If you’re a South African business owner or employer, chances are you’ve heard of EMP201 – but maybe you’re not entirely sure what it is or how it works. You’re not alone! Many small business owners struggle to keep up with the monthly payroll compliance requirements from SARS (South African Revenue Service).
In this blog, we’ll break down:
- What EMP201 is
- Why it matters
- How to submit it
- And how using a payroll software like Panda by PSS Group can make it easier than ever
💼 What is EMP201?
The EMP201 is a monthly employer declaration form that you, as an employer, must submit to SARS. It summarizes the total Pay-As-You-Earn (PAYE), Unemployment Insurance Fund (UIF), Skills Development Levy (SDL), and Employment Tax Incentive (ETI) amounts you’ve deducted from your employees’ salaries — and what you owe SARS.
Think of it as your monthly payroll tax return.
🧾 What Must Be Declared on the EMP201?
Your EMP201 form includes:
- PAYE (Pay-As-You-Earn): Tax withheld from employee salaries
- UIF: A contribution for unemployment benefits
- SDL: A levy to support employee skills development
- ETI: If you qualify, you can claim a reduction through this incentive
All of these values must be declared by the 7th of every month, covering the previous month’s payroll.
❗Why is EMP201 So Important?
Submitting your EMP201 accurately and on time is crucial because:
- It’s a legal requirement from SARS
- Failure to submit can lead to penalties, interest, and compliance audits
- It impacts your ability to generate an IRP5 certificate for employees at the end of the year
- Late or incorrect submissions can hurt your business credibility
🧠 Common Mistakes Employers Make with EMP201
- Forgetting to file by the 7th of each month
- Submitting incorrect figures due to manual calculations
- Not accounting for ETI claims
- Misclassifying non-taxable benefits
These mistakes often happen because employers don’t have a system in place to manage payroll efficiently.
✅ How to Submit an EMP201
You can submit EMP201 in three ways:
- SARS eFiling – online, but requires manual input and setup
- SARS e@syFile Employer – SARS software for employers
- Using Payroll Software – automated, faster, and less prone to human error
🐼 Why Panda Payroll Software Makes EMP201 Easy
Panda by PSS-Group.co.za is an affordable, user-friendly South African payroll software built specifically for small businesses.
With Panda, you can:
- ✅ Automatically calculate PAYE, UIF, SDL, and ETI
- ✅ Generate EMP201 reports in one click
- ✅ Get reminders before the 7th deadline
- ✅ Export directly to SARS eFiling
- ✅ Avoid costly mistakes from manual entry
Whether you manage 2 or 200 employees, Panda saves you time, stress, and money — so you can focus on growing your business, not spreadsheets.
📅 Never Miss a Deadline Again
Panda even gives you monthly payroll checklists and email reminders so that EMP201 submissions become a breeze, not a burden.
🔁 Recap: EMP201 in Simple Terms
| Question | Answer |
|---|---|
| What is EMP201? | A monthly payroll tax declaration to SARS |
| When is it due? | By the 7th of every month |
| What does it include? | PAYE, UIF, SDL, and ETI |
| What happens if I skip it? | Penalties, interest, SARS flags |
| How can I make it easier? | Use Panda payroll software for automation |
💬 Ready to Simplify Your Payroll?
Visit PSS-Group.co.za and try Panda – your reliable partner for stress-free EMP201 compliance and smart payroll management.