Payroll compliance in South Africa isn’t complicated because the rules are “hard”. It’s complicated because payroll touches two worlds at the same time: SARS (tax and employer declarations) and the Department of Employment and Labour (payslips, records, employment particulars).
Miss one small step and it can snowball into penalties, admin stress, and awkward conversations with staff.
So instead of trying to remember everything in your head, use this as your practical payroll compliance checklist. Think of it as a monthly routine you can run like clockwork—especially if you’re growing and payroll is starting to feel high-risk.
What payroll compliance actually means
Payroll compliance means you can confidently answer “yes” to three questions:
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Did we calculate payroll correctly? (salary, deductions, employer contributions)
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Did we submit and pay SARS on time? (PAYE/UIF/SDL via EMP201; reconciliations via EMP501)
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Do we have the right employment and payroll documents on file? (payslips, written employment particulars, records kept correctly)
If you’re consistently compliant in these three areas, you’re already ahead of most small businesses.
The deadlines that trip employers up most often
Monthly EMP201 (the big one)
SARS requires employers to submit the EMP201 and payment within 7 days after month-end—typically by the 7th of the following month. If the 7th falls on a weekend or public holiday, it’s due on the last business day before.
This one deadline is behind a lot of “late PAYE submission South Africa” searches, because once you miss it, penalties and interest become a real possibility.
Late payment penalties (why “just one late month” gets expensive)
SARS’ employer guidance notes that a 10% penalty (plus interest) can be imposed on late payments or outstanding amounts for Employees’ Tax (PAYE), SDL or UIF contributions.
So the safest approach is to run payroll early enough that the EMP201 payment is never a last-minute scramble.
EMP501 reconciliations (don’t ignore these)
EMP501 is where SARS wants your monthly declarations and employee tax certificates to match up properly. Late submission can trigger administrative penalties equal to 1% of annual PAYE liability, increasing by 1% each month up to 10%.
(Exact reconciliation windows can change by year, so the rule of thumb is: keep your payroll tidy monthly so EMP501 is a simple “submit”, not a rebuild.)
PAYE, UIF and SDL basics you should have right
PAYE
PAYE is the employees’ tax you deduct from remuneration and pay over to SARS monthly via EMP201.
UIF
UIF contributions are generally 1% from the employee + 1% from the employer (total 2%), and SARS notes there’s a remuneration cap for UIF contributions (with the cap amounts specified by SARS).
SDL
If your total remuneration over the next 12 months is not expected to exceed R500,000, you may be exempt from SDL registration/payment.
SDL is a monthly obligation for those who are liable, and SARS’ SDL guidance supports that it’s paid within 7 days after month-end (as part of the broader monthly employment tax cycle).
Payroll documentation requirements employers often overlook
1) Written particulars of employment (your “contract basics”)
The Basic Conditions of Employment Act (BCEA) requires written particulars of employment when an employee starts. That includes things like employer details, employee role, place of work, and other key terms.
Even if you have a simple appointment letter, make sure it covers the essentials—and that you can find it quickly.
2) Payslips (what must be on them)
The Department of Employment and Labour’s payslip guide lists the key items: employer name/address, employee name/occupation, pay period, total wages, deductions, amount paid, and (where relevant) rates and hours.
Payslips aren’t just “nice to have”. They’re proof, they prevent disputes, and they protect you when questions come up.
3) Record keeping (yes, there’s a time requirement)
BCEA record-keeping rules include a three-year retention period from the date of the last entry for required records.
This matters more than people think—because when something goes wrong (a dispute, a query, a compliance check), the difference between stress and calm is usually whether your records are in order.
Payroll compliance checklist (use this monthly + quarterly)
Below is the “practical checklist” version. Keep it as a recurring internal routine.
Monthly (every pay run)
Make sure payroll inputs are correct before you even press “process”: starters, leavers, unpaid leave, overtime, commissions, allowances, reimbursements, benefits, deductions, and employee detail changes.
After processing, do a quick reasonableness check: do PAYE/UIF/SDL totals look in line with last month (allowing for changes)?
Issue payslips every pay period with the required information.
Submit and pay EMP201 on time (aim before the 7th).
File proof: payroll reports, payslips, EMP201 submission confirmation, and proof of payment—stored together per month.
Quarterly (or at least every few months)
Do a mini audit of employee files: do you have written particulars/contract basics for everyone?
Check UIF/SDL status is still correct for the business (especially if you’re hiring fast).
Reconcile payroll totals against your accounting records so EMP501 doesn’t become a panic later.
Annually (don’t leave it to the last week)
Prepare for EMP501 and employee tax certificates with your reconciliations already clean. Late EMP501 submission can trigger those 1%-to-10% admin penalties.
If you want the simplest “avoid penalties” strategy
Here it is: run payroll earlier than you think you need to.
If your monthly SARS deadline is the 7th, don’t run payroll on the 5th/6th and hope nothing goes wrong. Give yourself breathing room. Because once you’re late, SARS’ 10% penalty (plus interest) is the opposite of fun.
When expert payroll support becomes worth it
If you’re constantly worried about deadlines, corrections, or whether you’re “doing it right,” that’s usually a signal to tighten the system or outsource parts of it. Zuva’s payroll support is designed for exactly that: accurate payroll processing, consistent documentation, and clean monthly compliance—without the monthly stress.
