The South African Payroll Compliance Checklist Every Employer Needs

Payroll compliance in South Africa involves multiple government agencies and deadlines. Missing any of them can result in penalties, interest, and even criminal liability. Here's your complete checklist.

Monthly Obligations

• Process payroll and issue payslips to all employees
• Submit EMP201 (PAYE, UIF, SDL) to SARS by the 7th of the following month
• Pay over PAYE, UIF, and SDL to SARS
• Submit UIF declarations to the Department of Employment and Labour (if using uFiling)

Bi-Annual Obligations

• Submit IRP5/IT3(a) certificates to SARS (interim reconciliation: September)
• Reconcile EMP501 with SARS

Annual Obligations

• Submit final EMP501 reconciliation by 31 May
• Issue IRP5 certificates to all employees by 31 May
• Review and update employee tax directives
• Submit annual COIDA (Compensation for Occupational Injuries and Diseases) return

Ongoing Obligations

• Register new employees with SARS within 60 days of employment
• Submit UIF registration for new employees within 7 days
• Maintain accurate employee records for at least 5 years
• Update payroll for annual minimum wage increases (effective 1 March each year)

Common Mistakes to Avoid

1. 1Not registering as an employer with SARS — required before your first payroll run
2. 2Incorrect PAYE calculations — especially for employees with multiple income sources
3. 3Missing the EMP201 deadline — SARS charges 10% penalty on late payments
4. 4Not accounting for the two-pot retirement system — see our separate article on this topic

Solaris Advisory Group manages payroll compliance for businesses of all sizes. Contact us to discuss how we can take this off your plate.