TWK RADIUS fund is to compensate employees for injuries, disablement, diseases or death sustained or contracted from injury or disease in the course of their
An employer is also required to be registered for occupational injuries and
employment.
disease insurance (OID).
Leave
If a company should start paying an employee before the registrations
South African employees are entitled to a minimum of three consecutive
are finalised, the relevant statutory bodies will charge a penalty of
weeks of paid leave per year. Employees can take four months’ unpaid
10% plus interest of 10,5% per month for all payments that should have
maternity leave, but they can claim from the UIF during this time.
been made while waiting on the registration process. In order to make
Employees who have been working for the same employer for a period
a payment to a statutory body, the company will require registration
longer than four months are also entitled to three days of paid family
numbers, and it is therefore good practice to start the registration process
responsibility leave per year, and domestic workers are entitled to five
at least three months prior to the intended date on which the company
days’ paid leave.
will start paying employees.
Sick leave is subject to the number of days worked per week: an
Conclusion
employee who works five days per week is entitled to 30 days of paid sick
Companies or employers who do not adhere to South African payroll
leave for every three-year cycle, and an employee who works six days
policies can suffer serious repercussions and should therefore strive to
per week is entitled to 36 days of paid sick leave for every three-year
maintain payroll compliance. It is also important to understand the
cycle. During the first six months of employment an employee is entitled to
different payments that are due to employees in order to adequately
only one day of paid sick leave for every 26 days worked.
plan cash flow and avoid interest and penalties for non-compliance with payroll requirements.
Registration requirements for a company A company must be registered in order to establish a legal entity to
This article serves only for informational purposes and is not intended to
process a payroll. All companies are required to have a physical business
convey or constitute legal or any other advice. It is not a substitute for
address and local bank account. Once the legal entity is established, the
advice from a qualified professional.
company is required to complete all payroll-related statutory registrations. The following is indicative of the time required for the various registration
References
processes:
https://www.cloudpay.net/resources/understanding-payroll-in-south-africa-what-
•
Registration with the Registrar’s office – one to six months
global-companies-need-to-know-about-south-africa-payroll
•
Registration with SARS for company income tax – one to six months
https://www.activpayroll.com/global-insights/south-africa
•
Registration with SARS for VAT – one to six months
https://www.rsm.global/southafrica/news/payroll-taxes-and-related-declarations
•
Registration with SARS for PAYE, UIF and SDL – two to three months
https://www.sars.gov.za/TaxTypes/PAYE/Pages/default.aspx
•
Registration with the Department of Labour for workman’s compensation – one to six months
•
Registration with the Department of Labour for unemployment benefits – one month
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