Labour Services South Africa
Bizztax Accountants provides payroll processing, PAYE, UIF, SDL and employer compliance services for South African businesses. We ensure your business meets all its obligations as an employer under South African law.
What are labour services?
Labour services cover the payroll and employer compliance obligations of South African businesses. Every employer is required to register with SARS for PAYE (Pay As You Earn), UIF (Unemployment Insurance Fund) and SDL (Skills Development Levy), and to submit monthly EMP201 returns and an annual EMP501 reconciliation. Employers must also issue IRP5 certificates to employees. Bizztax manages all of these obligations on behalf of our clients.
Who needs payroll and labour compliance services?
Any business that employs staff — whether full-time, part-time or on contract — is required to register as an employer with SARS and to comply with PAYE, UIF and SDL obligations. Even businesses with a single employee must comply. Non-compliance results in SARS penalties, interest and potential personal liability for directors.
Our Labour & Payroll Services
Payroll Processing
We process your monthly payroll, calculate employee net pay after deductions for PAYE, UIF and any other deductions, and provide payslips for each employee. We use cloud-based payroll software to ensure accuracy and compliance.
PAYE Registration and Monthly EMP201 Returns
We register your business as an employer with SARS and submit your monthly EMP201 return, which declares the PAYE, UIF and SDL deducted from employee salaries. We ensure payments are made to SARS by the 7th of each month to avoid penalties.
UIF Registration and Compliance
We register your business with the Department of Employment and Labour for UIF and ensure monthly UIF contributions are correctly calculated and remitted. UIF contributions are 1% from the employer and 1% from the employee, capped at the monthly remuneration ceiling.
SDL (Skills Development Levy)
Employers with an annual payroll above R500 000 are required to pay SDL at 1% of the total leviable amount. We calculate and remit SDL as part of your monthly EMP201 submission.
Annual EMP501 Reconciliation and IRP5 Certificates
At the end of each tax year, employers must submit an EMP501 reconciliation to SARS and issue IRP5 certificates to all employees. We prepare and submit your EMP501 and generate IRP5 certificates for your employees.
Frequently Asked Questions
Common questions about payroll, PAYE and employer compliance in South Africa.
When must PAYE be paid to SARS?
PAYE, UIF and SDL must be paid to SARS by the 7th of the month following the month in which the salary was paid. If the 7th falls on a weekend or public holiday, payment is due on the last business day before the 7th. Late payment attracts a 10% penalty plus interest.
What is the UIF contribution rate in South Africa?
UIF contributions are 1% of the employee's remuneration from the employer, and 1% deducted from the employee's salary — a total of 2%. Contributions are capped at the monthly remuneration ceiling, which is adjusted periodically by the Department of Employment and Labour.
Does my business need to pay SDL?
SDL is payable by employers whose total annual leviable amount (broadly, total payroll) exceeds R500 000. The levy is 1% of the leviable amount. SDL is paid monthly via the EMP201 return. Businesses below the R500 000 threshold are exempt from SDL but must still register and submit nil returns.
What is an IRP5 certificate?
An IRP5 is a tax certificate issued by an employer to each employee at the end of the tax year. It reflects the employee's total remuneration, PAYE deducted, UIF contributions and any other deductions. Employees use their IRP5 to complete their annual income tax return (ITR12) on SARS eFiling.
Related services
Get a quote for payroll and labour services
Contact Bizztax Accountants for payroll processing, PAYE registration and employer compliance services for your business.