How To Register For PAYE in South Africa

By | April 25, 2023

If you are an employer in South Africa, it is important to register for Pay-As-You-Earn (PAYE) taxes to comply with the country’s tax laws. 

This article will guide you through the process of registering for PAYE, step-by-step.

What is PAYE?

PAYE is a tax that employers deduct from their employees’ salaries and wages and pay to the South African Revenue Service (SARS) on their behalf. The tax is calculated based on the employee’s salary or wage and the tax tables provided by SARS.

Who needs to register for PAYE?

All employers in South Africa who pay salaries or wages to employees are required to register for PAYE with SARS. This includes companies, partnerships, sole proprietors, and non-profit organizations.

When should you register for PAYE?

You must register for PAYE within 21 days after becoming an employer, or within 21 days after taking over the business of an existing employer. If you fail to register within this time period, you may be liable for penalties and interest.

What documents do you need to register for PAYE?

To register for PAYE, you will need the following documents:

  • Your ID or passport if you are a natural person, or your company registration number if you are a juristic person
  • Your business banking details
  • Your employees’ tax information, including their IRP5 certificates, if you have already started employing people
  • Your company’s registration documents
  • Your SARS tax reference number, if you already have one

How to register for PAYE online

You can register for PAYE online through SARS eFiling. Here’s how:

  1. Log in to your SARS eFiling account or register for one if you do not have one yet.
  2. Click on the “Returns” tab and select “Registration” from the drop-down menu.
  3. Click on the “Register for Employees’ Tax” button.
  4. Follow the on-screen instructions and fill in the required information.
  5. Submit the registration form.

How to register for PAYE manually

If you prefer to register for PAYE manually, you can do so by visiting your nearest SARS branch office. Here is what you need to do:

  1. Download and complete the EMP101e form from the SARS website.
  2. Make a copy of your company registration documents and ID or passport.
  3. Visit your nearest SARS branch office and submit the EMP101e form and supporting documents.

How long does it take to register for PAYE?

The time it takes to register for PAYE depends on whether you register online or manually. If you register online, you can expect to receive your tax reference number within 24 hours. If you register manually, it may take up to 21 business days to receive your tax reference number.

How to submit PAYE returns

Once you have registered for PAYE, you will need to submit your returns to SARS on a monthly basis. You can do this online through SARS eFiling or by using the SARS EasyFile software. To submit your returns, you will need to provide information about your employees’ salaries and wages, the tax you have deducted, and any other allowances or deductions.

You will need to make your PAYE payments to SARS on a monthly basis. You can do this through electronic funds transfer (EFT) or at your bank. When making your payment, you will need to use your tax reference number as the payment reference to ensure that the payment is allocated to your account.

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