[South Africa] SARS prioritises PAYE compliance

The South African Revenue Service (SARS) intensified its focus on PAYE compliance, marking it as a priority in the 2023/24 Annual Report, BusinessTech reports.

The move has reiterated SARS’s commitment to stricter oversight and greater accountability, particularly regarding employer tax responsibilities.

Tax Consulting SA told BusinessTech that SARS has implemented a more rigorous auditing strategy to ensure that employers accurately withhold and remit PAYE.

Employers are reportedly being urged to carefully assess their PAYE practices to confirm compliance with tax regulations.

Under South Africa’s tax system, employers are central to PAYE collections, deducting tax directly from employees’ earnings on behalf of SARS.

SARS’s new approach emphasises the importance of ensuring that such collections are conducted correctly and consistently. Non-compliance - whether intentional or accidental - will now be more likely to draw scrutiny, as SARS is committed to tightening its PAYE collection processes.

BusinessTech suggests that employers who are uncertain about the adequacy of their PAYE practices should proactively address any gaps to prevent future complications.

SARS has expanded the scope of its audits to examine the PAYE compliance of both individuals and businesses through its Specialised Audit division.

This expanded audit framework reportedly includes other employment-related tax considerations, such as the Employment Tax Incentive (ETI).

The focus of PAYE audits goes a lot further than a cursory payroll review. SARS looks comprehensively at all components of PAYE withholding, including fringe benefits, the ETI, and any additional employee remuneration.

Proper reporting of fringe benefits such as company cars or housing allowances is now of particular importance since inaccuracies in these areas could result in further scrutiny and penalties.

In addition to stricter audits, SARS has reportedly introduced a range of measures to help employers streamline compliance while maintaining closer oversight.

Its recent updates include refined processes for tax directives, the bi-annual PAYE submissions (EMP501), and expanded eFiling capabilities for submitting third-party data. The changes are intended to make compliance more straightforward for employers while allowing SARS greater visibility into reported PAYE data.

Source: BusinessTech

The South African Revenue Service (SARS) intensified its focus on PAYE compliance, marking it as a priority in the 2023/24 Annual Report, BusinessTech reports.

The move has reiterated SARS’s commitment to stricter oversight and greater accountability, particularly regarding employer tax responsibilities.

Tax Consulting SA told BusinessTech that SARS has implemented a more rigorous auditing strategy to ensure that employers accurately withhold and remit PAYE.

Employers are reportedly being urged to carefully assess their PAYE practices to confirm compliance with tax regulations.

Under South Africa’s tax system, employers are central to PAYE collections, deducting tax directly from employees’ earnings on behalf of SARS.

SARS’s new approach emphasises the importance of ensuring that such collections are conducted correctly and consistently. Non-compliance - whether intentional or accidental - will now be more likely to draw scrutiny, as SARS is committed to tightening its PAYE collection processes.

BusinessTech suggests that employers who are uncertain about the adequacy of their PAYE practices should proactively address any gaps to prevent future complications.

SARS has expanded the scope of its audits to examine the PAYE compliance of both individuals and businesses through its Specialised Audit division.

This expanded audit framework reportedly includes other employment-related tax considerations, such as the Employment Tax Incentive (ETI).

The focus of PAYE audits goes a lot further than a cursory payroll review. SARS looks comprehensively at all components of PAYE withholding, including fringe benefits, the ETI, and any additional employee remuneration.

Proper reporting of fringe benefits such as company cars or housing allowances is now of particular importance since inaccuracies in these areas could result in further scrutiny and penalties.

In addition to stricter audits, SARS has reportedly introduced a range of measures to help employers streamline compliance while maintaining closer oversight.

Its recent updates include refined processes for tax directives, the bi-annual PAYE submissions (EMP501), and expanded eFiling capabilities for submitting third-party data. The changes are intended to make compliance more straightforward for employers while allowing SARS greater visibility into reported PAYE data.

Source: BusinessTech