Pay As You Earn for Employers
Pay As You Earn for Employers – commonly known as PAYE – refers to deducting or withholding personal income tax (by an employer) from an employee’s paid or payable remuneration. See How to register for PAYE on eFiling.
Pay As You Earn for Employers – What is it?
An employer registered or required to register with SARS for PAYE and/or Skills Development Levy (SDL) purposes must also register with SARS to pay Unemployment Insurance Fund (UIF) contributions to SARS. Using eFiling, you can register once for all different tax types.
How is PAYE processed?
The amounts deducted or withheld (according to the tax rates) from the employee’s remuneration must be paid by the employer to SARS monthly by Completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment and 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 used to link the actual payment with the relevant EMP201 payment declaration.
Payment requirements:
PAYE must be paid to SARS 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: Employers can make payments at any ABSA, Capitec, FNB, Nedbank or Standard Bank branch.
- SARS will no longer accept manual forms of payments. Cheques posted/delivered to SARS will be returned to the client.
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 SARS.
Reconciliations:
- EMP201 – Submitted monthly – last working day before the 7th of the next month.
- EMP501 – Submitted annually – due 31 May 2024 for the 2024 tax year (March 2023 – Feb 2024).
Pay As You Earn (PAYE) – Onestop Accounting
Onestop Accounting has years of experience processing payrolls, issuing IRP5, and submitting EMP201 and EMP501 returns to SARS.
Contact Onestop Accounting if you require assistance with PAYE, IRP5s, EMP201 & EMP501s and avoid administrative penalties and interest payments to SARS.