SARS, the South African Revenue Service, is the government agency responsible for collecting tax and administering the country's tax law. For payroll it is the authority every employer registers with, declares to and pays over to.
What it means
SARS publishes the tax tables, rebates and thresholds that drive PAYE, sets the rules for UIF and SDL, and issues the directives that override the standard PAYE calculation. It receives employer declarations and payments and reconciles them against the certificates employers issue to employees.
Where it fits in
The employer's whole statutory cycle points at SARS: register for PAYE, withhold tax each pay period, declare the monthly totals on the EMP201, pay the liability, then reconcile for the year on the EMP501 with an IRP5 per employee. Most of this is done through SARS's online channels, eFiling and e@syFile Employer.
Key rules
- Sets the tax tables, rebates, thresholds and directives that payroll must apply.
- Receives monthly EMP201 declarations and the annual EMP501 reconciliation.
- Can recover under-deducted PAYE directly from the employer.
- Administers filings through eFiling and the e@syFile Employer tool.
