A payment, in the payroll sense, is the act of paying over to SARS the tax and levies an employer has declared. It is the half of the monthly cycle that actually moves money, as opposed to the declaration that states what is owed.
What it means
When the employer runs payroll it withholds PAYE and the employee's UIF, and raises its own UIF and SDL. Those amounts become a liability owed to SARS. The payment clears that liability. The declared figure on the EMP201 and the amount paid must match.
Where it fits in
Each month the employer declares on the EMP201 and pays the same total across to SARS, both by the seventh of the following month. The payment carries a payment reference number (PRN) so SARS can match it to the right employer and period. Late or short payment attracts a 10% penalty plus interest.
Key rules
- Due monthly together with the EMP201, by the seventh of the following month or the prior business day.
- The amount paid must equal the liability declared for the period.
- Allocated to SARS using the payment reference number for that period.
- Late or short payment carries a 10% penalty plus interest.
