What to give a provider so IRP5s come out right

You've just realised your payroll processor hasn't asked you for half the information they need, and you're worried the IRP5s your employees receive will be wrong. Before you panic—or before you even hire someone—it's worth knowing exactly what paperwork and data a competent provider needs from you to get those certificates right the first time.

An IRP5 is only as accurate as the source material. Your payroll provider can't magic correct certificates out of thin air; they need you to supply clean, complete records. The difference between a provider who asks for everything upfront and one who wings it becomes painfully clear when your employees spot discrepancies on their tax documents.

What your provider must ask for

A payroll processor handling IRP5 generation should ask you for proof of each employee's tax registration. That means SARS-issued documents confirming their tax number and status. They'll also need your company's PAYE reference number and proof that you're registered with SARS for PAYE, UIF and SDL—usually your letter of approval or online registration confirmation.

For each employee, they need a signed contract or engagement letter showing when employment started, what their job title is, and whether they're permanent, temporary or casual. They must ask for banking details for salary deposits and copies of any documentation around leave, bonuses, commissions or benefits that affect gross pay. If an employee has changed roles, taken unpaid leave, or left during the year, the provider should explicitly ask you to flag that upfront.

They'll also need your SDL levy registration details and proof of any skills development agreements, because that changes what goes on the IRP5. If you've made any deductions that aren't standard tax—loan recoveries, union fees, medical aid contributions—they need written authority from the employee for each one.

A thorough provider will ask you to confirm the number of months the employee worked in that tax year and whether they're claiming any tax exemptions. They should request copies of appointment letters or employment agreements and any amendments if salary changed mid-year. If you've had staff turnover, they'll need the exact final payment dates and reasons for termination.

Getting documentation right from the start

Don't wait until November when IRP5s are due to start gathering this. A good provider will send you a data-collection template or questionnaire weeks ahead, asking for every employee's full legal name as it appears on their ID, their date of birth, their residential address, and their contact details. They should ask whether each person is South African tax resident and whether they've worked elsewhere during the same tax year.

If any employee has a discrepancy—a name that doesn't match SARS records, a missing tax number, or conflicting information—your provider should flag it and ask you to fix it before IRP5 generation begins. This is where hiring someone who asks questions matters; a provider who submits without checking wastes everyone's time.

Keep copies of everything you give them. Store payroll registers, bank statements showing salary payments, leave records and any correspondence about employee status changes. If SARS ever queries an IRP5 after the fact, you'll need proof that your provider received accurate information from you. A provider worth their fee will also confirm receipt of all documents and send you a checklist showing what they have and what's still outstanding.

When you're looking for someone to handle payroll submissions, ask them directly: what documents do they ask for before they touch IRP5s, and how do they spot errors in what you've given them? Their answer tells you whether they'll catch problems before they become your employees' headaches. On Strove you can compare verified payroll processors, read what they ask for upfront, and choose someone whose process matches how organised your records actually are.