How to register as an employer in South Africa
The moment you pay your first employee, three registrations become due: PAYE with SARS, UIF with the Department of Employment and Labour, and COIDA with the Compensation Fund. SDL joins the list once your annual payroll passes R500,000. SARS requires PAYE registration within 21 business days of becoming an employer, and late registration attracts penalties and interest on undeclared amounts.
Payroll Africa Editorial · SARS Payroll Compliance Team
The Payroll Africa editorial team is composed of registered tax practitioners, payroll administrators and BCEA specialists who maintain the SARS PAYE, UIF, SDL and ETI engines that power the platform. Every article is reviewed against the current SARS BRS and Basic Conditions of Employment Act before publication.
- SARS registered tax practitioners
- SAPA-affiliated payroll administrators
- BCEA and LRA compliance reviewers
Last updated 26 Aug 2026
Step 1 — Register for PAYE with SARS
Register on SARS eFiling under Organisations, or submit an EMP101 at a SARS branch. You will need the company registration documents, the public officer's ID, proof of business address and banking details.
SARS issues a PAYE reference number beginning with 7. This number appears on every EMP201, EMP501 and IRP5 you file.
- Deadline: within 21 business days of becoming an employer
- Channel: SARS eFiling (Organisations → Register new) or EMP101
- Needed: CIPC documents, public officer ID, proof of address, bank details
- Output: PAYE reference number (7xxxxxxxxx)
Step 2 — Register for SDL and UIF with SARS
SDL registration is done on the same SARS form. It is compulsory once your total annual payroll exceeds R500,000, and the levy is 1% of remuneration paid monthly with the EMP201.
SARS also registers you for UIF for the purpose of collecting the 2% on the EMP201 — but this does not replace the Department of Labour registration in step 3, which is what makes employee claims payable.
Step 3 — Register for UIF with the Department of Labour
Register the business on uFiling or complete forms UI-8 (employer) and UI-19 (employee declaration). This is the register that Labour uses to validate unemployment, maternity and illness claims.
Employers who only register with SARS and skip uFiling routinely find their employees' claims rejected years later, so complete both.
- Channel: ufiling.labour.gov.za or a Labour Centre
- Forms: UI-8 / UI-8D (employer), UI-19 (monthly employee declaration)
- Declare joiners and leavers every month
- Issue UI-2.7 and a service certificate on termination
Step 4 — Register for COIDA
Register with the Compensation Fund using form W.As.2 through CompEasy. Every employer with one or more employees, including household employers, must register and submit an annual Return of Earnings (W.As.8) by the annual deadline.
A valid Letter of Good Standing is often required to win tenders and to work on client sites.
Step 5 — Set up payroll and file monthly
Once registered, the monthly cycle is: run payroll, issue payslips, submit the EMP201 and pay PAYE, UIF and SDL by the 7th of the following month, and file the UI-19 with Labour. Twice a year the EMP501 reconciliation is due, with IRP5 certificates for employees.
Payroll Africa handles all of it from one company setup — tax numbers captured once, EMP201 totals produced automatically each month, EMP501 and IRP5 files generated at reconciliation time, and UI-19 data ready for uFiling.
- EMP201 and payment: by the 7th of the following month
- EMP501 reconciliation: interim (September) and annual (May)
- IRP5/IT3(a) certificates: issued with the annual reconciliation
- COIDA Return of Earnings: annually
- Late EMP201: 10% penalty plus interest
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