South African employers should review their payroll payment controls after SARS reiterated that employees’ tax must be paid within seven days after the end of each month. Where the seventh day falls on a weekend or public holiday, payment is due on the last business day before that date. SARS says late payment may result in penalties and interest. SARS included the reminder in its October 2026 SMME Connect issue.

What the SARS reminder means

Employers required to withhold employees’ tax must register for PAYE, calculate deductions using the prescribed tax tables and pay the amounts withheld to SARS within the applicable time frame. The obligation applies alongside the employer’s broader payroll responsibilities, including UIF and SDL where relevant.

The payment deadline should not be treated as a flexible month-end target. A business that waits until the seventh calendar day may already be late if that day is a Saturday, Sunday or public holiday. The payment should instead be brought forward to the last business day before the non-working day.

Who should pay particular attention?

The reminder is especially relevant to SMEs with small finance teams, outsourced payroll arrangements or manual payment approvals. It also matters where payroll is processed by one person but payments are released by another, as delays can occur when the payment date is not clearly assigned.

SARS’s October guidance also notes that the employer interim filing season runs until 31 October 2026. This makes October a useful point for businesses to test whether their monthly payroll records, payments and reconciliation processes are aligned. SARS lists the employer interim filing season dates on its Tax Season page.

Checks businesses should complete

  • Confirm the payroll calendar: Mark the PAYE payment date for every month, adjusting it where the seventh day is not a business day.
  • Separate preparation from approval: Ensure payroll calculations are reviewed before the payment instruction is authorised.
  • Reconcile the payroll liability: Compare the payroll register, bank payment, PAYE calculation and SARS submission records.
  • Check employee and employer data: Investigate unusual changes in remuneration, deductions, new starters and terminations before submitting.
  • Keep evidence: Retain payment confirmations, payroll reports and submission records in an organised compliance file.

Practical next steps

Employers should set a recurring internal deadline before the statutory payment date rather than relying on a last-minute approval. A simple two-stage control can help: payroll is reviewed first, then the payment and submission are independently checked against the approved payroll report.

Businesses should also confirm that their payroll software, payment authority levels and SARS access remain current. Where payroll is outsourced, the employer should establish who prepares the calculation, who approves it and who remains responsible for checking that payment was made on time.

For support with payroll processes, reconciliations and employer compliance, businesses can explore Your Financial Partner’s accounting and payroll services.