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PAYE Employer Reconciliation for 2021 / 2022

2022 Annual Employer Reconciliation
(1 March 2021 – 28 February 2022) 
Interim: 13 Sep – 31 Oct 2021
Annual: 1 Apr – 31 May 2022

What is PAYE?

PAYE (Pay as you earn) is employees tax which the employer is to deduct off an employees salary on a monthly basis and submitted to SARS on an EMP201 form.

According to law, an employer must register with the South African Revenue Service (SARS) within 21 business days after becoming an employer, unless none of the employees are liable for normal tax.

View the current 2022 SARS PAYE tables to see if you are deducting the correct amount of PAYE off your employee’s salary.

Introducing SARS 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.

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.

The IRP5

The amounts reconciled on the monthly EMP201 will be used to populate an IRP5 for each employee, which the employer must furnish to his/her employees annually.

An IRP5 declares the amounts paid annually for each tax type reflected as source codes and must have all the employees information on it including the employees basic information such as address, contact number, tax reference number, PAYE & UIF number.

EMP501 Declarations

The information submitted on the IRP5 for each employee is captured onto the EMP501 declaration.

Employee tax certificates are submitted for the interim reconciliation (i.e. period 08 – March to August) and the annual reconciliation (i.e. period 02 – March to February).

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