Tax and SARS knowledge base
How do I report income from two employers on one SARS return?
How do I report income from two employers on one SARS return?
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Direct answer
Use one ITR12 for the tax year and make sure every IRP5 or IT3(a) certificate from every employer is included. SARS adds your income sources together for the annual assessment, even though each employer normally deducts PAYE only on the salary it pays.
This means you can have two correctly issued certificates and still see a balance payable after SARS assesses the combined income. Do not manually combine or delete the certificate figures.
What this means in practice
An ITR12 is annual. It is not one return for each job. Where you received employment income from two employers, SARS's ITR12 guide explains that the return can contain separate IRP5 or IT3(a) pages for the separate certificates.
The certificates can arise from jobs held at the same time or at different times in the same year. What matters is that each certificate relates to the correct tax year and is checked against the original document issued to you.
Multiple employers can also affect the amount ultimately due. SARS explains that PAYE is an advance collection of tax. Each employer can deduct PAYE correctly from the salary it pays, but SARS assesses all of the taxpayer's income sources together. Because South Africa uses progressive tax rates, the combined assessment can be higher than the total PAYE deducted separately during the year.
If you have more than one source of remuneration, SARS says you must submit a return. The return should be complete and accurate before it is filed, even if one certificate appears late or needs correction.
Step-by-step
- Gather certificates from both employers.
Obtain an IRP5 or IT3(a) from each employer for the year of assessment. Check the employer name, the certificate number and the year before using it to review the ITR12.
- Open one ITR12 for the year.
The ITR12 should contain separate certificate information for the sources SARS has received. Do not open a separate individual return for each employer.
- Compare each prepopulated certificate with the original.
Check the details for one employer, then the other. Compare the certificate information with what SARS displays. A certificate that is wrong should be referred back to the issuing employer for correction.
- Do not combine, delete or rewrite certificate data.
Separate certificates are expected where separate employers issued them. The return should reflect the certificates as supplied. If a figure or certificate is wrong, the source record needs correction by the issuer.
- Complete the rest of the ITR12.
Check that all other information relevant to your annual return is complete. Your employment certificates are only one part of the return.
- Submit the return and review the result.
Keep the submission confirmation, then review the ITA34 assessment when SARS processes the return. Check the result against the certificates and your return records.
- Plan ahead if you continue to have two income sources.
SARS explains that a taxpayer in this situation may make a written request to one or more employers to deduct additional monthly PAYE. This can reduce a future amount payable, but it does not change the assessment already issued.
Documents and records to keep
- IRP5 or IT3(a) certificates from both employers.
- Payslips and employment records that help identify the correct source and period.
- The filed ITR12 and submission confirmation.
- The ITA34 assessment and any statement of account.
- Correspondence about a certificate correction.
Important limits and exceptions
Do not assume that a balance payable means either employer made a PAYE error. SARS specifically explains that separate correct PAYE deductions can still be insufficient after all income is assessed together.
The amount of any final balance depends on the taxpayer's full annual position. This article does not calculate a shortfall, advise on a specific payment amount or determine the treatment of other income, deductions or credits.
The article also does not cover the separate travel-allowance rules that can apply where a person received allowances from multiple employers. Get tailored help where those facts apply.
When to get tailored advice
Get tailored advice if a certificate is missing or wrong, you have travel allowances, other income sources, a material balance payable, or a SARS verification request. Also get help if you are unsure whether the certificate relates to a former employer or a current employer.
TaxProof can help you organise the two certificate records, compare them with the ITR12 and prepare questions for the employer or SARS. Employers must correct their certificates, and SARS determines the final assessment.
Related TaxProof guides
- Do I need to submit a tax return in South Africa?
- Why do I owe tax after changing jobs during the year? (B02-IND-003)