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

 What's New?

 

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  • 1 September 2016 - Employer Interim Reconciliation 2016
    Employers were required to submit an EMP501 confirming or correcting the amounts declared for Pay-As-You-Earn (PAYE), Skills Development Levy (SDL),Unemployment Insurance Fund (UIF), and Employment Tax Incentive (ETI) in their EMP201s submitted, the payments made and the tax values of the Employee Tax Certificates [IRP5/IT3(a)]. The interim reconciliation was for the six-month transaction period 1 March to 31 August and must be submitted during September and October.

    For the 2016 Employer Interim Reconciliation the following legislative and system changes should be noted:
    • From 1 March 2016 contributions to Pension, Provident and Retirement Annuity Fund is deductible for payroll taxes
    • New source codes (3817, 3825, 3828) have been created to differentiate between Pension, Provident and Retirement contributions and new source code (4582) to indicate the total value “remuneration” portion where the source codes allow a 20/80 split
    • Medical expenses tax credit for people over 65 years who are still employed have been introduced
    • New source code(4120) has been created  to capture the additional medical expenses tax credit for employees over 65 years
    • Taxpayers will be able to submit a request for correction in relation to audited periods after the audit has been completed. Audit outcomes will be communicated to taxpayers via listed email on SARS records, posted letters will only be sent to taxpayers who do not have an email listed under their profile
    • EMP 501 has been updated to enable employers to print both EMP 501 and IRP5/IT3 (a) as a package. There is also an option for taxpayers to write the postal address in their preferred unstructured format
    • e@syfileTM Employer enhancements include an upgrade to Windows 8, and bulk printing of IRP5/IT3(a) certificates
    • Capturing of an EMP 201 return prior to 1999 will be allowed

  • 22 August 2016 - Employer Mid-Year Reconciliation started on 1 September 2016

    Employers were required to submit their Pay-As-You-Earn (PAYE) Employer Annual Reconciliations Declarations (EMP501) between 1 September and 31 October 2016 to SARS, confirming or correcting payroll tax amounts which were declared during the period 1 March – 31 August 2016.

  • 18 April  - 2016 - Employer Annual Reconciliation
    The Employer Annual Reconciliation started on 18 April 2016. Get ahead, start gathering your information and subscribe to our RSS feeds to stay informed. Get the latest information now.

  • 1 April 2016 - Employer Annual Reconciliation

    Employers were required to submit their Pay-As-You-Earn (PAYE) Employer Annual Reconciliations between 18 April and 31 May 2016 to SARS, confirming or correcting payroll tax amounts which were declared during the 2015/2016 tax period.

    This year, employers were urged to accurately verify and update each employee’s personal and financial details before submitting their Annual Reconciliation Declaration (EMP501) and Employees Income Tax Certificates [IRP5/IT3(a)s] to SARS.

    Should these details be incorrect on an IRP5 certificate, the employee will be unable to file his/her Income Tax Return for Individuals (ITR12) during Tax Season.  Individuals will no longer be allowed to make any corrections to pre-populated IRP5 details on their returns.

    In cases where details are incorrect, employees will have to revert to their respective employers who will need to make changes on the IRP5 and re-submit these to SARS. This process can be time consuming and it may become problematic for employees to file on time.

    Employers play a very important part in the income tax cycle which effectively started on 18 April with the submission of the annual reconciliations. We rely on your cooperation to make the submission of ITR12s later in the year as stress-free as possible for all involved. Need help? Call the SARS Contact Centre on 0800 00 7277.

  • 20 January 2016 - The 2017 BRS for PAYE Employer reconciliation is published:
​Business Requirement Specification
​Year Applicable
BRS - PAYE Employer Reconciliation for 2017​  NEW! ​2017 Annual Employer Reconciliation
(1 March 2016 – 28 February 2017)
BRS - PAYE Employer Reconciliation for 2015/16
2016 Annual Employer Reconciliation
(1 March 2015 - 29 February 2016)
and
2015 Annual Employer Reconciliation
(1 March 2014 - 28 February 2015)​
 

What is it?

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.

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: 02/11/2016 9:35 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.