You're a new employer and not sure when you need to register for employee taxes and want to be prepared.
You, as an employer, will have to register for employee taxes with SARS when either one or both of the following occurs:
- One or more of your employee's salaries exceed the tax exemption threshold for the specified year. The tax threshold for employees under 65 is R87,300 for the tax year 1 March 2021 to 28 February 2022.
- Where your total salary expense for the next 12 months is expected to exceed R500,000.
If the first occurred, you would have to register for PAYE.
If the second occurred, you would have to register for SDL.
If both occurred, you would have to register for both PAYE and SDL.
Please note that some employers are exempt from paying SDL. They are, however, still required to register. For more information on the requirements for SDL exemption, go here.
Please note that you will automatically be allocated a SARS UIF reference number if you register for PAYE. This UIF reference number is, however, not your UIF number as per the Department of Labour. For more on this, go here.
Radar automatically calculates your PAYE, SDL and UIF liability each month based on the employee details captured on our system and supplies you with an easy to use report to complete your monthly and bi-annual returns. Notifications are also sent to remind you of upcoming filing due dates. Why wait? Sign up today with Radar to set your mind at ease.