South Africa Payroll Compliance at a Glance
What We Handle
Every component of South Africa payroll compliance
PAYE Computation & EMP201 Filing
South African PAYE (SARS) must be filed via EMP201 and paid by the 7th of the following month. We manage the full EMP201 submission including PAYE, UIF, and SDL in a single return.
- 7-band progressive PAYE: 18%–45% (with primary rebate of ZAR 17,235/year)
- Monthly EMP201 submission and payment by the 7th
- Annual EMP501 reconciliation submitted to SARS
- IRP5/IT3(a) certificates issued to employees for annual tax returns
UIF (Unemployment Insurance Fund)
UIF is 1% employee + 1% employer on each employee's remuneration, capped at the monthly limit (currently ZAR 17,712/month). Remitted monthly via EMP201.
- 1% employee UIF deducted from remuneration each month
- 1% employer UIF contribution added to EMP201
- Capped at ZAR 17,712 monthly remuneration per employee
- Covers unemployment, maternity (4 months), illness, and dependants' benefits
Skills Development Levy (SDL)
Employers with annual leviable payroll over ZAR 500,000 pay 1% SDL monthly via EMP201. Up to 70% can be reclaimed through SETA mandatory and discretionary grants.
- 1% of monthly leviable amount remitted via EMP201
- SETA registration and grant claim management available
- SDL exemption assessment for employers below the threshold
- Consolidated with PAYE and UIF in a single EMP201 submission
Itemised Payslips
The BCEA requires employers to provide employees with an itemised written payslip on every pay day. We issue compliant payslips in ZAR for every employee.
- BCEA-compliant payslips issued every cycle
- PAYE, UIF (employee and employer), SDL shown separately
- Gross-to-net with all deductions and additions itemised
- Digital delivery to employees; records archived for employer
Annual SARS Reconciliation (EMP501)
SARS requires an EMP501 annual reconciliation bi-annually (August and February). We manage the full reconciliation and issue IRP5/IT3(a) certificates to employees.
- EMP501 annual reconciliation submitted by August and February deadlines
- IRP5 certificates issued to all employees for personal tax returns
- Employee tax directives (where required) managed
- SARS verification queries handled by our advisors
Statutory Entitlements & Leave
BCEA 1997 sets minimum leave entitlements: 15 working days annual leave, sick leave, family responsibility leave, and 4 months maternity leave (funded through UIF claim).
- 15 working days (21 consecutive days) annual leave tracked
- 30 days sick leave per 36-month cycle (first 6 days at full pay)
- 3 days family responsibility leave per year
- 4 months maternity leave managed — employer not liable for pay (UIF-funded)
Why Two Max Group
The standard that protects your business
SARS EMP201 Filed by the 7th — Every Month
SARS PAYE late submission attracts a 10% penalty plus interest. Our payroll cycle is structured to submit and pay EMP201 by the 7th of the following month without exception.
UIF and SDL in the Same EMP201
South Africa's EMP201 combines PAYE, UIF, and SDL in one return. We manage all three bodies in a single, coordinated monthly submission — no separate filings to miss.
Annual EMP501 Reconciliation
SARS's bi-annual EMP501 reconciliation (August and February) can expose years of missed deductions if not done correctly. We manage the reconciliation and issue IRP5 certificates to all employees.
BCEA and LRA Applied to Every Payslip
Termination, leave, and CCMA exposure all depend on how employment was structured from day one. We apply BCEA and LRA correctly on every payslip and employment event.
SDL Grant Reclaim Support
Employers can reclaim up to 70% of SDL paid through SETA grants if they submit a Workplace Skills Plan. We advise on the reclaim process to recover SDL costs.
72-Hour Activation
Payroll live within 72 hours. No CIPC entity required.
Common Questions
South Africa Payroll FAQs
Ready to run compliant payroll in South Africa?
Payroll live within 48 hours. No South Africa entity needed.