Statutory Reporting
Tax & Statutory Deductions Compliance
Accuracy and timeliness of PAYE, UIF, SDL and pension deductions and remittances.
Why statutory deductions are a frontline compliance risk
PAYE, UIF, SDL and pension deductions are trust monies the institution withholds on behalf of SARS and retirement funds, and late or inaccurate remittance attracts penalties, interest and personal liability for the accounting officer under the PFMA and MFMA. Because these flows recur monthly and touch every employee, errors compound quickly and surface as audit findings in the AGSA process. AuditPro Core gives the finance and payroll function continuous visibility over deduction accuracy and remittance timeliness so issues are caught before the EMP201 deadline rather than after.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Remittances on time
97%
▲ 2 pts
Late remittances
3
Reconciliation variance
R 84k
Penalties incurred
R 22k
Variance by deduction type (R'000)
Remittance compliance by month
| Month | Due (R) | Remitted (R) | Status |
|---|---|---|---|
| January | 4120000 | 4120000 | On time |
| February | 4080000 | 4040000 | Variance |
| March | 4210000 | 4210000 | On time |
| April | 4150000 | 4150000 | Late |
| May | 4190000 | 4190000 | On time |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Withheld monies are not the institution's funds
Amounts deducted from employee earnings for tax and statutory contributions are held in trust and must be paid over by the seventh of the following month. Treating them as available cash, even temporarily, is a breach that the AGSA tests directly.
Reconciliation underpins the EMP501
The bi-annual employer reconciliation requires that monthly EMP201 declarations agree to actual payments and to the payroll. Discrepancies between deducted, declared and remitted amounts are the most common cause of SARS assessments.
Timeliness carries its own penalty regime
SARS imposes a fixed percentage penalty plus interest on late PAYE, independent of whether the amount was ultimately correct. Timeliness is therefore tracked as a separate compliance dimension from accuracy.
How AuditPro Core Bridges the Gap
- Three-way reconciliation: AuditPro Core matches payroll deductions to EMP201 declarations and to bank remittances, isolating variances per period and per deduction type.
- Deadline monitoring: remittance due dates are tracked against actual payment dates so any late or missed payover is flagged before it accrues penalties.
- Exception workflow: reconciling items are routed to the responsible payroll officer with evidence requests and resolution status.
- Audit-ready export: the platform produces a period pack tying deductions to source payroll and SARS confirmations for the EMP501 and AGSA file.
Key Takeaways
- Deducted statutory amounts are trust monies and must be remitted by the seventh of the following month.
- Accuracy and timeliness are distinct risks, each with its own penalty exposure.
- Most SARS assessments stem from payroll-to-declaration reconciliation gaps.
- Continuous monitoring closes the gap before the bi-annual EMP501 reconciliation.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.