2025/2026 Employer Annual Declaration (EMP501) β Submission Period
The submission period for the Employer Annual Declaration (EMP501) is still open. To ensure your organisation remains compliant and avoids late-filing penalties, please submit your reconciliation by the closing date of 31 May 2026.
Two ways we can help:
- Book an Expert β a consultant will guide you through the process step by step.
- DIY Submission Guide β step-by-step instructions for completing your Annual Submission independently.
Extended support hours in May 2026:
- Friday, 29 May β until 17:00
- Saturday, 30 May β 08:00 to 12:00
Income Tax Reference Numbers β now compulsory
From the 2026 filing season, SARS strictly enforces mandatory employee Income Tax Reference Number (TRN) validation. EMP501 submissions without valid TRNs for all applicable employees will be rejected.
Two reports in Deel Local Payroll can help identify employees without a tax reference number:
- Dynamic Employee Details report
- Tax Year End Non-Financial report
COID Earnings Threshold Increase
The Minister of Employment and Labour published Government Gazette 54577, increasing the Compensation for Occupational Injuries and Diseases (COID) earnings threshold.
Effective 1 March 2026, the COID earnings threshold increases from R633 168 to R668 000 per annum (limit for 2026/2027).
Please ensure your payroll system reflects the updated threshold to remain compliant with COID contributions for the new period. For further assistance, contact support@payspace.com.
COID Submission Period β ROE Declarations
The window for submitting your Return of Earnings (ROE) declarations is now open and runs until 30 June 2026.
To assist with a seamless filing experience, we recommend submitting your documentation well ahead of the closing date, as submission volumes tend to increase significantly toward the end of June.
Increase in the BCEA Earnings Threshold
The Minister of Employment and Labour published Government Gazette 54544, increasing the Basic Conditions of Employment Act (BCEA) earnings threshold.
For more information on the updated threshold amounts and their impact on your payroll, refer to the official Government Gazette or contact support@payspace.com.
Verify run setups before the EMP501 deadline
As the submission deadline approaches, verify that all existing run setups are correct. Payroll records must be accurately allocated to the correct tax year for compliant tax reporting.
Pre-submission checklist:
- Finalise your February 2026 pay run and close all runs for your tax period.
- Verify company and employee information (names, addresses, ID/Passport numbers, TRNs, banking details).
- Reconcile the EMP501 and EMP201 reports.
- Identify employee records with discrepancies and process corrections.
- Generate the Test CSV File from the system before final submission.
Changes to existing run setups must be logged with support@payspace.com.
Generating your CSV file for e@syFile submission
The Deel Local Payroll .csv export is fully compatible with SARS e@syFile Employer. To generate your tax file:
- Navigate to the Tax Certificate Run screen.
- Use the TEST tax file option to validate payslip data before closing all runs.
- Once satisfied, generate the final CSV and import into the latest version of e@syFile Employer.
Important: CSV files cannot be uploaded to e@syFile until the latest software version has been downloaded from the SARS website. Always ensure you are using the most current release before importing.
Your SARS tax certificate numbers just got smarter
From the 2026 year of assessment, Deel Local Payroll generates employee tax certificate numbers using a new reindexing system. Each employee now receives a unique certificate number per pay frequency, starting at β00000000001β β ensuring no two certificates can ever be duplicated.
This change improves submission accuracy and eliminates the risk of duplicate certificate errors during the SARS ETV (Employment Taxes Validation) process. For more information, refer to the Whatβs New section in the system or contact support@payspace.com.
What is the difference between an IRP5 and an IT3(a) certificate?
An IRP5 is a tax certificate issued to employees from whom PAYE (Pay As You Earn) has been deducted.
An IT3(a) is issued where no PAYE was deducted β typically for employees who earn below the tax threshold.
Both certificate types must be included in the EMP501 reconciliation and submitted to SARS via e@syFile Employer.
What is the COID earnings threshold and who does it affect?
The Compensation for Occupational Injuries and Diseases (COID) earnings threshold is the maximum annual earnings amount used to calculate employer contributions to the Compensation Fund.
From 1 March 2026, the threshold increased from R633 168 to R668 000 per annum.
What is Employment Taxes Validation (ETV) and how does it affect our employees?
Employment Taxes Validation (ETV) is a SARS process in which SARS independently recalculates the tax values on the IRP5/IT3(a) certificates submitted by employers via e@syFile.
To prevent the ETV file from failing, ensure all financials are accurately calculated and recorded.
Have you met the new Ask Pacey?
Pacey has received a significant upgrade. Ask Pacey now features an AI-powered Knowledge Base Search, enabling you to access instant, accurate answers directly within your DLP application β without the need to manually browse through help articles.
To get started, click the Ask Pacey icon located in the top right-hand corner of your application.
New Customer Satisfaction (CSAT) Rating
We have recently transitioned to a new ticketing system. As part of this change, we have moved away from the Net Promoter Score (NPS) and now measure customer feedback through the Customer Satisfaction (CSAT) Rating β a more direct reflection of each support experience.
Rating guidelines β based on your consultantβs performance:
- Responsiveness β Time taken to address and resolve the issue
- Attention to detail β Thoroughness and accuracy in handling the request
- Quality of feedback β Clarity and usefulness of communication provided
- Professionalism β Courtesy, understanding, and care demonstrated throughout
Rating scale: 1β3 meets basic expectations Β· 4β5 exceeds expectations. Please rate within 5 days of your ticket being solved.
2025/2026 Employer Annual Declaration (EMP501) β submission now open
The submission period for the Employer Annual Declaration (EMP501) is officially open. To remain compliant and avoid late-filing penalties, submit your reconciliation by 31 May 2026.
Extended support hours:
- Friday, 29 May β until 17:00
- Saturday, 30 May β 08:00 to 12:00
For step-by-step guidance, see the DIY Annual Submission guide β or book a consultant β.
Knowledge Base FAQs for a smooth submission
The Knowledge Base has dedicated articles for resolving e@syFile errors, exporting reports, and successfully importing CSV files into e@syFile.
To access the FAQs from the DLP application: click your name in the top right β Knowledge Base.
COID submission period now open
The window for submitting ROE declarations is open and runs until 30 June 2026. Submit well ahead of the closing date β volumes increase significantly toward the end of June.
FAQs to support your submission:
Enhance your skills with on-demand e-learning
Explore the full catalogue of on-demand e-learning courses β designed for self-paced learning. Whether you're mastering HR essentials or unlocking advanced system features, the modules provide the expertise needed to maximise efficiency.
Browse e-learning courses β
Enable system-wide lockout
The Lockout feature lets companies temporarily suspend system access so payroll can be finalised without users entering data that might disrupt the reconciliation process.
Navigate: Config β Basic Settings β Company Settings β Basic Company Information β General Details.
Select the Deny access when lock out is enabled option on the relevant security roles to block all users linked to them.
Navigate: Config β Security β Security β Security Roles β Details β Role information.
Custom Report Writer
Exclusively available on the Master Edition, the Custom Report Writer lets users build tailored reports through a drag-and-drop interface. Powered by DevExpress, it enables seamless extraction and organisation of system data β keeping reporting aligned with your organisation's specific requirements.
Office closures β Q2 2026
Please note that the support team will be unavailable on the following public holidays:
- Friday, 3 April
- Monday, 6 April (Easter Monday)
- Monday, 27 April (Freedom Day observed)
For urgent queries, submit a ticket at support@payspace.com and the team will respond on the next business day.
Payroll amendments effective 1 March 2026
For a detailed summary of the 2026 National Budget key changes, refer to these resources:
2025/2026 Annual Employer Reconciliation β EMP501 submission dates
According to SARS, the 2025/2026 Annual Employer Reconciliation Declaration (EMP501) period opens 1 April 2026 and closes 31 May 2026.
Two ways the support team can help:
- Book an Expert β a consultant will guide you through the process. Book here β
- Self-service guide β step-by-step instructions for completing your Annual Submission independently. View submission guide β
Extended support hours in May 2026:
- Friday, 29 May β until 17:00
- Saturday, 30 May β 08:00 to 12:00
Income Tax Reference Numbers now compulsory
SARS has urged employers to prepare for the 2026 Employer Filing Season. From 2026, PAYE reconciliations will only be accepted if all employees required to register under section 67 of the Income Tax Act have valid Income Tax Reference Numbers.
Submissions with missing or invalid numbers will be rejected. Non-compliance may lead to administrative penalties.
View the SARS notice β Β Β·Β View FAQs β
Did you know? Two reports can identify employees without tax reference numbers: the Dynamic Employee Details report, and the Tax Year End Non-Financial report.
Bonus Tax Spread
Employees may choose to spread the tax on a guaranteed bonus over the tax year using the Automatic Bonus/Tax Spread component. This is ideally processed in March and results in a monthly portion of bonus tax being deducted rather than the full amount in the bonus month.
Click here for more information β
Run setups for the new tax year
Verify existing run setups as the tax year end submission approaches. Payroll records must be accurately allocated to the correct tax year for compliant tax reporting.
Changes to existing run setups must be logged with support@payspace.com.
NextGen screen conversions this month
The following screens have been converted to NextGen in the March 2026 release:
- Leave Averaging Setup
- Leave Scheme Parameters
- Leave Bucket Mapping
- Payroll Components
- General Ledger Parameters
- Other Dropdowns
See the Product Newsletter for full conversion details.
Webhooks
Webhooks enable the system to automatically send notifications whenever an update or change occurs on a screen. Notifications are delivered in JSON format with detailed information about what was modified.
Click here for more information β
2026 Budget Speech and public submission window
South Africa's National Treasury invited public submissions for the 2026 Budget. The Minister of Finance delivered the National Budget Speech on 25 February 2026.
View the official publication: 2026 Budget Tips β
Income Tax Reference Numbers β compulsory from February 2026
From February 2026, PAYE reconciliations will only be accepted if all employees required to register under section 67 of the Income Tax Act have valid Income Tax Reference Numbers. Submissions with missing or invalid numbers will be rejected.
View the SARS notice β
National minimum wage increases effective 1 March 2026
Government Gazette 54075 (3 February 2026) under the National Minimum Wage Act increases the national minimum wage and related allowances effective 1 March 2026.
Steps to update the Minimum Wage in the system β
New enhancement β TEST tax file generation
The Tax file has been enhanced to allow employers to generate a TEST tax file from the Tax Certificate Run screen without closing all payroll runs up to August or February. The TEST file includes payslip data available at the time of export, enabling earlier validation.
See the "What's New" section in the system for more information.
Annual Reconciliation Declaration (EMP501) β preparation checklist
- Finalise your February 2026 pay run and close all runs for your tax period.
- Verify company and employee information.
- Reconcile the EMP501 and EMP201 reports.
- Identify employee records with discrepancies and process corrections.
- Generate the Test CSV File from the system.
Important: CSV files cannot be uploaded until the latest version of the e@syFile software has been released.
Knowledge base resources include articles on e@syFile errors, exporting reports, and how to import CSV files. Navigate: your initials β How Can We Help? β PaySpace Wisdom β Knowledge Base β FAQs β Annual Submission.
Employee logbooks β travel allowance
Employees receiving a travel allowance can claim a deduction on their annual income tax return for business use of a private motor vehicle. Remind employees to:
- Record the motor vehicle's closing odometer reading on the last day of February.
- Calculate total kilometres for the full year.
- Calculate total business kilometres for the year.
Consolidated tax file for multiple frequencies
Companies with multiple frequencies can generate a consolidated tax file to import into e@syFileβ’ Employer β rather than extracting individual CSV files per frequency.
Click here for more information β
Time and Attendance
Time and Attendance (T&A) systems record employee working hours and absences, and integrate with the payroll system by exporting approved data for upload β ensuring accurate payroll processing with minimal manual intervention.
Click here for more information β
Welcome back
Welcome back to all our valued customers. We wish you a Happy New Year filled with joy, success, and reliable support throughout the year ahead.
Medical Aid rates β 2026
The 2026 Medical Aid tables have been successfully updated. If any rates haven't updated yet, contact support@payspace.com for assistance.
Bulk actions for Organisation Hierarchy Units
Simplify Organisation Hierarchy management with Bulk Actions. Download a prepopulated template to efficiently:
- Add new Organisation Unit records
- Edit existing Organisation Unit records
- Move Organisation Units to a different parent within the same level
Navigate: Bulk Actions β Screen Type: Company β Action Type: Organisation Hierarchy Units
General Ledger Journal capability
The system can generate General Ledger Journal files that summarise payroll data in a structured format for direct upload into financial or accounting software β allowing payroll costs to flow into your organisation's general ledger without manual reconciliation.
Customisable GL scripts align with your specific accounting layout, chart of accounts, debit/credit formatting, cost centres, and currency rules.
Contact the Professional Services team for scoping or a quotation.
Employment Equity reporting deadline
Employment Equity Reporting for 2025 was due by Thursday, 15 January 2026.
View the Employment Equity Guide β
Understanding a valid SARS Income Tax Reference Number
An employee's Income Tax Reference Number is the unique number issued by SARS. Ensure all employee records contain valid, registered TRNs ahead of the 2026 filing season.
Information on TRN validation β
Income Tax Reference Numbers β compulsory from February 2026
From the 2026 filing season, any reconciliations submitted without valid Income Tax Reference Numbers will be rejected, and failure to comply may lead to administrative penalties. The concession that allowed missing TRNs with only a warning will no longer apply.
Boost your payroll reporting skills β Lunch & Learn
A one-hour Lunch & Learn session was held on 5 February 2026 focused on payroll reporting. Topics covered:
- Scheduling and managing recurring reports
- Quick access to favourite and most-used reports
- Time-saving tips for fast payroll validation
Watch for upcoming Lunch & Learn sessions via your email newsletter.
Official rate of interest change β December 2025
SARS updated the official rate of interest used to calculate the taxable fringe benefit on low-interest or interest-free loans granted to employees. Apply the new rate from the effective date.
Read the full update β
New tax framework for tax year 2026
The DRC has introduced a new tax framework taking effect for the 2026 tax year. Review the framework changes ahead of January payroll runs to ensure correct PAYE calculations.
Read the full update β
Rent Relief Allowance
Nigeria introduced a Rent Relief Allowance as part of the 2026 tax reform package. Employers should familiarise themselves with the qualifying criteria and how the relief is applied to taxable income.
Read the full update β
New FSSP contributions
Niger has introduced new Fonds de Soutien Γ la SΓ©curitΓ© Publique (FSSP) contributions affecting payroll calculations. Review the contribution rates and apply them in your January 2026 runs.
Read the full update β
ENPF maximum wage limit increase β 2026
Eswatini National Provident Fund (ENPF) maximum wage limit has been increased effective 2026. Update your payroll setup to reflect the new ceiling.
Read the full update β
Fair Share Contribution and company car benefit β October 2025
Mauritius introduced the Fair Share Contribution and updated company car benefit rules. Review the calculation changes and apply them to payroll runs from the effective date.
Read the full update β
Tax reform 2026 updates
Nigeria's 2026 tax reform brings significant changes to personal income tax bands, reliefs, and employer obligations. Review the updates ahead of the new tax year to ensure compliance.
Read the full update β
October 2025
No legislative bulletins were issued for October 2025. See the November 2025 entry for the Mauritius Fair Share Contribution update, which took effect in October.
For ad-hoc compliance queries, contact support@payspace.com.
ONEM percentage increase β August 2025
The Office National de l'Emploi (ONEM) employer contribution rate was increased. Update your payroll system to reflect the new contribution percentage for DRC-based employees.
Read the full update β
Tax table updates 2025/2026
Mauritius released updated tax tables for the 2025/2026 tax year. Apply the new bands and rates to payroll runs from the effective date to ensure accurate PAYE deductions.
Read the full update β
PAYE calculation changes β August 2025
Eswatini introduced changes to the PAYE calculation methodology. Review the revised calculation approach and update payroll settings accordingly.
Read the full update β
Tax table updates β July 2025
Ethiopia released updated tax tables affecting employee income tax calculations. Apply the new tables in your July 2025 payroll runs to remain compliant.
Read the full update β
June 2025
No country-specific legislative bulletins were issued for June 2025. The South Africa SARS PAYE BRS changes for 2025/2026 (effective from the new tax year) remained in effect β see the May 2025 entry for details.
For ad-hoc compliance queries, contact support@payspace.com.
SARS PAYE BRS changes for the 2025/2026 tax year
SARS published the updated PAYE Business Requirements Specification (BRS) for the 2025/2026 tax year. Review the full list of changes β including new codes, validation rules, and submission requirements β before generating tax certificates.
Read the full update β
Tax Tables 2025/2026
Lesotho released updated tax tables for the 2025/2026 tax year. Apply the new bands and rates from the start of the new tax year to ensure accurate PAYE deductions.
Read the full update β
OID Earnings Threshold update β March 2025
The Occupational Injuries and Diseases (OID) earnings threshold has been updated effective March 2025. Update payroll setup so the correct ceiling is applied for COIDA reporting.
Read the full update β
Annual Amendments 2025/2026
Following the Chancellor's Autumn Budget 2024, several legislative changes apply for the 2025/2026 tax year β including Scotland income tax bands, student loan thresholds, van and car fuel benefit rates, and statutory pay changes. Effective 6 April 2025 unless otherwise stated.
Read the full update β
Employment Tax Incentive update β April 2025
SARS published updated ETI formulas and qualifying criteria effective April 2025. Ensure your ETI calculation logic reflects the revised values for the 2025/2026 tax year.
Read the full update β
Statutory Neonatal Care Leave and Pay β April 2025
From April 2025, eligible UK employees gain a new statutory right to Neonatal Care Leave and Pay. Review the eligibility rules and pay rates and update your leave policies and payroll configurations.
Read the full update β
Payroll Amendments β March 2025
The annual round of South African payroll amendments effective from 1 March 2025 covers tax rebates, primary/secondary/tertiary thresholds, medical aid tax credits, subsistence allowances, and travel reimbursement rates. Review and apply before the first March payroll run.
Read the full update β
Official Rate of Interest increase β effective 6 April 2025
HMRC announced an increase to the Official Rate of Interest used to calculate the taxable benefit on employer-provided loans. Apply the new rate from 6 April 2025.
Read the full update β
Official Rate of Interest change β February 2025
SARS updated the official rate of interest used for calculating the taxable fringe benefit on low-interest or interest-free loans to employees. Apply the new rate from the effective date.
Read the full update β
How employee benefits are taxed in Brazil β a quick guide
A practical overview of how Brazil's tax authority treats common employee benefits, including which benefits are taxable, partially taxable, or exempt β useful for new Brazil-based payroll setups.
Read the full guide β
NSSF Rates and Meals Fringe Benefit updates β February 2025
Kenya updated NSSF contribution rates and revised the taxable fringe benefit value for employer-provided meals. Apply both changes in February 2025 payroll runs.
Read the full update β
Maximum Insurable Earnings for 2025
Ghana published the updated Maximum Insurable Earnings ceiling used for SSNIT contributions in 2025. Update payroll setup to reflect the new ceiling from the effective date.
Read the full update β
Big changes in UK HR and Payroll for 2025 β here's what you need to know
A round-up of the major UK HR and payroll changes for 2025: National Insurance contributions, statutory pay rates, employment rights changes, and what employers must do to prepare.
Read the full guide β