountants, we ensure you are registered for exactly what you are liable for—no more, no less.

PAYE

Pay-As-You-Earn
Mandatory if any employee earns above the tax threshold. Deducted from their salary and paid to SARS.

UIF

Unemployment Insurance
Mandatory if staff work 24+ hours/month. SARS acts as the collection agent for the Dept of Labour.

SDL

Skills Development Levy
Only mandatory if your total annual payroll exceeds R500,000. It is a 1% levy on top of salaries.

Hiring Staff? Let's Get You Compliant.

One of the most common mistakes new businesses make is failing to register because they think their staff earn "too little."

Even if your employees earn below the tax threshold, you must still register for UIF if they work more than 24 hours a month. Failure to do so can result in penalties from the Department of Labour and issues when employees try to claim maternity or unemployment benefits.

Payroll Assessment

We calculate your total liability to see if you trigger PAYE, SDL, or just UIF requirements.

EMP101 Application (SARS)

We complete the SARS employer registration to obtain your PAYE number (starts with a '7').

Dept of Labour Linking

We ensure your business is separately registered on the uFiling system for full compliance.

First Return Setup

We help you set up your payroll software to ensure your first EMP201 is 100% accurate.

Required Documents

To process your employer registration, we need the following:

COR14.3 (CIPC Registration)
Director's ID Copy (Certified)
Number of Employees

Bank Confirmation Letter
Business Address
Estimated Monthly Payroll

Common Questions about Employer Registration

Legally, you must register for PAYE within 21 days of becoming an employer if any of your employees earn above the tax threshold. However, we recommend registering as soon as you hire your first employee to ensure your UIF is correctly routed from day one.