Tax and SARS knowledge base

What payroll records must an employer keep for SARS?

Last reviewed: 28 August 2026

Direct answer

An employer should retain the payroll records that explain each payroll run and support the employer's SARS declarations, payments, employee tax certificates and annual reconciliations. SARS's record-keeping guidance says records must be kept in their original form, in an orderly and safe place, and generally for five years from the date the relevant return was submitted.

The precise record set depends on the employer's payroll, tax types and transactions. Start with a monthly file that connects employee-level payroll data to the EMP201, Payment Reference Number, payment proof and SARS receipt. Add an annual file that connects the employee certificates and EMP501 reconciliation to the same underlying payroll data.

What this means in practice

A payroll record is more than a final payslip. It includes the source information and approvals that explain how remuneration, deductions, allowances, benefits and employer contributions were processed. It also includes the evidence that the employer submitted the correct declaration and paid it using the correct period and reference.

Use a clear folder structure by tax year and payroll month. For each month, retain the payroll register, reports showing payroll-tax totals, the submitted EMP201, SARS receipt, PRN, bank payment proof and any adjustment note. For annual reconciliation, retain the employee certificate output, EMP501 submission records, validation messages, exception reports and evidence supporting corrections.

Control access carefully. Payroll files often contain identity numbers, contact details, bank information and remuneration. Limit access to staff who need it, keep a record of material changes and avoid sending unprotected files through informal channels. Backup copies are useful only if they can be restored, protected and traced to the correct payroll version.

Step-by-step

Create a secure tax-year folder and separate subfolders for each payroll month, annual reconciliation and employee master-data changes.

Save the payroll register and calculation reports before and after each payroll is finalised. Keep the version and date visible.

Retain documents supporting payroll inputs, such as employment terms, approved salary changes, leave or bonus approvals, reimbursement evidence and benefit information where relevant.

Save the EMP201 submitted for the month, the SARS receipt, PRN and bank confirmation. Check that all relate to the same tax period.

Keep a log of corrections, including what changed, why, who prepared it, who reviewed it and the evidence used. Link it to the revised SARS submission where one was needed.

For EMP501 work, retain certificate outputs, reconciliation reports, submission receipts and the evidence for any corrected certificate.

Review the retention date periodically. SARS says records are generally retained for five years from return submission, but do not destroy records while a SARS instruction, audit, dispute, legal requirement or business need requires them to be retained.

Documents and records to keep

Employee payroll master data and verified changes, held securely.
Payroll registers, payslips, journals, calculation reports and approval records.
EMP201 forms, receipts, PRNs, payment confirmations and account correspondence.
IRP5 or IT3(a) certificate outputs, EMP501 reports and reconciliation evidence.
A record of amendments, system backups and the ability to retrieve the original record form.

The best file is one a reviewer can follow without rebuilding the payroll from memory. It should show which records came from the payroll system, which came from the employee or manager, and which came from SARS.

Important limits and exceptions

The five-year statement is a general SARS record-keeping rule, not permission to delete all records on a fixed anniversary. Different tax rules, a live audit, a dispute, a request from SARS or another law can affect what must still be held. Keep records in original form unless an authorised process provides otherwise.

An organised archive does not prove that a declaration was correct. Reconciliation and review remain necessary. Conversely, a minor apparent difference should be investigated from source records rather than being overwritten in historic reports.

When to get tailored advice

Get help where records are incomplete after a payroll-system change, acquisition, staff departure, ransomware incident or migration to a cloud provider. Advice is also sensible if SARS requests records, an annual reconciliation has material errors, or retention and privacy obligations appear to conflict.