The Zimbabwe Revenue Authority (ZIMRA) continues its push for increased tax compliance, this time targeting how companies manage their payrolls. With the introduction of the new Employee Management Module, businesses will face stricter regulations on how they register employees, declare earnings, and remit Pay As You Earn (PAYE) tax. This is not just a minor tweak; it is a significant change designed to reduce tax evasion and ensure that all employees’ income is correctly captured by the system. This comes hot on the heels of ZIMRA’s recent moves to enforce tax compliance on other professionals, as highlighted in a recent article link to the other article where healthcare professionals have been compelled to provide valid tax clearance certificates as part of their license renewal process. It’s clear that ZIMRA is not backing down in its quest to broaden the tax base.

This latest development, as detailed in a recent public notice from ZIMRA (Public Notice of 05 2025, issued on 03 February 2025), is meant to bring more transparency to the PAYE process. The new module, which came into effect for the January 2025 PAYE Return, aims to streamline the registration of employees, the declaration of their earnings, and the automatic calculation and filing of the PAYE return. Let us examine the details of these changes to understand better what they mean for businesses and their employees.

What is the Employee Management Module?

According to ZIMRA, the Employee Management Module provides a platform for companies to register all their employees and declare their earnings. This module is designed to help automate tax computation and reduce the manual aspect of PAYE remittance. It seeks to make it easier for employers to comply with tax laws and ensure they are paying the correct amount of tax. This means that every company will now be expected to register its employees into this system. This system will automatically calculate the amount of tax that an employee owes. The automatic computation will also assist in reducing errors and also ensuring that all companies are applying the correct amounts to their calculations.

Here’s a breakdown of what the new module entails:

a) Registration and Tax Identification Numbers (TINs): The system will generate a Tax Identification Number (TIN) for each employee registered on the platform. Employees who already have a TIN will retain their existing numbers.

b) Mandatory Employee Details: When registering employees, companies must declare the marital status, whether the employee is blind, whether they have any physical disabilities, and also details of any of their children and their dates of birth. This will allow the system to automatically apply applicable tax credits such as those for children. This also means companies have to be thorough in collecting all employee’s personal information.

c) Employee Upload Function: Employers can either register their employees individually through the module or use the Employee Upload Function to register them in bulk. This is a welcome development especially for big companies with lots of employees as it makes the registration process easier and less cumbersome.

d) Earning Capture: Earnings can be entered on a per-employee basis or through the Employee Earnings Upload Function, again offering a flexible approach for different sizes of business. This means that employers will need to be meticulous in calculating the employee’s earnings before uploading into the ZIMRA system.

e) Automatic Tax Calculation: After generating earnings for all employees, the system will automatically calculate the PAYE and AIDS Levy due. This will then populate the PAYE return under the Tax Returns Management module. This move should significantly reduce errors and also reduce the manual work associated with calculating tax.

f) Tax Credits: Other tax credits such as medical aid contributions and medical expenses will be captured by the employer when they declare the employee’s earnings. Employers are expected to carefully account for these other expenses when declaring the employee’s earnings.

What Does This Mean for Businesses?

The introduction of the Employee Management Module is a clear indication that ZIMRA is aiming to enhance tax collection and reduce evasion. The module’s automatic features should make it easier for companies to comply with tax laws. However, it also means there will be an increased administrative burden for businesses. They will need to ensure they register all employees on the system accurately and ensure that all the required employee information is correctly captured. They also need to get their employee earnings correct for uploading into the system.

The onus is also now on the employer to collect all the necessary information from the employees such as marital status, details of their children and also any disabilities. Failure to capture this information correctly means that the employees might end up with a higher tax bill. Businesses will also have to ensure they are capturing employee earnings correctly. This includes wages, salaries, overtime and other earnings. All this needs to be accurately captured in order to ensure that the employee’s earnings are accurately captured.

Connecting it to ZIMRA’s Broader Strategy

The introduction of the Employee Management Module forms part of ZIMRA’s broader strategy to improve revenue collection. As has been highlighted in other articles here on Zimpricecheck.com link to article on PAYE tables this year has seen ZIMRA also introduce updated tax tables for 2025 that reflect the adjustments in tax rates. Also ZIMRA has been aggressive in its crackdown on smuggling and has imposed steep fines on people who try to evade duty. All these measures suggest that ZIMRA is trying to ensure that as many entities as possible are paying their correct tax bill. These efforts aim to widen the tax base and bring more revenue into the national treasury. However, as we have noted previously with the government’s focus on professionals, link to article on MLCSCZ compliance these moves do not necessarily deal with tax evasion, especially since the informal sector continues to function as a cash economy.

Frequently Asked Questions:

Q1: What is the Employee Management Module?

A1: The Employee Management Module is a new online system introduced by ZIMRA that companies must use to register employees, declare their earnings, and auto-fill the PAYE Return.

Q2: When did this module come into effect?

A2: The module came into effect for the January 2025 PAYE Return.

Q3: What information do I need to register my employees?

A3: You will need their Tax Identification Numbers (TINs), marital status, details of any disabilities, as well as details of their children (and their dates of birth).

Q4: Can I register all my employees at once?

A4: Yes, you can register all your employees at once by using the Employee Upload Function.

Q5: What happens if I do not register my employees using this module?

A5: Failure to register your employees using this module may result in penalties and also delays in filing your PAYE tax returns.

Q6: How are tax credits like medical aid contributions handled?

A6: Other tax credits such as medical aid contributions and medical expenses will be captured by the employer when declaring the employee’s earnings in the system.

Q7: Does the system calculate the tax for me?

A7: Yes, after generating earnings for all employees, the system will automatically calculate the PAYE and AIDS Levy due. This information will then be used to auto-fill the PAYE tax return.

Q8: What if an employee already has a TIN?

A8: If an employee already has a TIN, they will retain their existing TIN, and the new system will use that information.

Q9: Where can I get further assistance?

A9: You can contact the ZIMRA Contact Centre or your nearest ZIMRA Office for more help.

Q10: What is the purpose of this module?

A10: The module is designed to enforce tax compliance by companies by streamlining employee registration, automatic tax computation, and auto-filling of PAYE returns, and thus reducing the possibility of errors and ensuring accurate reporting.