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.

PAYE, UIF & SDL — South African payroll tax FAQs

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