InOfficePlus
Compliance · 6 min read

South Africa payroll compliance checklist

Use this checklist to test whether your South African payroll would survive a SARS or Department of Employment and Labour review. Each item is a common finding we see when taking over payroll from an in-house or offshore provider.

1. Registrations

Before the first payslip is issued, the employer must be correctly registered.

  • SARS PAYE registration
  • UIF registration with SARS and the Department of Employment and Labour
  • SDL registration where the annual payroll exceeds the threshold
  • Compensation Fund (COIDA) registration and annual return

2. Monthly obligations

These recur every month and are the most common source of penalties.

  • EMP201 filed and paid by the 7th of the following month
  • PAYE, UIF and SDL calculated on current SARS tables
  • Payslips issued to every employee
  • UIF declarations updated for new hires and terminations

3. Annual and bi-annual obligations

Reconciliation failures usually surface long after the error was made.

  • EMP501 interim and annual reconciliations submitted
  • IRP5 / IT3(a) certificates issued to employees
  • COIDA return of earnings filed

4. Employment and records

Payroll compliance is inseparable from employment compliance.

  • Written employment contracts aligned with the BCEA
  • Leave balances tracked, including the 21-day annual leave minimum
  • Correct treatment of allowances, reimbursements and fringe benefits
  • Payroll records retained for at least five years
  • Contractors tested against employee-classification criteria

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Frequently asked questions

When is EMP201 due in South Africa?+

By the 7th of the month following the payroll month, or the last business day before it if the 7th falls on a weekend or public holiday.

How long must payroll records be kept?+

Payroll and employment records should be retained for at least five years.

Can you audit our current payroll?+

Yes. We run a compliance review before takeover and flag any historical exposure we find.

Want a payroll compliance review?

We'll review your South African payroll setup and report what needs fixing.

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