In South Africa, payroll is indeed compulsory for employers. Here are some key points according to South African laws: Basic Conditions of Employment Act (BCEA): This act requires employers to provide employees with a payslip each time they are paid. The payslip must include details like the employee’s earnings, deductions, and net pay. Income Tax Act: Employers must deduct Pay-As-You-Earn (PAYE) tax from employees’ salaries and wages. This is a form of income tax that is deducted by the employer and paid directly to the South African Revenue Service (SARS). Unemployment Insurance Fund (UIF): Employers must deduct a portion of the employee’s salary for UIF and contribute an equal amount themselves. This fund provides short-term relief to workers when they become unemployed or are unable to work. Skills Development Levy (SDL): Employers must also contribute to the Skills Development Levy, which funds employee training and development programs. This is calculated as a percentage of the payroll. Occupational Injuries and Diseases Act (COIDA): Employers need to ensure they contribute to COIDA, which provides compensation for employees who are injured or contract diseases at work. By adhering to these laws, employers ensure they are compliant with South African labor regulations and contribute to the social security systems that protect employees.