PAYE Compliance Is Tightening in February 2026 — What This Means for Your Business

Over the past few years, SARS has been tightening its compliance systems, and now a major shift is here. From February 2026, SARS will reject any PAYE (EMP501) reconciliation that includes an employee who is required to be tax‑registered but does not have a valid Income Tax Reference Number (ITRN). The long‑standing warning “grace period” officially ends with the 2026 Employer Filing Season, and any non‑compliance may lead to administrative penalties.

This position is reinforced in SARS’ updated PAYE guidance released on 30 January 2026, which makes it clear that EMP501 submissions missing required TRNs will not be accepted. Employers are also directed to updated FAQs and rules for the 2026 reconciliation period. This means that even one missing or incorrect tax number can block your entire submission.

To put this into context, imagine you’re preparing your EMP501 in early 2026. Everything balances, your payroll is clean, and your IRP5s are ready—until SARS rejects the whole submission because one seasonal worker from last year never provided their tax number.

Under the new rules, that one gap is enough to stop the entire process, delay the issuing of IRP5s, and expose your business to penalties. From February 2026 onward, every employee who must be tax‑registered must have a valid ITRN, accurately captured in your payroll data.

The good news is that the Annual EMP501 filing window for the 2026 reconciliation (covering 1 March 2025 to 28 February 2026) only opens on 1 April 2026 and runs until 31 May 2026. This means that although SARS’ enforcement begins in February, employers still have a bit of time to finalise outstanding registrations before the submission window opens.

Still, SARS strongly advises employers not to wait. They recommend verifying and registering all outstanding tax numbers as early as possible. Employers can use e@syFile™ (ITREG or BundleReg) or eFiling’s TRN Enquiry tools to check or request numbers. Employees can self‑register through the SARS website or other digital channels, and SARS branches remain accessible by appointment.

Here’s how we’ll support you through this transition. Our team already handles IRP5/IT3(a) certificates and full EMP501 reconciliations for most of our clients. We will run thorough pre‑submission reviews, validate ITRNs, and ensure your payroll aligns with SARS’ 2026 requirements so that your reconciliation is accepted on the first attempt.

But we’ll need your help. To keep you compliant under these stricter rules, we’ll reach out for any missing employee information, particularly valid ITRNs for new hires, seasonal and temporary workers, and long‑term staff whose details may not have been updated recently. Quick responses from you will help us register or verify numbers through SARS well before the April filing window.

Although these new requirements may feel like extra admin, they are part of SARS’ broader push for accurate, complete payroll data. With your cooperation and our support, we can navigate the 2026 PAYE changes smoothly, keeping your business compliant, efficient, and free from penalties.

If you’d like us to begin reviewing your employee records early, just let us know—we’re ready to assist every step of the way.