SARS published a new PAYE Business Requirements Specification V19.3 on 23 April 2020:

23 April 2020 - Updated PAYE BRS for Employer Reconciliation (2020 release) version 19.03
The PAYE BRS for Employer Reconciliation (2020 release) has been updated with the requirements for the COVID-19 Tax Relief to enable employers to claim the increase of the extended ETI, declare donations to the Solidarity Fund and payments received from UIF.

Link: https://www.sars.gov.za/TaxTypes/PAYE/Pages/default.aspx

The following changes were made to the BRS, which is applicable for the 2020/2021 tax year, where 2 new IRP5 codes were added:

TERS benefit payable:

• The TERS benefit payable to the employee must be reported against IRP5 code 3724.
• This benefit is excluded from income tax i.t.o section 10 of the ITA, therefore, not subject to PAYE, UIF, SDL etc.
• As communicated in the ‘Covid-19 Relief Measures Affecting Payroll’ document, if the TERS benefit is paid to the employer it must be processed through the payroll.
• Until this code is implemented in the system, employers must still use IRP5 code 3602 as an interim solution

Update on original post (06/07/2020)

As per the post on 26 May 2020, no IRP5 code should be used to reflect the TERS payout on the payroll.Click on the link below for more details.

https://www.sagecity.com/za/sage-vip-payroll-hr-south-africa/f/sage-vip-payroll-hr-south-africa-announcements-news-and-alerts/151045/important-update-ters-and-covid-19-relief-fund-organisation-payment-irp5-codes

If you used the IRP5 code 3602 to reflect the TERS value on the payroll, please ensure to remove the code on your Earning Definition screen.

Donation made by employer to Covid-19 disaster relief trust:

• Any employee donation made by the employer on behalf of the employee to a Covid-19 disaster relief trust should be reported against IRP5 code 4055.
• This value will be allowed as a tax deduction, which is currently capped at 5% of balance of remuneration (before taking into account the tax deduction of the donation).
• Until this code is implemented in the system, the tax deductible amount must be reported against IRP5 code 4030 to allow for the 5% tax deduction

Please ensure to add separate lines on the payroll to reflect the specific values.

• How to add an earning line
• How to add a deduction/company contribution line

We will communicate to you on Sage City once an update will become available which will include these changes.