What is an EMP201 & How does it work?
EMP201 Meaning
EMP201 is a tax return that is submitted by an Employer to SARS on a monthly basis. All Employers who deduct payroll tax from their Employees must submit EMP201. Payroll taxes include PAYE SDL and UIF deducted or withheld.
If the Employer is entitled to credits for example Employment Tax Incentive (ET), then this is taken into account with each payroll period.
Frequently Asked Questions
What is the difference between an employer declaration EMP201 and EMP501?
The EMP201 is a monthly employer declaration of payroll taxes and the EMP501 is a reconciliation based on the monthly payroll declarations. The EMP501 acts as an employment taxes validation.
What is SDL?
It is an acronym for Skills Development Levy SDL. Once a company's payroll exceeds R500k per annum then it is mandatory to register for SDL.
How do I calculate the amount of Employees tax?
Here is the SARS PAYE table to calculate the amount of PAYE to deduct - 2024 Monthly Tax Deduction Tables - External Annexure (sars.gov.za)
Who must pay for PAYE liability?
The Employee is liable for PAYE based on their income bracket. The deduction and paying over of payroll tax is the Employers to submit. See the deduction tables 2024 Monthly Tax Deduction Tables - External Annexure
What is the PAYE reference number for?
It is the tax number to which an entity's payroll taxes are attached. It provides for an audit trail of an entities payroll submissions.
When must EMP201 be submitted?
Your PAYE payment must reflect in SARS' bank account by the 7th of the month. If this date falls on a weekend then the last weekday preceding the weekend.
What is an EMP201 Example?
Here is an example of a blank EMP201 - EMP201 Example
What are the EMP201 penalties and interest?
PAYE paid late gets an immediate 10% late payment penalty. Thereafter interest is also added at SARS official interest rate of 10.5% (as from 1 March 2023)
Do you need our help with your EMP201 returns?
Contact our team via any of the following channels:
See what Zeelie Professional Accountants SA can do for you:
- Administration of Salaries and Wages
- Compensation and Benefits structuring
- Employment Contracts
- Full payroll function using high-quality payroll software
- Provision of a list of amounts payable to:
- - Employees
- - SARS
- - UIF
- - SDL
- - Third parties
- Payslips for employees before payday, which is a statutory requirement.
- Provision of annual IRP5's for all employees
- Registration for PAYE, UIF and Skills Development Levies
- Registration for UIF with Department of Labour
- Salary Reporting Packs on monthly, quarterly and annual basis
- Submission of statutory tax returns (EMP201 and EMP 501)
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