Tag Archive for: payroll compliance

Important SARS Update: Employee Tax Numbers Now Mandatory

SARS has issued an important notice regarding the upcoming 2026/02 Employer Filing Season.

From this filing period onward, employee Income Tax Numbers will be strictly enforced — employers will not be able to submit their EMP501 reconciliations without including an Income Tax Number for every employee.

SARS has confirmed that failure to comply may result in administrative penalties.

In previous years, e@syFile allowed submissions with warnings only, but that relaxation has now ended. Employers are urged to ensure all employees have valid Income Tax Numbers well before submission deadlines to avoid disruptions or penalties.

For the month of November 2025, MRBM is offering to apply for employee Tax Numbers at a reduced cost.

If you’d like us to handle this process for your business, please contact your MRBM payroll consultant or call 031 818 9030 and ask for the payroll department. We recommend getting in touch as soon as possible so we can ensure all employees are registered timeously.

Get in touch: info@mrbm.co.za  /  031 818 9030.

Avoid Penalties with Sage Pastel Payroll

Avoid SARS Penalties the Smart Way – with Sage Pastel Payroll Software

Late submissions, missed deadlines, or small errors in payroll can result in unnecessary expenses.

But the good news is, Sage Pastel Payroll allows for easy and efficient processing of your payroll to ensure timeous payments.

Here’s how:

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➡️ Automate calculations
PAYE, UIF, SDL and other deductions are calculated automatically, reducing the risk of human error.

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➡️ Generate accurate reports
Easily create statutory reports (EMP201, EMP501, IRP5/IT3a) to meet SARS requirements.

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➡️ Stay legislation-ready
Sage keeps their products in line with South African legislation so stay up to date with simple updates and legislative releases.

Want help setting this up?

MRBM will support in making sure your payroll is accurate, compliant and stress-free.

Get in touch: info@mrbm.co.za  /  031 818 9030.

Easy Checklist for Payroll and HR Compliance

Tips to avoid penalties and stay compliant.

Payroll and HR compliance involves more than just paying salaries. From contracts and tax submissions to leave policies and employee records — it all adds up.

Use this checklist to ensure you’re meeting your obligations and protecting your business.  Or outsource to MRBM and our experts will handle it for you!

✅ 1. Company & Employee Registration 

  • Ensure employment contracts comply with the BCEA
  • Collect and verify employee ID documents, tax numbers, and bank details
  • Submit IRP5/IT3(a) certificates annually
  • Register foreign workers with the Department of Home Affairs, if applicable

✅ 2. Statutory Deductions & Contributions

  • Calculate PAYE correctly and deduct monthly
  • Submit SDL (1% of total payroll) if annual payroll > R500,000
  • Deduct and contribute UIF (1% employer + 1% employee)
  • Process retirement fund contributions (if part of the package)
  • Include medical aid contributions (if applicable)
  • Correctly apply fringe benefits tax (e.g., company car, housing)

✅ 3. Monthly & Annual SARS Submissions

  • Submit EMP201 returns by the 7th of each month
  • Make SARS payments timeously
  • File EMP501 reconciliations in Feb and Aug
  • Issue IRP5s after annual reconciliation
  • Submit COIDA Return of Earnings (ROE) annually

✅ 4. Record Keeping (BCEA Requirement: keep for 3 years)

  • Employee details, contracts, and payslips
  • Payroll reports, attendance, and leave records
  • Bonus structures and salary adjustments
  • Disciplinary actions and termination documents

✅ 5. Labour Law Compliance

  • Align contracts with BCEA, LRA, and EEA
  • Provide written particulars of employment
  • Implement leave and grievance procedures
  • Meet Employment Equity requirements (if applicable)
  • Appoint Health & Safety reps (20+ employees)
  • Display mandatory labour law posters visibly 

✅ 6. Terminations & Retrenchments

  • Provide UI-19 and separation documents
  • Pay outstanding remuneration correctly
  • Submit final EMP201 and update payroll records
  • Follow fair procedures as per LRA
  • Comply with section 189 for retrenchments

✅ 7. Optional but Recommended

  • Use compliant payroll software, like Sage
  • Conduct regular internal audits
  • Stay informed on updates to BCEA, SARS, UIF & COIDA
  • Get advice from an employer organisation or HR expert

 

Need help with Payroll or HR compliance? Get in touch: info@mrbm.co.za  /  031 818 9030.

If you’d prefer hands-on support, our Payroll Bureau and HR Consulting services will take care of everything for you.

Save 25% on Payroll Setup – April & May Only!

Now’s the perfect time to outsource your payrolls and save. 

Outsourcing your payroll to MRBM Consultants means more time to focus on your business while we handle the admin. For a fixed monthly fee, we’ll manage your payroll obligations—accurately, on time, and fully compliant. It’s a cost-effective, hassle-free solution that offers peace of mind. 

Switch to our Payroll Bureau service by 31 May 2025, and you’ll receive: 

✅ 25% off the setup fee for your company. 

✅ 15% off Workman’s Compensation registration for new companies. 

Don’t miss out – Take advantage of our Bureau offer today!

Offer valid until 31 May 2025. T’s and C’s apply.

info@mrbm.co.za  /  031 818 9030.

Financial Year-End Checklists – Stay Ahead!

With the financial year-end around the corner, staying organised is key.

We’ve put together essential checklists for both accounting and payroll to help you wrap up the year smoothly.

ACCOUNTING YEAR-END CHECKLIST:

✅  Reconcile bank accounts and clear outstanding items

✅  Review and adjust provisions, accruals, and bad debt write-offs

✅  Finalise fixed asset registers and apply depreciation per SARS guidelines

✅  Ensure all VAT 201 submissions and reconciliations are up to date

✅  Reconcile customer and supplier accounts and follow up on outstanding payments

✅  Review customer accounts for any bad debts which require writing off

✅  Prepare for annual financial statements and tax return (IT14) submission

✅  Back up all financial records and reports for audit and compliance

PAYROLL YEAR-END CHECKLIST:

✅  Process final earnings, bonuses, and deductions for the year

✅  Verify employee records, tax numbers (Income Tax Reference Number), and banking details

✅  Review and reconcile leave balances, overtime, and allowances

✅  Back up payroll records and reports for compliance

✅  Ensure all UIF, PAYE, and SDL payments (EMP201s) are up to date

✅  Submit EMP501 reconciliation via eFiling or EasyFile before the SARS deadline

✅  Generate IRP5s / IT3(a)s and distribute to employees

 

If you’re ready to optimise your solutions, we’d love to hear from you.

info@mrbm.co.za  /  031 818 9030.

Reasons to outsource accounting and payroll

As a business owner, managing finances and payroll can be some of the most crucial and challenging aspects of running your organisation.

While many small businesses start by handling their accounting and payroll internally, there often comes a time when outsourcing a professional becomes essential for sustainable growth and financial health.  

Here are some top reasons to consider outsourcing these services for your business:

Complex Tax Requirements

An experienced accountant can navigate evolving tax laws, maximise deductions, and prevent costly errors in tax compliance.

Time Savings

Outsourcing accounting tasks frees up time for core business activities, facilitating business growth and customer service.

Financial Planning and Analysis

Accountants provide insights into cash flow, profitability, and financial trends, aiding informed decision-making and strategic planning.

Compliance and Regulation

Accountants ensure accurate financial statements that meet legal requirements, minimising the risk of penalties or audits.

 

Business Growth Support

Accountants offer guidance on budgeting, forecasting, and financial strategies to support business expansion and secure financing.

 

Payroll Management

Outsourcing your payroll to MRBM streamlines processes, ensuring accurate payments while effectively managing tax withholdings and reporting.

 

Expertise in Accounting Software

Proficient in tools like Sage, accountants optimise software usage for real-time financial insights.

 

Risk Mitigation and Financial Advice

Accountants identify and mitigate financial risks, offering objective advice on investments and cost-saving measures for overall financial health and peace of mind.

Outsourcing your accounting and payroll may significantly enhance your business’s financial management, providing expertise, efficiency, and strategic support tailored to your business’s needs.

At MRBM Consultants, we are committed to supporting your business, whether you choose to leverage our powerful Sage accounting software independently or in collaboration with professional services.

Together, let’s navigate your business’s unique financial journey efficiently and strategically.

Get in touch for more info: info@mrbm.co.za or 031 818 9030.