Staff Reporter
The Zimbabwe Revenue Authority (ZIMRA) has introduced a new Employee Management Module on its TaRMS platform which is set to take effect with the January 2025 Pay as You Earn (PAYE) return.
The module aims to ease the registration of employees and the declaration of their earnings, offering employers a more efficient and automated way of handling payroll taxes.
ZIMRA’s Domestic Taxes Commissioner, Misherk Govha, said the system will automatically compute taxes once employers register their employees. The system will also enable employers to declare additional tax credits, such as medical aid contributions and medical expenses, directly within the module.
"The Employee Management Module will provide a platform for entities to register their employees and declare their earnings, allowing for automatic tax computation by the system. Each registered employee will be allocated a Tax Identification Number (TIN), and those who are already registered will retain their existing TINs," said Govha.
Key features of the new module include automatic PAYE and AIDS levy calculations, along with the option to register employees individually or in bulk using the employee upload function.
"Under the Employee Management Module, employers will be able to auto-fill PAYE and AIDS levy. After generating earnings for all employees, the PAYE and AIDS Levy will automatically populate the PAYE return within the Tax Returns Management module."
The registration process requires employers to input important employee details such as marital status, disabilities, and dependents' information. This data will not only streamline the tax process but also ensure that employees are eligible for the tax credits they are entitled to.
"In order to fully benefit from the system’s Comprehensive Employee Registration, employers must declare essential information when registering employees, including marital status, blindness, physical disabilities for both employees and their children, and the date of birth. This data will enable the system to automatically grant applicable tax credits," said Govha.
ZIMRA is encouraging both taxpayers and employers to familiarise themselves with the new system.
"ZIMRA encourages all taxpayers and employers to familiarise themselves with the new Employee Management Module to ensure compliance and a smooth transition," emphasised Govha.
The introduction of ZIMRA's Employee Management Module marks a significant step toward simplifying the PAYE process for employers. With automated tax calculations, streamlined employee registration, and the ability to declare relevant tax credits, the new system promises to enhance efficiency and compliance.
