How to Capture PAYE Submissions on Pastel Partner

By Trev Gami •  Updated: 01/23/24 •  5 min read

When you operate a business, you must deduct a tax known as Pay-As-You-Earn (PAYE) from your employees and submit it to the South African Revenue Service (SARS). However, the process of capturing PAYE submissions can be time-consuming if performed manually. Fortunately, you can make this process easy by using Pastel Partner software designed to handle payroll issues more efficiently. With this program, you can accurately process your payroll and manage your tax affairs efficiently. Read on to learn how to capture PAYE submissions on Pastel Partner. 

How to Capture PAYE Submissions on Pastel Partner

First and foremost, you must obtain the Pastel Partner software, which comes as a single-user version for small businesses or start-ups. The solution is scalable for medium companies. When you implement the payroll software in your operations, you will enjoy unlimited benefits regarding your tax affairs. 

Before you start capturing PAYE submissions on Pastel Partner, you need to perform the following preparation tasks first.   

When you have your details in order, you can start processing your employee’s salaries. You can do this by following the steps below.  

  1. Set the processing date.
  2. Reset payments (optional)
  3. Enter your employees’ payment details
  4. Assess the employees
  5. Run pre-update reports
  6. Update the payroll for that particular period
  7. Post the nominal link
  8. Create payment files
  9. Print post-update reports
  10. Process any leavers
  11. Submit your payroll to SARS

When you complete these steps, your PAYE submission is complete.

How Do You Capture a Tax Directive in Pastel Payroll?

SARS requires fund administrators and employers to obtain something called a tax directive if they cannot use tax tables for lump sum payments or specific forms of remuneration. The information captured on the tax directive form is used to determine the tax that should be levied on lump sum payments. 

To capture tax directives in Pastel Payroll software, you must navigate to the Tax tab, and then Employees Edit, Employee Masterfile, and enter the appropriate Directive Number. When you have finished, save the master file. The second step is to navigate to the employee’s Process Payslip. Add the code 5780 on the income Tab and then enter the amount that should be paid to the employee. The amount of tax to be deducted will be calculated. 

How Do You Do Submissions on Easyfile?

SARS has free software linked to eFiling known as e@syfilTM, which is designed for taxpayers who are payroll administrators or employers to manage their tax affairs easily. You need to download the latest e@syfilTM version and install it on your computer. 

There are two software applications available on e@syfilTM, and the first one is e@syfilTM Employer. This option allows employers to perform the following tasks: 

The second e@syfilTM Dividends tax option allows Regulated Intermediaries and Dividends Declarants to complete declarations and submit dividend transaction data offline. When ready to send the information to SARS via eFiling, you need to go online. It is vital to download e@syfilTM Dividends Tax first and install it on your computer. The good thing about this solution is that you can use it offline.

What Is the Difference Between EMP201 and EMP501?

Employers who deduct payroll taxes, including Pay-As-You-Earn (PAYE), Unemployment Insurance Contributions (UIC), and Skills Development Levy (SDL) are required to submit EMP201 tax returns with employee details to SARS every month. Employers who are eligible to get credits such as Employment Tax Incentive (ETI) must also include the details on the EMP201. 

On the other hand, EMP501 includes all the documents captured in payroll processing, and it is submitted twice a year, unlike EMP201. From March to August, there is interim reconciliation, and the final reconciliation is carried out between September and February. IRP5 certificates are only issued in the final reconciliation. 

The EMP501 functions as a reconciliation conducted by the employer and includes details about the monthly EMP201 returns. In other words, it is a report showing your employees’ earnings. This information must be submitted to SARS. If you are an employer, you need to reconcile tax liabilities like PAYE, UIF, and SDL, which are declared every month on EMP201. The employer is responsible for deducting, declaring, and paying the correct amounts of taxes deducted from the employee’s remuneration every month to SARS.

Therefore, the main difference between EMP201 and EMP501 is that EMP201 is a monthly declaration of payroll taxes to SARS by the employer, whereas EMP501 is a reconciliation or tax validation based on monthly reconciliations.  

When Must EMP501 Be Submitted?

The EMP501 must be submitted twice per financial year. The first submission must take place during the interim period comprising six months from 1 March to 31 August and is due 31 October. The annual period comprises the full tax year period from 1 March to 28 or 29 February of the following year, and it will be due on 31 May. 

All employers who deduct must deduct PAYE and other taxes such as UIC and SDL must file EMP201 forms and pay the money to SARS every month. To make the often time-consuming process of capturing PAYE submissions easy, employees can consider using special software called Pastel Partner. This solution is easy to use, and it can handle all your tax affairs efficiently. All you need to do is to ensure that you capture the correct details on both EMP201 and EMP501 forms to avoid errors. Remember to avoid late submission of each form since this can lead to penalties.

Keep Reading

How Long Does It Take To Process A PAYE Registration

How Long Does It Take To Process A PAYE Registration

Searche.co.za provides detailed information on how to navigate the complexities of Pay As You Earn registration in South Africa. 

How to Register An Employee For PAYE

How to Register An Employee For PAYE

While we talk about taxes, we will be taking you through how one can register as an employee for PAYE.

How to Create Payment Instruction to Authorize PAYE eFiling

How to Create Payment Instruction to Authorize PAYE eFiling

How to Create Payment Instruction to Authorize PAYE eFiling. This post explains different things you should know about authorizing PAYE eFiling. 

Can SARS Refund Overpayment For PAYE?

Can SARS Refund Overpayment For PAYE?

Can SARS Refund Overpayment For PAYE? This article explains everything you want to know about tax refunds.      

Do You Pay PAYE On A Personal Loan?

Do You Pay PAYE On A Personal Loan?

So, let’s put on our beekeeper suits, grab our smokers, and dive into the buzzing world of PAYE.

Can PAYE Be Deducted From Trustees?

Can PAYE Be Deducted From Trustees?

We’ll shed light on the responsibilities, registration processes, and all things tax-related when it comes to trustees and PAYE in South Africa

How to Apply For A PAYE Refund

How to Apply For A PAYE Refund

By consistently keeping track of tax codes and staying informed about eligible deductions, you increase your likelihood of discovering and obtaining PAYE tax refunds

How to Claim Back Your SARS PAYE As A Student

How to Claim Back Your SARS PAYE As A Student

How to Claim Back Your SARS PAYE As A Student. This guide explains how to reclaim your SARS PAYE as a student. 

What Documents Are Needed to Apply For A PAYE Number?

What Documents Are Needed to Apply For A PAYE Number?

Below is the comprehensive list of documents needed to apply for a PAYE number in South Africa. 

How to Allocate PAYE Payment On eFiling

How to Allocate PAYE Payment On eFiling

This piece will give you an insight into how to allocate PAYE payment on eFiling and subsequently address other related questions. 

How to Use Unallocated Payments to Allocate to PAYE

How to Use Unallocated Payments to Allocate to PAYE

In this informative guide, we will explore the details of using unallocated payments to make your PAYE process more efficient.

How Do Employees Benefit From PAYE Deductions?

How Do Employees Benefit From PAYE Deductions?

How Do Employees Benefit From PAYE Deductions? Today we look at these benefits in greater depth.

What Amount of Your Salary Is PAYE?

What Amount of Your Salary Is PAYE?

This article explains some basic concepts of PAYE as they apply to employees in various sectors. 

Can I Register For uFiling If I am Already Registered For PAYE?

Can I Register For uFiling If I am Already Registered For PAYE?

Can I register for uFiling if registered for PAYE? This article explains everything you want to know about UIF and PAYE.   

Which Incomes Are Taxable Under PAYE And VAT

Which Incomes Are Taxable Under PAYE And VAT

This post will delve into the details to better understand which wages are subject to taxation under PAYE and VAT.