SARS Modernisation Project
In February 2022, SARS first announced its steps towards becoming a 'future revenue authority informed by data-driven insights, self-learning computers, AI and interconnectivity between people and devices.' The project was initiated with the aim of enabling SARS to be 'a smart and modern organisation, with unquestionable integrity, trusted by government, the public and our international peers.'
The modernisation project aims to enable accurate and timely withholding of taxes from employees and their payments to SARS.
It will:
- reduce the payroll administration for employers, payroll administrators and SARS,
- enable employees to monitor their tax obligations during the tax year,
- simplify the annual returns process for employers, and
- relieve, in the long term, the necessity for most salaried employees to file annual tax returns
What does the modernisation project mean for employers?
From 1 March 2025, employers will be required to submit payroll data monthly.
The traditional Interim and Annual EMP501 Reconciliation submissions will no longer be necessary. They will be replaced by monthly submissions that will merge the EMP201 with detailed monthly employee tax data.
Detailed guidelines on this new process are outlined in the PAYE Monthly Submission External BRS (see link below).
To ensure seamless transition and compliance, PaySpace has proactively embarked on a project to incorporate these changes into our system by 1 March 2025. As ever, our commitment is to offer you uninterrupted, top-notch payroll services as we navigate these changes together.
Stay tuned for more updates, which we'll share as they are made available.