SARS’s New Compliance Rule for the 2026 Employer Filing Season: What Employers Must Know
South African employers need to prepare for an important compliance change coming in the 2026 Employer Filing Season. SARS has announced a stricter rule that will directly affect PAYE reconciliations, and this time there will be no grace period.
From February 2026, PAYE submissions that contain missing or invalid employee tax reference numbers will be rejected outright. For employers and payroll teams, this means preparation is no longer optional — it’s essential.
What Exactly Is Changing?
In previous filing seasons, SARS allowed employers to submit PAYE reconciliations even if some employee Income Tax Reference Numbers were missing. These submissions were accepted with warnings, giving employers time to fix the issues later.
That flexibility ends in 2026.
From February 2026 onwards:
- PAYE reconciliations will not be accepted if required employee tax reference numbers are missing.
- Submissions containing incomplete data will be rejected, not flagged.
- Employers will need to correct errors before filing, not after.
This marks a major shift toward stricter payroll data enforcement by SARS.
Why This Matters for Employers
This change affects businesses of all sizes — especially those with growing teams or less formal payroll processes.
If you’re not prepared:
- Your PAYE reconciliation may be rejected.
- Filing delays could expose your business to administrative penalties.
- Additional pressure will fall on payroll and HR teams during filing season.
More importantly, this rule highlights a broader trend: SARS is prioritising clean, accurate, real-time data.
Who Needs a Tax Reference Number?
Any employee who earns taxable income must have a valid Income Tax Reference Number. If an employee is required to be registered for income tax and that number is missing, your PAYE submission will fail.
This means employers can no longer rely on placeholders, assumptions, or “we’ll fix it later”.
How Employers Should Prepare Now
The best approach is to start early. Here’s a practical checklist to help you get ready for the 2026 filing season:
1. Audit Your Payroll Data
Review all employee records and identify:
- Missing Income Tax Reference Numbers
- Incorrect or invalid numbers
- Inconsistent employee details
Fixing these issues early will save time and stress later.
2. Register Missing Tax Numbers
If employees don’t have tax reference numbers, employers can:
- Register individuals or submit bulk registrations via payroll systems
- Use SARS eFiling services to verify or request numbers
- Assist employees in completing self-registration if required
3. Encourage Employee Responsibility
Employees can also register for tax themselves using:
- SARS eFiling
- WhatsApp or USSD services
- SARS branch appointments
Encouraging employees to take responsibility speeds up compliance.
4. Review Your Payroll Systems
Make sure your payroll software:
- Requires tax reference numbers where applicable
- Validates employee data before submission
- Aligns with SARS reconciliation requirements
Modern payroll systems should help prevent errors — not create them.
What Happens If You Don’t Comply?
Employers who submit incomplete PAYE reconciliations after February 2026 can expect:
- Rejected submissions
- Filing delays
- Increased risk of penalties
- Added administrative workload
In short, waiting until filing season is too late.
Final Thoughts
SARS’s 2026 compliance update is clear: accurate payroll data is no longer negotiable. Employers who act early will experience smoother filing seasons, fewer disruptions, and lower compliance risk.
If you haven’t already, now is the time to:
- Review employee tax data
- Strengthen payroll processes
- Ensure your systems are ready for stricter enforcement
Preparation today will save you from compliance headaches tomorrow.