Question 1

How is PAYE calculated in South Africa?

Accepted Answer

PAYE is calculated by annualising the employee's monthly taxable income, applying the SARS tax tables for the current tax year, subtracting rebates (primary R17,820; secondary R9,765 age 65+; tertiary R3,249 age 75+) and medical scheme tax credits, then dividing by 12 to get the monthly withholding. Payroll Africa does this automatically using the exact SARS 2026/27 brackets.

Question 2

When is EMP201 due?

Accepted Answer

EMP201 must be submitted and paid by the 7th of the month following the payroll period. If the 7th falls on a weekend or public holiday, it must be paid by the last business day before. Late submissions attract a 10% late-payment penalty plus interest.

Question 3

What is the UIF ceiling for 2026/27?

Accepted Answer

The UIF earnings ceiling is R17,712 per month (unchanged since 1 June 2021), giving a maximum contribution of R177.12 by the employee and R177.12 by the employer. UIF is calculated on remuneration before pension fund deductions.

Question 4

Who must pay SDL?

Accepted Answer

Every employer whose total annual payroll exceeds R500,000 must register for SDL and pay 1% of monthly payroll to SARS on EMP201. Employers under the threshold are exempt but may still register voluntarily.

Question 5

How do I claim ETI?

Accepted Answer

ETI is claimed by reducing the PAYE amount you pay over on EMP201 each month. Payroll Africa calculates each qualifying employee's ETI automatically (based on age 18–29, monthly wage R2,000–R6,500 and South African/refugee status), tracks the 24 qualifying months and shows the total on the EMP201 export.

Question 6

Can I claim ETI for a domestic worker?

Accepted Answer

No — domestic workers are specifically excluded from ETI. ETI applies only to employees earning above the greater of the minimum wage or wage regulating measure applicable to the sector.

Question 7

What is the deadline for the EMP501 reconciliation?

Accepted Answer

The interim EMP501 (covering March–August) is due at the end of October. The annual EMP501 (covering March–February) is due at the end of May. Late submission attracts an administrative penalty of up to 10% of PAYE for the period.

Question 8

Can I file EMP201 late?

Accepted Answer

Late EMP201 submissions and payments trigger an automatic 10% penalty plus interest at the prescribed SARS rate. Consistent late filing can also trigger a SARS audit.

Question 9

How many annual leave days do employees get in South Africa?

Accepted Answer

The BCEA prescribes 21 consecutive days (equivalent to 15 working days on a 5-day week) of paid annual leave per 12-month cycle. It accrues at 1 day for every 17 days worked, or 1 hour for every 17 hours worked.

Question 10

How much sick leave is an employee entitled to?

Accepted Answer

30 working days per 36-month cycle for a 5-day week (36 for a 6-day week). In the first 6 months of employment, 1 day accrues for every 26 days worked.

Question 11

When is overtime double time?

Accepted Answer

Overtime worked on a Sunday is paid at 2x if the employee does not ordinarily work Sundays (1.5x if they do). Work on a public holiday is paid at 2x. All other overtime is 1.5x.

Question 12

What is the notice period in South Africa?

Accepted Answer

The BCEA minimums are 1 week (first 6 months), 2 weeks (6 months to 1 year) and 4 weeks (more than 1 year of service). Contracts can specify longer notice but not shorter.

Question 13

How is severance pay calculated?

Accepted Answer

Section 41 of the BCEA requires at least one week's remuneration for each completed year of continuous service on retrenchment. It is in addition to notice pay and outstanding leave, and the first R500,000 is tax-free under a SARS directive.

Question 14

Can an employer force an employee to take annual leave?

Accepted Answer

Yes — an employer can dictate when leave is taken (usually 14 days' notice), and unused leave older than 6 months past the end of the cycle can be forfeited by agreement. In practice, most employers pay it out or carry it over.

Question 15

What is the difference between an IRP5 and an IT3(a)?

Accepted Answer

An IRP5 is issued when the employee's earnings exceeded the tax threshold and PAYE was withheld. An IT3(a) is issued when earnings were below the threshold and no PAYE was withheld. Both use the same source codes and both are submitted on EMP501.

Question 16

Which source code do I use for a bonus?

Accepted Answer

Annual bonus goes to source code 3605. Basic salary is 3601. Overtime is 3607. Commission is 3606. Travel allowance is 3701 (80% taxable) or 3702 (100% taxable) and 3703 for a tax-free reimbursive rate below R4.84/km.

Question 17

Can I edit an IRP5 after submission?

Accepted Answer

Yes — you submit a corrected EMP501 with the amended IRP5, which supersedes the original at SARS. Payroll Africa keeps history and generates a fresh certificate any time you update prior data.

Question 18

How do I get an IRP5 into e@syFile?

Accepted Answer

Export the EMP501 CSV from Payroll Africa's Filings screen and import it into e@syFile Employer under Utilities → Import Payroll File. Payroll Africa produces the exact SARS-specified format.

Question 19

What if my EMP201 total doesn't match my IRP5 total?

Accepted Answer

SARS treats any variance as an underpayment or overpayment. Payroll Africa's built-in reconciliation flags variances before submission so you can fix the underlying period before generating the EMP501.

Question 20

How long does a migration take?

Accepted Answer

For a company with under 50 employees, a migration takes 1–3 business days once you provide the employee master file and year-to-date PAYE/UIF/SDL. Payroll Africa's onboarding team does the import for free.

Question 21

Will I lose my year-to-date PAYE totals?

Accepted Answer

No — we capture year-to-date totals for each employee so that mid-year IRP5s reconcile correctly at year-end. This is why we prefer migrations before the interim EMP501 in August or the annual in February.

Question 22

Do I need to notify SARS when I switch payroll software?

Accepted Answer

No. Your PAYE/UIF/SDL reference numbers stay the same and EMP201/EMP501 filings continue seamlessly from the new system.

Question 23

Can I keep my payslip design?

Accepted Answer

Yes. Payroll Africa's payslip designer lets you upload your logo, set your colour scheme and choose which fields display. Most Sage and SimplePay users get an equivalent or better-looking payslip on day one.

Question 24

Do I need payroll software for one employee?

Accepted Answer

You need to calculate and pay PAYE and UIF correctly and issue a compliant payslip every month, plus a year-end IRP5. Even for one employee, dedicated payroll software prevents the SARS penalties that come with manual mistakes. Payroll Africa starts at R90/month for 1 employee.

Question 25

How do I register for PAYE as a new business?

Accepted Answer

Register with SARS on eFiling under 'Manage Tax Types' — you'll need your company's CIPC registration, bank details and the details of your public officer. UIF is registered separately with the Department of Labour via uFiling. Payroll Africa's onboarding team can walk you through both.

Question 26

Do sole proprietors need to register for PAYE?

Accepted Answer

Only if the sole proprietor employs anyone (other than themselves) whose earnings exceed the tax threshold. A sole proprietor pays their own income tax as provisional tax, not PAYE.

Question 27

What's the cheapest payroll software in South Africa?

Accepted Answer

Payroll Africa starts at R90/month for 1 employee, which is lower than SimplePay's R120, Sage Payroll's R280 and PaySpace's typical R150+ entry point. Full pricing on the pricing page.

Question 28

Is it legal to send payslips over WhatsApp?

Accepted Answer

Yes, as long as the payslip content is not sent as an image or PDF directly in the message (which risks POPIA breaches through backups/screenshots). Payroll Africa sends a signed portal link the employee opens after authentication.

Question 29

What must a payslip contain under South African law?

Accepted Answer

Section 33 of the BCEA requires: employer name and address, employee name and job, period, ordinary hours worked, overtime hours worked, wage rate, gross pay, each deduction, net pay, and leave taken. Payroll Africa's default template includes all of these.

Question 30

Can I send payslips by SMS?

Accepted Answer

Yes. Payroll Africa sends an SMS via BulkSMS with a signed portal link (no payslip content in the SMS body) for employees without WhatsApp or email.

Question 31

How do I download old payslips?

Accepted Answer

Any employee can log in to their personal Payroll Africa portal and download every payslip issued to them. Payroll administrators can bulk-export payslips per run from the Payroll screen.

Question 32

Does Payroll Africa integrate with Xero?

Accepted Answer

Yes — Payroll Africa pushes a payroll journal to Xero after every approved run. Map your PAYE, UIF, SDL, wages and net pay accounts once and every subsequent run posts automatically.

Question 33

Does Payroll Africa integrate with QuickBooks Online?

Accepted Answer

Yes — the same journal-push works for QuickBooks Online. Connect once through the OAuth flow, map accounts and future runs post automatically.

Question 34

Which South African banks are supported?

Accepted Answer

Standard Bank, ABSA, FNB, Nedbank, Capitec Business and Investec — Payroll Africa generates the ACB/EFT bulk-payment file in each bank's required format.

Question 35

Can I export payroll to Sage Business Cloud Accounting?

Accepted Answer

Yes — Payroll Africa exports a Sage-compatible GL journal CSV you can import monthly.

Question 36

How does Payroll Africa integrate with our clocking system?

Accepted Answer

Payroll Africa imports hours by CSV export from your clocking or time-and-attendance system — employee number, date, normal hours, overtime and shift code. If your vendor provides an API, we can build a direct connector on request.

Question 37

Our employee count changes every month with seasonal workers. How is pricing calculated?

Accepted Answer

Payroll Africa is billed per employee, per month, only for employees included in an active payroll run that month. In quiet months you pay only for permanent staff; in peak months you pay for the extra seasonal workers you actually run. There is no annual contract or minimum user count.

Question 38

Can we pay farm and packhouse staff separately but still file one EMP201?

Accepted Answer

Yes. Cost centres let you report payroll by farm, packhouse, orchard or production line, while EMP201, UIF and SDL filings are consolidated for the whole employer.

Question 39

Does Payroll Africa handle Sectoral Determination 13 (agriculture)?

Accepted Answer

Yes. The system stores the agriculture minimum wage per tax year and flags any employee paid below the applicable rate before the run is finalised.

Question 40

Can we deliver payslips to seasonal workers without email?

Accepted Answer

Yes. Payslips can be sent via WhatsApp or SMS as secure portal links. No payslip content is included in the message for POPIA safety.

Question 41

What about in-kind payments such as housing and meals?

Accepted Answer

Housing, meals and transport provided to farm employees are valued as fringe benefits or allowable deductions per the BCEA and Seventh Schedule. Payroll Africa captures these values and includes them in PAYE, UIF and SDL calculations.

South African Payroll FAQ Hub

PAYE, UIF & SDL — South African payroll tax FAQs

Leave, overtime & BCEA compliance FAQs

IRP5, EMP501 & tax certificates FAQs

Switching from Sage, SimplePay or VIP FAQs

Small business & startup payroll FAQs

Payslips, WhatsApp delivery & POPIA FAQs

Xero, QuickBooks & bank file FAQs

Agriculture, packhouse and seasonal worker payroll FAQs