If you pay any form of remuneration to employees you are required by law to register for pay as you earn (PAYE).
You are then required to deduct, submit and pay the correct amount of PAYE over to the South African Revenue Services (SARS) every month. This needs to happen before the last working day before the 7th of every month.
You'll be required to submit the monthly form which is called the MP201, reflecting the PAYE detection from each employees salary. Failure to submit these will lead to serious penalties with the receiver of revenue. To reconcile the taxes collected with the actual money paid to SARS, you will also need to submit the MP501 for PAYE reconciliation every 6 months.
How do you register for PAYE?
In order to regsiter for PAYE, you will need the following documents:
Please note: It is important that you are registered on e-filing.
- Copy of your ID Document
- Company Registration Documents
- Company Banking Details
- Company Address
- Representative Address
- Estimated Salaries for the year
During the whole process is it important to remember that if you are deducting PAYE off your salary, and your payroll exceeds half a million rand every year, then it is also compulsary that you have to register for Skills Development Levies.
For more information, click here.