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South African compliance South African compliance · Payroll

South African payroll on Dynamics 365: PAYE, UIF, SDL and COIDA.

South African payroll is a statutory cycle, not a calculation: monthly EMP201 payments, twice-yearly EMP501 reconciliations and a tax year that ends in February. Business Central does not ship it. This is how it connects to your ledger.

← South Africa hub

What a South African payroll has to handle

Each deduction has its own base, rate and filing channel.

PAYE: banded income tax with rebates and medical-scheme credits, withheld each pay run
UIF: employee and employer contributions to the Unemployment Insurance Fund, up to an earnings ceiling
SDL: the Skills Development Levy, payable once payroll passes the legislated threshold
COIDA: the annual return of earnings and assessment for the Compensation Fund
Other: retirement-fund contributions, benefits in kind, garnishees and the Employment Tax Incentive where applicable

The statutory calendar

Employers pay PAYE, UIF and SDL to SARS with the monthly EMP201 declaration, by the seventh of the following month. Reconciliations are filed on the EMP501: an interim reconciliation for March to August (due at the end of October) and an annual one for the tax year ending February (due at the end of May), with IRP5 and IT3(a) certificates issued from it. The calendar drives payroll close, bank runs and the ledger reconciliations that sit around them.

What PayrollFlow 365 does

PayrollFlow 365 is our global, parameter-driven payroll, on Finance & Operations or Business Central, with statutory content for South Africa, Kenya and Nigeria published and maintained by us.

Earnings, PAYE, statutory deductions and reliefs, updated with legislation
Joiners, leavers and benefits in kind
Approval workflows with segregation of duties
GL posting by dimension, payslips, bank files, remittances and statutory returns
Employee self-service and a payroll role centre on Business Central

Into the ledger cleanly

One journal per pay run by department and cost centre. Separate liability accounts for PAYE, UIF, SDL and any retirement or medical funds. Each liability reconciled to its EMP201 and its payment. We design that with finance in the Design phase.

How an engagement runs

It starts with a 45-minute consultation, then a discovery and fit-gap workshop on your own processes. You receive a written fit-gap and a phased plan before a programme is agreed. Four phases follow, each with something you can use and review.

01

Discover

Process workshops, data audit, and a fit-gap against the standard product.

02

Design

Solution blueprint, integration map, and the extensions we will actually need.

03

Deploy

Configuration, migration rehearsal, role-based training, UAT and phased cutover.

04

Support

Hypercare, managed services, client portal, scheduled optimisation reviews.

What drives the cost: users, legal entities and currencies, integrations, data migration and the gaps found against standard. See how pricing works or run the three-minute readiness score.

Frequently asked questions

Does Business Central include South African payroll?

No. Business Central does not include South African statutory payroll. PayrollFlow 365 provides it on a global, parameter-driven core, or we integrate the payroll system you already use.

Who keeps PAYE tables up to date?

In PayrollFlow 365, statutory calculations are updated with legislation. We confirm the current tables and effective dates with you before each change.

Can it produce IRP5 and EMP501 data?

PayrollFlow 365 produces statutory returns and remittances. We confirm the exact SARS file and reconciliation outputs for your setup in discovery.

Can payroll run for South Africa and Kenya together?

Yes. PayrollFlow 365 is a global, parameter-driven payroll, so several countries run on one core and post to one ledger. We publish statutory content for South Africa, Kenya and Nigeria and configure other countries' parameters with you.

General information, not tax or legal advice. Rates, thresholds, due dates and filing rules change; confirm the current position with SARS, the relevant regulator or your registered tax practitioner before relying on it.

Last reviewed 2026-10-11

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