Pay as you earn (PAYE): tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid. The employer is compelled to register in terms of paragraph 15 of the 4th Schedule to the Income Tax Act.
Unemployment Insurance Fund (UIF): this is a compulsory contribution to fund employment benefits. The funds are utilised to offer short-term relief in the event that workers become unemployed or unable to work for various reasons. Any employer who is liable to register for the employees tax (PAYE) is compelled to register with SARS for the unemployment insurance contributions. According to the Unemployment Insurance Act and the Unemployment Insurance Contributions Act, all employees working more than 24 hours per month must be registered with the UIF. The employer is responsible for the registration of the employees. Employers must pay unemployment insurance contributions of 2% of the salary of each worker’s pay per month. The employer covers 1% and the employee another 1%. The employer is responsible for withholding the employee’s 1%. The payment is done through SARS but the employee claims are requests through the UIF. The employer must submit the forms UI-8 (company registration) and UI-19 (employees registration)
Skills Development Levy (SDL): this levy is used by the government to fund education and training as stated in the Skills Development Act, 1998. This levy is payable monthly by employers to SARS.