Any closed corporation, company, trust or sole proprietor that pays salaries or pays other individuals for services rendered must register with SARS as an employer, and deduct PAYE and UIF (where applicable) from the earnings of their employees. PAYE is deducted from the gross salary of an employee according to the individual tax tables.

By the 7th of each month, or if the 7th falls on a weekend or public holiday, then by the last preceding working day, an employer must submit a monthly EMP201 return to declare pay-as-you-earn (PAYE), unemployment insurance Fund (UIF), and, where required, skills development levy (SDL) deductions from their employees for the previous month. Twice a year the employer submits an EMP501 reconciliation to SARS and issues each employee with an annual IRP5 tax certificate.

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