A declaration is a formal statement an employer makes to SARS setting out the amounts it has withheld and the liability it owes for a given period. The monthly EMP201 is the central payroll declaration.
What it means
Declaring is separate from paying. The declaration tells SARS how much PAYE, UIF and SDL the employer is accountable for in the period; the payment then settles that stated amount. Declaring the wrong figure, or declaring and not paying, both create compliance problems even when the other half is correct.
Where it fits in
The EMP201 is declared monthly and the EMP501 reconciliation is declared twice a year (interim and annual). Each declaration must agree with the underlying payroll and, ultimately, with the IRP5 certificates issued to employees. The UIF declaration (UI-19) separately reports employees and their status to the UIF.
Key rules
- The EMP201 is due monthly, by the seventh of the following month (or the prior business day).
- A declaration states the liability; a separate payment settles it.
- Monthly declarations must reconcile to the EMP501 and to employee IRP5 totals.
- Over- or under-declaring triggers penalties and interest until corrected.
