EMPLOYEES’ TAX [PAY-AS-YOU-EARN (PAYE)]

 What's New?

  • 14 July 2017 - Omission of source code 4582
    With the implementation of the Retirement Reform requirements, information code 4582 (remuneration portion of income included under income codes: 3701 Travel Allowance, 3702 Re-imbursive Travel Allowance, 3802/3816 Use of Employer provided Vehicle) and its value were omitted from the submission file created by e@syFile™ Employer. Here is what Employers should do and what Employees should do, click here.

  • 6 July 2017 - e@syFile™ Employer version 6.7.5
    Kindly note that the SARS e@syFile Employers application has been updated to version 6.7.5 on Saturday, 8 July 2017.  The update is to allow for the uploading of the new source code 4582 (implemented from 2017) and to ensure the correctness of re-submissions done via the ‘e@syFile Utilities’ menu.
      
     

  • 13 April 2017 - External Business Requirement Specification (BRS): PAYE Employer Reconciliation (August 2017 Release)

    In preparation for the 2017/2018 year of assessment, we have released an updated external business requirement specification (BRS): PAYE Employer Reconciliation (August 2017 Release) specifying the changes.

    ​Business Requirement Specification
    ​       Year Applicable​                 Submission dates*​                       
    BRS - PAYE Employer Reconciliation for 2017 / 2018 ​2018 Annual Employer Reconciliation
    (1 March 2017 - 28 February 2018)
    Interim: 10 Sep - 31 Oct 2017
    Annual: 1 Apr - 31 May 2018 
     
    BRS - PAYE Employer Reconciliation for 2016 /2017​  2017 Annual Employer Reconciliation
    (1 March 2016 – 28 February 2017)
    Interim: 10 Sep - 31 Oct 2016
    Annual: 1 Apr - 31 May 2017

The final submission periods are subject to business requirements / readiness and calendar working day dates. Final confirmation will be communicated at the time of the relevant submission period. 

What is PAYE?

Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The process of deducting or withholding tax from remuneration as it is earned by an employee is commonly referred to as PAYE.
 
An employer who is registered or required to register with SARS for PAYE and/or Skills Development Levy (SDL) purposes, is also required to register with SARS for the payment of Unemployment Insurance Fund (UIF) contributions to SARS. You can register once for all different tax types using the client information system.

Who is it for?

The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or Employment Tax Incentive (ETI), if applicable. A unique Payment Reference Number (PRN) will be pre-populated on the EMP201, and will be used to link the actual payment with the relevant EMP201 payment declaration.

How and when should it be paid?

It must be paid within seven days after the end of the month during which the amount was deducted. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.
 
The following payment methods are available (effective from 1 April 2016):
  • eFiling
  • Electronic payments (EFT)
  • Payments at a bank: All payments can be made at any ABSA, Albaraka Bank Limited, Bank of Athens, Capitec, FNB, Habib Bank Zurich (HBZ), HSBC, Nedbank, Mercantile or Standard Bank branch.
  • Manual forms of payments will no longer be accepted by SARS. Cheques posted / delivered to SARS will be returned to the client.

Note: Please note that these changes exclude Customs.

Note:

Employers who pay, or are likely to pay Employees’ Tax exceeding R10 million in any 12-month period, must submit Employees’ Tax declarations and make payments electronically.
 

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Last Updated: 04/08/2017 9:25 AM     print this page
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 Top FAQs

e@syFile™ Employer gets stuck on the "processing" message after start-up or logging in, how do I fix this?
When opening e@syFile™ Employer, JAVA is used to decrypt the protected database to allow access once the user verifies their login name and password. Due to the recent JAVA updates

While downloading the latest version of the easyFile™ Employer, my anti-virus identified a virus and deleted any e@syFile™ Employer files already installed. Is there a virus on e@syFile™ Employer?
No, easyFile™ Employer is not infected by a virus. Make sure you have set your anti-virus to accept e@syFile™ Employer.

​I get a 'duplicate' status on reconciliation when there are no changes in the figures declared on the EMP501on e@syFile?
A reconciliation consists of multiple documents which can include a combination of the EMP501, IRP5/IT3(a) and EMP601. Updates made on these documents may or may not affect the figures declared on the EMP501.

Is it possible to increase your ETI liability or utilised amounts from what was initially declared?
No, you are not allowed to increase your ETI liability or utilised amounts from what you initially declared. This is according to legislation.

What to do if the EMP501 reconciliation was submitted for the incorrect period?
If you have submitted your 201608 EMP501 reconciliation, but you selected the 201702 period by mistake, the system will not allow you to capture and submit any EMP201 returns for the months of September 2016 to February 2017.