For many employers in Botswana, submitting the monthly PAYE return is only one part of the compliance process. Equally important is ensuring that the payment made to the Botswana Unified Revenue Service (BURS) is correctly allocated to the relevant filing period.
Unfortunately, payment allocation issues are more common than many employers realise. Even where a PAYE return has been submitted on time and payment has been made in full, an incorrectly allocated payment can leave the employer's account reflecting an outstanding balance. This may result in penalties and interest being raised against the employer, despite the payment having already been made.
The first indication of a problem is usually the Employer's Statement of Account. If a payment has not been allocated correctly, the statement will reflect an outstanding liability for the relevant period, together with any penalties and interest that have accrued.
Resolving an unallocated payment requires the employer to provide sufficient evidence for BURS to trace and allocate the payment correctly. This typically includes proof of filing for the affected period, proof of payment, and where multiple tax periods are involved, a detailed reconciliation matching each filing period to the corresponding payment. The reconciliation should clearly set out the filing date, due date, payment date, payment amount, and supporting evidence for each period.
Employers can initiate the process by contacting BURS via email or telephone. Queries are generally directed to dedicated staff members responsible for payment allocation matters. However, there is currently no formal case reference or ticketing system to track the progress of these requests, making it important for employers to retain copies of all correspondence and supporting documentation.
Where an allocation issue cannot be resolved through the normal communication channels, an in-person visit to a BURS office may be required to finalise the allocation.
One of the more challenging aspects of this process is that BURS generally follows a “pay now, dispute later” approach. If penalties and interest appear on the Employer's Statement of Account as a result of the unallocated payment, employers are typically expected to settle these amounts while the allocation query is being resolved. In practice, the penalty is often paid together with the next monthly PAYE payment. Once the payment allocation has been corrected, any necessary adjustments can then be considered.
The process is generally reactive rather than proactive. Employers are not required to submit payment reconciliations with every monthly PAYE return. Instead, the need for action is triggered when the employer identifies an unallocated payment or other irregularity on the statement of account.
To resolve an unallocated payment efficiently, employers should have the relevant documentation readily available. This includes proof of filing for the disputed period, proof of payment, a reconciliation of filings against payments where multiple periods are affected, and, where a representative is acting on the employer's behalf, a valid Power of Attorney.
Regularly reviewing the employer's statement of account is one of the simplest yet most effective payroll compliance controls. Identifying an unallocated payment early allows employers to resolve the issue before penalties and interest continue to accumulate, reducing both administrative effort and unnecessary compliance costs.
If this article raised questions or highlighted areas you’d like to understand better, let’s talk.Our team can walk through the details, implications, and practical considerations for your business.
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