Payroll compliance starts before payday. Employee records, approved hours, leave, deductions and taxable benefits must be accurate before payslips, bank files and SARS liabilities are produced.
Monthly employer checklist
Maintain signed employment terms, identity and tax information, banking details and documented changes to remuneration.
Approve hours, overtime, leave, commissions, allowances, reimbursements and lawful deductions before the payroll cut-off.
Review PAYE, UIF, SDL and taxable benefits; issue payslips and reconcile the payroll bank file to the approved payroll.
Post wages and employer costs to the accounts, reconcile control accounts and preserve reports for EMP201 and EMP501 filings.
Annual and event-driven controls
Update payroll for salary changes, new employees and terminations when they occur. Reconcile certificates during EMP501 season and review COIDA, UIF and leave records on the deadlines applicable to the employer.
What should reconcile
The approved payroll register to payslips and the employee bank-payment file.
PAYE, UIF, SDL and ETI values to the EMP201 declaration and SARS payment reference.
Gross pay, deductions, employer contributions and net pay to the accounting ledger and control accounts.
EMP201 declarations and payments to IRP5/IT3(a) certificate values during the EMP501 reconciliation.
Employee changes that need evidence
Keep approved records for appointments, banking changes, increases, bonuses, allowances, deductions, garnishee orders, leave, terminations and final-pay calculations. A payroll system records the result; it does not replace the employment and approval documents supporting that result.
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