Payroll

“What is payroll?”

Payroll is the process of paying your employees, but it’s more than just sending money to their bank accounts.

It includes:

  • Calculating salaries or wages
  • Deducting taxes like PAYE, UIF, and possibly SDL
  • Submitting monthly tax returns (EMP201) to SARS
  • Making sure employees are paid accurately and on time

If you have staff, payroll is one of the most important admin tasks your business must manage.

“What does payroll involve?”

Running payroll typically includes:

  • Tracking working hours, overtime, leave, and bonuses
  • Calculating gross pay (total salary) and net pay (after deductions)
  • Deducting:
    • PAYE: income tax
    • UIF: unemployment insurance
    • SDL: skills development levy (if your total payroll is over R500,000/year)
  • Paying your employees
  • Submitting EMP201 returns to SARS every month
  • Issuing payslips and keeping payroll records

“Who needs to run payroll?”

Any business that employs staff (even just one employee) needs to run payroll properly and stay compliant with SARS and labour laws.

Whether your team is full-time, part-time, or temporary, they should:

  • Have a signed employment contract
  • Be registered for UIF
  • Be paid according to the Basic Conditions of Employment Act (BCEA)

“How often is payroll run?”

Most businesses run payroll monthly, but it can also be done weekly or fortnightly, depending on how your employees are paid.

You also need to meet important deadlines, like submitting monthly EMP201 forms and making payments to SARS by the 7th of each month.

“What happens if payroll isn’t done correctly?”

If payroll is mismanaged:

  • Employees may be underpaid or overpaid
  • You could miss tax deadlines and incur penalties from SARS
  • Your business could face legal or compliance issues
  • It can create trust issues with your team
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