MONTHLY PAYROLL SUBMISSION (PIT2024 Modernisation Project) – External BRS Review – 14 July 2023

The following points were discussed in the meeting between SARS and the PAGSA on the 14th of July 2023.
Examples received:
• Majority examples relate to corrections to a previous month’s pay slip which is corrected in the current month:
◦ Overpayment of income
◦ Retrospective termination of employment, medical scheme contribution, etc.
• These corrections are processed in the payroll by deducting the recoupment from the current month’s income.
• If the employee did not receive the specific type of income in the current month, a negative value is processed.
• The processing of the correction may also result in a negative PAYE amount.

Corrections – Principles:
• Legislative View
◦ Variable remuneration must be corrected in the month the employee worked to earn that remuneration.
◦ Non-variable remuneration must be corrected in the month the employee was paid, regardless of when the employee worked to earn the remuneration.
◦ Backdated salaries as a result of wage negotiations must be declared in the month the wage negotiations are concluded.
◦ Payment of antedated salaries as a result of a court case must be declared in the month the decision is handed down by the final court.
• Negative PAYE are not allowed.
• Annualisation
◦ Not required to correct months in between.
• SARS must be informed to which month the correction relates.

Conclusion:
• SARS agree we need to find a pragmatic solution for all parties in the interests of the roll-out of a very important and beneficial new era in PAYE administration.