South African employers should review their payroll controls after SARS revised the Third-Party Appointment, or AA88, process on 27 October 2026. The update changes the automated processing schedule for certain employee tax debts and administrative penalties, giving employers more time to load deductions before payroll closes and reducing repeated appointments and cancellations. SARS announced the process change on 27 October 2026.

An AA88 appointment allows SARS to instruct an employer or another third party holding money for a taxpayer to withhold and pay an amount to SARS. For employers, this can mean deducting a specified amount from an employee’s salary and paying it over by the date stated in the notice. The process relates to outstanding personal income tax, including certain assessed debts and administrative penalties.

What has changed in the AA88 process?

SARS says the revised schedule is intended to improve automated processing. Personal income tax debt appointments are generated monthly, while appointments relating to overdue administrative penalties are generated every second month. The updated employer guide records the effective date as 27 October 2026 and provides the generation and recommended synchronisation periods for employers.

The change does not remove the employer’s responsibility to act on a valid notice. SARS’s guide states that employers must review affected taxpayer records, deduct the stipulated amount where applicable and pay SARS by the due date. If an employer cannot execute the appointment, it must provide an appropriate outcome or reason through e@syFile or an approved SARS support channel.

Who is affected?

The update is relevant to employers registered for PAYE that use e@syFile Employer and may receive AA88 notices. It is particularly important for payroll administrators, finance managers, outsourced payroll providers and businesses with large or frequently changing employee records.

An employer should not assume that an AA88 amount represents the employee’s full tax balance. SARS notes that the amount in the notice may differ from the taxpayer’s total outstanding account. Employers should therefore process the notice as issued and direct the employee to SARS if the underlying debt or penalty is disputed.

Payroll checks employers should make now

  • Update e@syFile Employer: Confirm that the latest version is installed and create a secure database backup before making changes.
  • Check access rights: Make sure the eFiling profile is linked to the correct PAYE number and that authorised payroll users can access AA88 functions.
  • Synchronise regularly: SARS recommends synchronising and reviewing AA88 information from the beginning of each month after the relevant generation process.
  • Reconcile deductions: Match each notice to the correct employee record, payroll period, deduction and payment reference.
  • Monitor employee movements: Review cases involving employees who have left the business, are deceased or have affordability concerns, and submit the correct outcome where applicable.
  • Track due dates: An employer that fails to pay in accordance with a notice may become personally liable for the defaulted amount.

Practical next steps for finance teams

Businesses should add AA88 monitoring to their monthly payroll close checklist rather than treating it as an occasional SARS administration task. Assign responsibility for synchronisation, review, approval, payment and reconciliation, with a clear audit trail for every notice received.

Employers should also brief payroll staff and review their escalation process where an employee disputes the debt or the business cannot make the deduction. For additional support with payroll and tax controls, businesses can explore Your Financial Partner’s accounting and advisory services.

This is a practical summary of SARS guidance, not personal tax advice. Employers should obtain professional advice where an AA88 notice is disputed or cannot be implemented as issued.