In January’s Release 5.5b, provision was made to accommodate Lesotho with the implementation of a Final Deduction System (FDS). 

Under the FDS, the employer is required to withhold the correct amount of PAYE and to decrease the need for reassessment of tax liabilities by the LRA. Any overpayments and underpayments of PAYE should happen through the payroll.

Under the FDS, the employer can:

• apply an accurate YTD PAYE calculation using actual YTD values, and
• deduct employment related expenses incurred in the production of employment income to calculate chargeable employment income.

 In line with this, the LRA has published a new P19 for 2020/2021 which must be submitted with the FDS Monthly Reconciliation Form.

 The FDS must be applied in 2020/2021.

Refer to this link for guidelines on the changes associated with this provision, on the payroll