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

 What's New?

  • 13 October 2017 - Reconciliation Workshop Schedule
    Need help with your recons? We will have consultants available at selected branches from 16 to 31 October 2017 to assist you, click here for the schedule.

  • 05 October 2017 – Refresh EMP201 return on eFiling
    If you are experiencing challenges with utilising ETI on your EMP201 even after correcting non-compliance, read more.

  • 22 September 2017 - Updated e@syFile™  Employer version 6.8.1 
    e@syFile™ Employer software has been updated from last week's version 6.8.0 to version 6.8.1, you can refer to the release notes for more details on the changes made to the software.
     
    e@syFile™ Employer version 6.8.1.

  • 15 September 2017 - August 2017 Employer Interim Reconciliation submissions open 15 September 2017
    The Employer Interim Reconciliation submission period is now open from 15 September and runs to 31 October 2017.
    During the Interim Reconciliation submission period, employers are required to submit an Employer Reconciliation Declaration (EMP501) and Employee Income Tax Certificates [IRP5/IT3 (a) s] for the six month period 1 March to 31 August 2017. The interim IRP5/IT3(a)s for the six month period 1 March to 31 August 2017 must not be issued to an employee unless it is a final certificate (where the employee has left the service of the employer or the employer ceased to be an employer on or before 31 August 2017).

    Changes which have been introduced:

    • New Income Source Codes 3719/3769, 3720/3770 and/or 3721/3771

      • Certain dividends in respect of restricted equity instruments are considered to be remuneration from which employees’ tax is deductible. When the above-mentioned codes are imported into or captured on e@syFile™ Employer or eFiling, a directive number will be required. You should enter fifteen zeros (0 x 15) as the directive number on the IRP5/IT3(a)s with these income source codes.

    • Updated version of e@syFile™ Employer

      • The updated version of e@syFile™ Employer, version 6.8.0, should be used when filing your interim reconciliation and is available for download on www.sarsefiling.co.za. It is very important that you back up the current information on your computer prior to installing a new version as the installation may delete your current information.

      • You can submit your Employer Reconciliation Declaration (EMP501) and Employees Income Tax Certificates [IRP5/IT3(a)s] online via e@syFile™ Employer, or if you have less than 50 employees, via eFiling.

    • Payroll Tax (PAYE, SDL and UIF) compliance

      • To avoid penalties being levied make sure that you submit your declaration by no later than 31 October 2017.

Please note:  You need to submit your Monthly Employer Declarations (EMP201) and payments to SARS by the 7th of each month. In instances where the 7th falls on a public holiday, Saturday or Sunday, the due date becomes the last business day prior to the 7th. When making payment, make sure to use the correct Payment Reference Number (PRN) so that your payments are correctly allocated.

  • 29 August 2017 - Employer Interim Reconciliation
    The Employer Interim Reconciliation will open on 15 September and run to 31 October 2017.

    During the Interim Reconciliation, employers are required to submit an Employer Reconciliation Declaration (EMP501) and Employee Income Tax Certificates [IRP5/IT3(a)s] for the six month period 1 March to 31 August 2017.

    Very importantly, employers must utilise the latest version of e@syFile Employer™ to file their reconciliation. We will inform you in due course about enhancements that will be introduced to the EMP501 and which version of e@syFile Employer™ you should download. Employers with 50 or less employees are reminded that they will be able to submit their returns via SARS eFiling without having to download e@syFile™.

  • 22 August 2017 - Correct foreign source code
    Kindly note that employers have to specify the foreign source income on the correct foreign source code on the IRP5 before an employee is able to claim the section 10(i)(o) exemption. Therefore employers will be required to re-issue IRP5’s that incorrectly reflect foreign source income on local source codes.
     You can refer to the BRS - PAYE Employer Reconciliation for 2017 /2018.

  • 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.

  • 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: 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.
 
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 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.
 

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

Last Updated: 17/10/2017 7:54 AM     print this page
SARS eFiling eFiling Login eFiling Register Now eFiling Forgot Password eFiling Forgot Username E@syFile
FIND A PUBLICATION
FIND A FORM
FIND AN FAQ

 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.