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Pay As You Earn

What’s New? 

  • 28 April 2022 – PAYE Employer Reconciliation BRS V21.1
    The BRS V21.1 has been updated with a new source code for Long Service Cash Awards and amended validation rules for source codes 3231, 3232, 3234, 7004 and the descriptions for source codes 3601, 3605, 3835, 4587, 7002.
  • 23 April 2022 – Pay As You Earn Admin penalties now available on eFiling 
    The South African Revenue Service (SARS) is committed to modernising its service offering to taxpayers and has introduced changes to its systems and processes.
    Please note that from today 23 April 2022, SARS will no longer accepts manually filed PAYE disputes and penalty remission requests. The PAYE request for remission or dispute process for Administrative penalties is now available on the existing eFiling platform. Employers can now dispute late payment penalties and administrative penalties online.  Click here to access the guide. 
  • 30 March 2022 – PAYE Annual Reconciliation 2022:
    Annual Reconciliation Declaration (EMP501) submission period opens on 1 April and closes on 31 May. Employers are required to submit their annual reconciliation declarations covering the full tax year from 1 March 2021 to 28 February 2022. For more detail on this year’s enhancements, submission channels and more, click here.
  • For the latest [email protected] release notes, see our [email protected] webpage.
  • See below for more on the PAYE timelines and the latest BRS.

Business Requirement Specifications (BRS) and timelines

Business Requirement Specification
       Year Applicable                 Submission dates*                       
BRS – PAYE Employer Reconciliation for 2022-20232023 Annual Employer Reconciliation (1 March 2022 – 28 February 2023) 

Interim:  19 Sep – 31 Oct 2022

BRS – PAYE Employer Reconciliation for 2021 / 20222022 Annual Employer Reconciliation
(1 March 2021 – 28 February 2022) 

Interim: 13 Sep – 31 Oct 2021
Annual: 1 Apr – 31 May 2022

BRS – PAYE Employer Reconciliation for 2020 /2021

2021 Annual Employer Reconciliation
(1 March 2020 – 28 February 2021)
Interim: 14 Sep – 31 Oct 2020
Annual: 1 Apr – 31 May 2021
BRS – PAYE Employer Reconciliation for 2019 / 20202020 Annual Employer Reconciliation
(1 March 2019 – 28 February 2020)
Interim: 23 Sep – 31 Oct 2019
Annual: 15 Apr – 31 May 2020
BRS – PAYE Employer Reconciliation for 2018 / 20192019 Annual Employer Reconciliation
(1 March 2018 – 28 February 2019)
Interim: 17 Sep – 31 Oct 2018
Annual: 1 Apr – 31 May 2019
BRS – PAYE Employer Reconciliation for 2017 / 20182018 Annual Employer Reconciliation
(1 March 2017 – 28 February 2018)
Interim: 15 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: 12 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. See How to register for PAYE on eFiling.

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.

Top Tip: The Employment Tax Incentive encourages employers to employ young workers by providing a tax incentive to the employers. Read more. 
 

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 return (EMP201). The EMP201 is a payment return 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:
  • eFiling
  • Electronic payments (EFT)
  • Payments at a bank: All payments can be made at any ABSA, Capitec, FNB, Nedbank 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.

The responsibility of the employer in respect of a deceased employee 

What obligation rests on the employer?

Paragraph 13(2)(b) of the Fourth Schedule to the Income Tax Act provides that an employer, who ceased to be an employer in relation to an employee, for example when an employee dies, is required to deliver an employees’ tax certificate within 14 days of the date on which employment ceased to the former employee (or to such deceased employee’s representative).

The employer must therefore deliver an employees’ tax certificate within 14 days after the employee passed away. The employer is required to provide the employees’ tax certificate to the executor acting as the representative taxpayer of the deceased employee. 

The provisions of paragraph 14(5) of the Fourth Schedule that states the employees’ tax certificate shall not be delivered until the EMP501 reconciliation was submitted to SARS is not applicable to the circumstances envisaged under paragraph 13(2)(b). An employer must therefore, in the case of an employee’s death, provide the employees’ tax certificate even if the reconciliation is not yet submitted.

What obligation rests on the executor?

The executor, as the representative taxpayer, is responsible to finalise the financial and tax affairs of the deceased employee efficiently and without any unnecessary delays. The executor should therefore ensure that the necessary documentation, like the employees’ tax certificate is obtained from the deceased’s employer.

Note: The provisions of paragraph 13(2)(b) also apply in the case of an employee who retired or resigned. The employer must ensure that the employees’ tax certificate is provided to the employee within 14 days after resignation or retirement. If the employer fails to provide the employees’ tax certificates, the employee must request it from the employer.   

Related Documents

EMP-GEN-02-G01 – A Guide to the Employer Reconciliation Process – External Guide

EMP101e – Application for Registration PAYE SDL UIF – External Form

EMP102e – Application for Separate Registration of Business or Branch – External Form

EMP123 – Application for Cancellation of Registration of a Person iro All His Business – External Form

EMP123T – Application for the Cancellation of Registration of a Separately Registered Business – External Form

EMP128 – Confirmation of Partnership – External Form

LAPD-ETI-G01 – Guide to the Employment Tax Incentive

LAPD-Gen-G01 – Taxation in South Africa

LAPD-Gen-G02 – Guide for Tax Rates Duties Levies

LAPD-Gen-G08 – Guide on the Taxation of Professional Sports Clubs and Players

LAPD-IT-G05 – Guide on the Employers Tax Responsibilities wrt Artists Models or Crew in the Film Industry

LAPD-IT-G19 – Comprehensive Guide to Dividends Tax

LAPD-IT-G24 – Guide on Mutual Agreement Procedures

LAPD-IT-G25 – Guide to the Exemption from normal tax of income from films

LAPD-VAT-G12 – VAT and PAYE NonExecutive Directors FAQs on BGRs 40 and 41

PAYE-AE-06-G06 – Guide for Codes Applicable to Employees Tax Certificates 2022 – External Guide

PAYE-AE-06-G07 – Guide for Validation Rules Applicable to Reconciliation Declarations 2022 – External Guide

PAYE-AE-06-G08 – Guide for Completion and Submission of Employees Tax Certificates 2022 – External Guide

PAYE-BO-SOP01-L03 – Application for Determination of Residential Benefit Value – EMPRB External form

PAYE-GEN-01-G01 – Guide for Employers in respect of Tax Deduction Tables – External Guide

PAYE-GEN-01-G02 – Guide for Employers in respect of Fringe Benefits – External Guide

PAYE-GEN-01-G03 – Guide for Employers in respect of Allowances – External Guide

PAYE-GEN-01-G04 – Guide for Employers iro Employees Tax for 2015 – External Guide

PAYE-GEN-01-G05 – Guide for Employers in respect of Employment Tax Incentive – External Guide

PAYE-GEN-01-G10 – Guide for Employers iro Employees Tax for 2016 – External Guide

PAYE-GEN-01-G11 – Guide for Employers iro Employees Tax for 2018 – External Guide

PAYE-GEN-01-G12 – Guide for Employers iro Employees Tax for 2017 – External Guide

PAYE-GEN-01-G13 – Guide for Employers iro Employees Tax for 2019 – External Guide

PAYE-GEN-01-G14 – Guide for Employers iro Employees Tax for 2020 – External Guide

PAYE-GEN-01-G15 – Guide for Employers iro Employees Tax for 2021 – External Guide

PAYE-GEN-01-G16 – Guide for Employers iro Employees Tax for 2022 – External Guide

PAYE-GEN-01-G17 – Guide for Employers iro Employees Tax for 2023 – External Guide

SDL-GEN-01-G01 – Guide for Employers in respect of Skills Development Levy – External Guide

UIF-GEN-01-G01 – Guide for Employers in respect of the Unemployment Insurance Fund – External Guide

VDP-EMP-01-G01 – Guide for Treatment of PAYE for VDP Purposes – External Guide

Frequently Asked Questions

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