To avoid penalties, every business owner should be aware of the eight most important Payroll in South Africa facts:

1. SARS is not the only place you should be registered with as an employer.
   Employers should be registered at SARS (for PAYE, UIF, and SDL) AND the Department of Labour (for UIF).

2. You must submit your monthly returns to both SARS - AND the Department Labour.
   Just as people often neglect their employer registration at the Department of Labour, they also neglect their monthly submissions to the Department of Labour.

3. There is a limit to how much UIF you must pay.
   According to South African legislation, you must contribute 1% of your employees' salaries as a UIF contribution. The company is also required to contribute 1% of the employee's salary as a contribution to UIF. This translates to a total contribution of 2%.
   However, employers are frequently unaware that there is a contribution limit of R177.12 cap. So, if an employee earns R17 712.00 or more, their contribution will be R177.12. The same applies for the employer’s contribution.

4. Monthly PAYE payments are due by the 7th of each month. If the 7th falls on a weekend, payment must be made by the Friday.

5. The EMP501 (Employer Bi-Annual Reconciliation Declaration) is due twice a year (a Mid-Year submission is due by 31 October and the Year End submission is due by 31 May). You can file these using the SARS's E@syFile system.

6. Tax certificates for employees are due once a year. IRP5 forms are to be prepared and submitted along with your Year End EMP501 submission.

7. If you do not accurately calculate your tax, your employees may pay too much or too little taxes. An employee paying too much tax will result in them receiving a tax refund, whereas, paying too little will result in SARS requesting the employee to pay SARS the outstanding amount.

8. You are not required to do everything yourself.
   Keeping track of all your Payroll needs might be difficult, but we know EXACTLY how to make it easy!

Contact us at Tundra Tax & Accounting on:
T: +27 (011) 794 5856
C: +27 (079) 871 5003

1A Waterford Drive
Maroeladal
Fourways
2192

PO Box 70141
Bryanston
2021
Johannesburg, South Africa