What South African payroll actually involves
Every month your payroll must calculate gross-to-net correctly, apply the current SARS tax tables and file on time.
- PAYE withheld on employee earnings
- UIF contributions from employer and employee
- SDL where the annual payroll threshold is exceeded
- EMP201 monthly declaration and payment to SARS
- EMP501 bi-annual reconciliation and annual IRP5 certificates
The typical monthly cycle
A clean payroll cycle removes month-end panic and gives finance a predictable close.
Inputs
You send new hires, leavers, leave, bonuses and commission changes by an agreed cut-off.
Processing
We calculate net pay and statutory deductions, then send a payroll register for your approval.
Release
Payslips are distributed, the bank file is prepared and the EMP201 is filed with SARS.
Reporting
You receive GL journal exports ready for your accounting system.
Common pitfalls for foreign-owned businesses
The most expensive payroll errors are structural, not arithmetic: incorrect treatment of allowances and fringe benefits, missed EMP501 reconciliations, contractor misclassification, and leave balances that were never tracked and surface as a large liability at termination.
No South African entity yet?
Payroll requires a registered employer. If you have not incorporated, pair payroll with our EOR service so your team can be paid compliantly from day one.