What is a PAYE?:
Employees’ Tax (PAYE) refers to the tax required to be deducted by an employer from an employee’s remuneration, IE: the employees salary. This processing of deducting/withholding tax from remuneration as it is earned by an employee is known as PAYE.
An employer who is registered or required to register with SARS for PAYE, is also required to register with SARS for the payment of Unemployment Insurance Fund (UIF) contributions to SARS.
The amounts deducted or withheld from the employee’s salary must be paid by the employer to SARS on a monthly basis.
If you employ any staff, you are required to register for PAYE!
Unemployment Insurance Fund (UIF):
The aim of the Unemployment Insurance Fund (UIF) is to provide short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption leave, or illness.
Any employer, who is registered with SARS for Employees’ Tax, also needs to register to pay UIF contributions.
An employer is required to deduct a certain monthly percentage from an employee’s salary and contribute this on a monthly basis to the UIF.
Skills Development Levy (SDL):
The Skills Development Levy (SDL) is a levy imposed to encourage learning and development in South Africa and is determined by an employer’s salary bill.
1% of the total amount paid in respect of salaries to employees, which includes overtime payments, leave pay, bonuses, commissions and the like, are paid over to SARS by an employer for SDL on a monthly basis.