Payroll Compliance Checklist

Process payroll and generate payslips

Issue payslips on or before pay day

Calculate and deduct PAYE

Use latest SARS tax tables. Verify age rebates.

Calculate and deduct UIF (employee 1%)

Cap at R177.12 for salaries above R17,712

Calculate employer UIF (1%)

Employer cost — not deducted from employee

Calculate SDL (1%)

Only if annual payroll exceeds R500,000

Submit EMP201 return via eFiling

Declare PAYE, UIF and SDL totals to SARS

Pay PAYE, UIF and SDL to SARS

Pay via eFiling, EFT or at SARS branch

Update employee leave balances

Accrue annual leave (1.25 days/month) and sick leave

Submit interim EMP501 reconciliation

Covers March–August. Import into SARS e@syFile

Submit annual EMP501 reconciliation

Covers September–February. Issue IRP5 / IT3(a) certs

Issue IRP5 and IT3(a) tax certificates

Provide to all employees after annual recon

Update tax tables for new tax year

SARS announces new brackets each February/March

Update National Minimum Wage rate

Annual increase effective 1 March each year

Review SDL exemption threshold

Check if annual payroll crosses the R500,000 threshold

File annual Workplace Skills Plan (WSP)

Required to claim mandatory SDL grant back from SETA

Renew tax clearance / Good Standing

Required for tender submissions and partner applications

Retain payroll records for 5 years

Required by the BCEA and Tax Administration Act

Keep payslips and EMP201 records

Must be available for SARS audit on request

Store employment contracts securely

Retain for duration of employment + 3 years

Keep IRP5 / IT3(a) copies

Retain copies of all tax certificates issued