THE NEW EMP201 DECLARATION PROCESS

UNDERSTANDING THE NEW EMP201 DECLARATION PROCESS

Employers will no longer be required to complete both a payment liability and a payment declaration on an EMP201 form. The new

EMP201 is an employer payment declaration that requires employers to indicate the total payment made and give a breakdown of PAYE,

SDL and UIF payment allocations. In the case of NIL declarations, a declaration must be made to SARS reflecting the nil amounts.

These payment allocation amounts will then be recorded as the employer’s provisional liability for each tax type for the period concerned.

Your EMP501 reconciliation at the end of the financial tax year will provide the actual liability.

This means that employers will only make one payment as opposed to three separate payments for PAYE, SDL and UIF. The EMP201 form

will therefore be used for a single period to declare how that payment must be allocated for each tax type.

The Payment Reference Number, a new field on the EMP201 form, links the actual payment and the relevant EMP201 payment declaration.

On request, SARS will issue a pre-populated EMP201 form each time an employer wants to make a payment for PAYE, SDL and/or UIF.

This form will contain the unique Payment Reference Number.

Importantly, employers will also be able to make adjustments on the EMP201 form for a previously submitted declaration. A declaration

for the current period, or a prior period, can now be adjusted by increasing or decreasing a prior declaration for PAYE, SDL and UIF to

reflect the correct amount.