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Pay As You Earn

What’s New? 

The penalty for late filing of a Pay-As-You-Earn (PAYE) reconciliation was introduced for the first time this year.  However, we are still in the process of enhancing our Dispute Resolution process so that this penalty can be disputed separately from a PAYE late payment penalty.

In the event that you receive another PAYE penalty for the same tax period, you will not yet be able to do a Request for Remission or lodge an Objection against the added penalty on eFiling when your prior Request for Remission or Dispute has already been finalised.

Our enhancements to the Dispute Resolution process should be ready soon, but in the event that you wish to do a Request for Remission or Dispute in relation to such an added penalty, SARS will as an interim measure accept a written Request for Remission or ADR1/ADR2  forms in relation to the added PAYE penalty.  

To make use of the interim process to submit a Request for Remission, Notice of Objection or Notice of Appeal, please follow these steps:

Step 1

Check on eFiling that the penalty amount for which you wish to request remission, object or appeal against is indeed blocked from being submitted.  If eFiling blocks you then proceed to Step 2.

Step 2

Type or write a Request for Remission, and make sure that you include the reason for your request as well as the PAYE reconciliation period or transaction numbers of the penalties incurred or the EMP201 periods.  Before you do all of this please visit the Request for Remission of Administrative Non-compliance penalty webpage to understand the legislative requirements.

If you already submitted a Request for Remission but you remain aggrieved by the outcome then use the ADR1 form in the case of an objection.  If you already objected and the objection was dismissed, and you wish to appeal, then use the ADR2 form.  The ADR1 and ADR2 forms can be downloaded here https://www.sars.gov.za/find-a-form/.

Step 3

Submit your Request for Remission, ADR1 or ADR2 to [email protected] or [email protected]You will receive a case number which must be used in any future correspondence with SARS relating to this matter.

Step 4

Once we have considered the request for remission, objection or appeal, SARS will notify you by way of a letter addressed to your preferred channel of communication.

  • 30 June 2021 – [email protected] version 7.1.4 was released
  • 28 June 2021 – [email protected] version 7.1.3 was released
  • 8 June 2021 – Updated PAYE BRS Employer Reconciliation version 20.0.1
  • 7 June 2021 – [email protected] version 7.1.2 was released
  • 1 June 2021 – Employers Filing season is now closed. It was open from 1 April to 31 May 2021. You may still submit, but please note that penalties may apply.
  • 19 May 2021 – Watch our YouTube video on the consequences of non-compliance for PAYE tax by clicking on the image below:
  • 6 May 2021 – Updated PAYE BRS Employer Reconciliation version 20.0
  • 6 May 2021[email protected] version 7.1.1 was released
  • 15 March 2021 – Employer Annual Reconciliation: 1 April 2021 to 31 May 2021

    SARS constantly strives to improve its service offering to taxpayers. Changes introduced to SARS’ systems are a vital part of our vision to have a more accurate reconciliation process.  Correct information submitted on time to SARS leads to a seamless tax experience for both employees and employers. For more information, please read the letter to our stakeholders.

  • 8 March 2021 – Preparation for annual Employers Filing Season

    SARS calls on employers to ensure that they are ready to submit their annual reconciliation declarations with the latest and most accurate payroll information about their employees and the tax they have deducted.

    The data that must be submitted to SARS from employers should cover the Monthly Employer Declarations submitted, payments made and Tax Certificates (IRP5/IT3) (a)s generated, covering the full tax year from 1 March 2020 to 28 February 2021.

    Employers have from 1 April 2021 to 31 May 2021 to submit their data to SARS.

Business Requirement Specifications (BRS) and timelines

Business Requirement Specification
       Year Applicable                 Submission dates*                       
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 Declaration (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.

To access this page in different languages click on the links below:

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

GEN-ELEC-21-G01 – How to download the new SARS eFiling Browser – External Guide

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

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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