Easy Checklist for Payroll and HR Compliance
Tips to avoid penalties and stay compliant.
Payroll and HR compliance involves more than just paying salaries. From contracts and tax submissions to leave policies and employee records — it all adds up.
Use this checklist to ensure you’re meeting your obligations and protecting your business. Or outsource to MRBM and our experts will handle it for you!
✅ 1. Company & Employee Registration
- Ensure employment contracts comply with the BCEA
- Collect and verify employee ID documents, tax numbers, and bank details
- Submit IRP5/IT3(a) certificates annually
- Register foreign workers with the Department of Home Affairs, if applicable
✅ 2. Statutory Deductions & Contributions
- Calculate PAYE correctly and deduct monthly
- Submit SDL (1% of total payroll) if annual payroll > R500,000
- Deduct and contribute UIF (1% employer + 1% employee)
- Process retirement fund contributions (if part of the package)
- Include medical aid contributions (if applicable)
- Correctly apply fringe benefits tax (e.g., company car, housing)
✅ 3. Monthly & Annual SARS Submissions
- Submit EMP201 returns by the 7th of each month
- Make SARS payments timeously
- File EMP501 reconciliations in Feb and Aug
- Issue IRP5s after annual reconciliation
- Submit COIDA Return of Earnings (ROE) annually
✅ 4. Record Keeping (BCEA Requirement: keep for 3 years)
- Employee details, contracts, and payslips
- Payroll reports, attendance, and leave records
- Bonus structures and salary adjustments
- Disciplinary actions and termination documents
✅ 5. Labour Law Compliance
- Align contracts with BCEA, LRA, and EEA
- Provide written particulars of employment
- Implement leave and grievance procedures
- Meet Employment Equity requirements (if applicable)
- Appoint Health & Safety reps (20+ employees)
- Display mandatory labour law posters visibly
✅ 6. Terminations & Retrenchments
- Provide UI-19 and separation documents
- Pay outstanding remuneration correctly
- Submit final EMP201 and update payroll records
- Follow fair procedures as per LRA
- Comply with section 189 for retrenchments
✅ 7. Optional but Recommended
- Use compliant payroll software, like Sage
- Conduct regular internal audits
- Stay informed on updates to BCEA, SARS, UIF & COIDA
- Get advice from an employer organisation or HR expert
Need help with Payroll or HR compliance? Get in touch: info@mrbm.co.za / 031 818 9030.