South African Revenue Service launches new employer monthly declaration form (EMP201)

South African Revenue Service launches new employer monthly declaration form (EMP201) form

11 March 2010

Employers submitting their monthly declarations (EMP201s) to the South African Revenue Service will be required to do so using a new EMP201 form for the March declaration, due on 7 April.

South African Revenue Service will no longer be accepting the old EMP201 form. Employers are required to complete their monthly declaration and submit it to South African Revenue Service on or before the seventh of each month according to the provisions of the fourth schedule to the Income Tax Act 58 of 1962.

The introduction of the new form is part of our efforts over the past two years to modernise and simplify tax processes in line with international best practices. This has seen the transformation of the tax process from a paper based, labour intensive process to an automated one.

The new form requires employers to only declare their payments, and not liabilities, to South African Revenue Service using a unique 19 digit payment reference number that is pre-populated on to the form. Employers will then reconcile their liabilities during the employer tax season using the employer reconciliation declaration (EMP501) form.

The payment reference number is an essential new addition. Employers will now be allowed to adjust previous declarations and reallocate credit amounts to other periods using the payment reference number. The payment reference number must also be used when making payments and lodging queries.

The EMP201 form has also been integrated, so that employers need only make one payment for pay-as-you-earn (PAYE), skills development levy and Unemployment Insurance Fund (UIF). These payments will then be recorded as the employer’s provisional liability for each tax type for the relevant period.

Last month South African Revenue Service launched a step by step guide to the new EMP201 to help employers get to grips with the new form and their payment requirements. Employers can visit the South African Revenue Service website link for the step by step guide or the e-filing website. They can also visit a South African Revenue Service branch, call the South African Revenue Service contact centre on 0800 00 South African Revenue Service (7277) or visit: http://www.sars.gov.za for more information.

South African Revenue Service will continue to keep employers informed as it works hard towards a seamless reconciliation process.

Issued by: South African Revenue Service
11 March 2010
Source: South African Revenue Service (http://www.sars.gov.za/)