When you employ staff it means your business is growing and you’re providing employment not just for yourself but other people. Employing staff is extremely important but it also has tax implications. You will be responsible for deducting pay as you earn from their salary. So you must be registered for:
Pay as you earn (PAYE) and you must complete a Monthly Employer Declaration (EMP201).
You must also be registered for the Unemployment Insurance Fund (UIF) which provides short-term relief to workers when they become unemployed or are unable to work because of maternity or adoption leave, or illness. It also provides relief to the dependants of a deceased contributor.
Also the Skills Development Levy (SDL) which promotes learning and development in South Africa.
Finally, you should take a look at the Employment Tax Incentive (ETI) an incentive mainly aimed at encouraging employers to hire young and less experienced work seekers. It reduces the cost to employers of hiring young people through a cost-sharing mechanism with government. ETI was implemented on 1 January 2014. To find out if you are an eligible employer and whether you have qualifying employees click here.