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Revealed: When you should apply for employees tax, SDL and UIF!

by , 12 March 2015
When it comes to employees' tax, you, the employer, are obliged to register for employees' tax purposes if you pay remuneration to an employee who liable for normal tax. This registration must be done within 21 days of him becoming an employer.

Bear in mind that the registration process is the same for individuals.


And that's not all you need to do, you also need to register for SDL and UIF levies if you trade as a sole proprietor or partnership or operate as a  CC or trust.

Note: That if none of your employees earn above the tax threshold (i.e. there is no PAYE due to SARS), then you only need to register for UIF with the Department of Labour.

Confused about when to register and for what? Read on to find the answer

Skills Development Levy (SDL):

As the employer, you're obliged to register for SDL purposes unless there are reasonable grounds for believing that the total leviable amount paid/payable by you for all your employees during the following 12 month period will NOT exceed R500 000.

Unemployment Insurance Fund (UIF):

Keep in mind that if you're obliged to register for employees' tax purposes, you're also obliged to register with SARS for UIF contribution purposes.

Note that as mentioned above, if you won't be paying PAYE to SARS, you're only required to register with the Department of Labour.

Employees' Tax, SDL and UIF:

You'll pay this when any one of your employees is liable for normal tax AND there are reasonable grounds for believing that the total leviable amount paid/payable by you for all your employees during the following 12 month period will exceed R500 000. Rememner, you must register for Employees' Tax, SDL and UIF purpose with SARS.


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Employees' Tax and UIF only:

You'll pay this when any one of your employees is liable for normal tax AND there are reasonable grounds for believing that the total leviable amount paid/payable by you for all your employees during the following 12 month period will NOT exceed R500 000, you'll be obliged to register for Employees' Tax and UIF with SARS.

SDL and UIF only:

In this case, none of your employees is liable for normal tax AND there are reasonable grounds for believing that the total leviable amount paid/payable by you for all youremployees during the following 12 month period will exceed R500 000,.
Where you only have to pay UIF, you'll be obliged to register for UIF with SARS or with the Department of Labour




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