South Africa: Reminder of employer tax obligations

Employers have limited time to determine that the payroll for the year ending February 2022 is accurate.

Employers have limited time to determine that the payroll is accurate.

The South African tax year for natural persons and for employment taxes runs from 1 March to 28-29 February.

Reporting obligations for employers include:

  • Employees’ tax (“pay-as-you-earn”—PAYE)
  • Unemployment insurance fund contributions (UIF)
  • Skills development levies (SDL)
  • Employment tax incentive (ETI)

With tax year-end fast approaching, employers have limited time to determine that the payroll for the year ending February 2022 is accurate—including PAYE and UIF withholdings—and that the SDL remittances have been paid to the South African Revenue Service (SARS) as well as correct disclosure of remuneration on the annual employees’ tax certificates (forms IRP5).

Following the tax year-end, employers have three months until 31 May 2022 to prepare and submit the annual employer declaration (form EMP501) to SARS. In relation to the current tax year, SARS must receive all PAYE, UIF and SDL payments by 7 March 2022 to avoid potential penalties and interest being assessed by SARS.

Read a February 2022 report [PDF 255 KB] prepared by the KPMG member firm in South Africa

 

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