PAYE frequently asked questions
1. Does the business or the employees register for PAYE/UIF?
The business is registered for PAYE/UIF. The PAYE/UIF registration number is registered in the business name and will stand until de-registered. The current employees are linked to this business registration number. It is the responsibility of the business to submit monthly declarations to declare the employees' details, salaries etc. for that specific month before the 7th of the following month, e.g. February 2018 info must be submitted and paid over on/before 7 March 2018.
2. Does the member(s)/director(s) count as employees?
If the member(s) directors are actively involved in the business and receives a salary/ drawing from the business they must be added as employees.
3. I am trading as a sole proprietor? Do I still need to register?
Yes, as soon as you employ a worker who works for more than 24 hours a month you need to register your business with PAYE/UIF.
4. The business is already registered with SARS for PAYE and UIF. Do I still need to register with Deparment of Labour?
A business is registered automatically with Department of Labour as soon as PAYE/UIF registration is completed with SARS and must be followed up by the client.
5. When must a business register for PAYE with SARS?
As soon as employees are appointed and starts working for the business.
6. What deductions should be made?
For UIF 1% must be deducted from the employee's gross salary and 1% must be contributed by the business. Therefore 2% in total. E.g. a worker received a R2 000 salary, R20 to be deducted from his/her salary and R20 to be contributed by the business and paid over to the UIF/SARS. Tax (PAYE) needs to be deducted according to each financial year's tax tables from each employee earning more than the tax threshold and paid over to SARS.
7. How do I make payment to SARS for PAYE/UIF?
Payment must be made directly to SARS accompanied by the monthly declaration form (EMP201). Declaration form must also be submitted to the UIF regarding the UIF deductions.
8. Can myFINANCE-Online assist in the monthly declarations and payments?
Yes, we offer a monthly service where we issue electronic payslip to each employee, deduct necessary PAYE/UIF amount, submit the monthly declaration form and make payment from your nominated bank account.