An employer must pay a skills development levy every month if:

• The employer has registered the employees with SARS for tax purposes (PAYE), and/or
• The employer pays over R500 000 a year in salaries and wages to their employees (even if they are not registered for paye with SARS)
• An employer must pay 1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments)

The employer must register with SARS and pay the levy monthly. SARS will supply the correct forms to fill in (SDL 201 return form). The levy must be paid to SARS not later than 7 days after the end of every month.