SARS Update on EMP501 Submissions
The upcoming Employer Interim Reconciliation is scheduled from 16 September to 31 October 2024. This period allows employers to reconcile declarations for the first six months of the reconciliation year, specifically from 1 March 2024 to 31 August 2024.
Key Submission Requirements:
Employers are required to submit their Employer Reconciliation Declaration (EMP501) through eFiling or e@syFile™ Employer.
The submission must include monthly Employer Declarations (EMP201) and payments made, ensuring that tax values for PAYE, UIF, and SDL match the interim IRP5/IT3(a) certificates.
Steps to Ensure Smooth Reconciliation:
Download and Update: Employers and tax practitioners should download the latest version of e@syFile™ Employer from the official SARS eFiling website.
Import and Capture Data: Import electronic IRP5/IT3(a) certificates and manually capture any additional ones.
Review and Submit: Review all details for accuracy, including monthly liabilities and Employment Tax Incentive (ETI) claims, and submit the reconciliation.
How to submit
Employers with 50 or fewer employees can opt between SARS eFiling and e@syFile™ Employer. Larger employers must use e@syFile™ Employer.
Small businesses with up to five IRP5/IT3(a) certificates can seek direct assistance at SARS branches, but an appointment is necessary.
Compliance and Consequences
Accurate and timely filing is crucial. Failure to comply could result in penalties of 1% of the annual PAYE liability, potentially increasing to a maximum of 10%. Severe violations, such as failing to deduct or remit employee tax, may lead to criminal charges, including fines or imprisonment up to two years.
Support available
For further guidance, accountants and employers can refer to the Employer Reconciliation Process Guide and the e@syFile™ Employer User Guide available on the SARS website. Ensuring familiarity with these procedures will aid in avoiding common pitfalls and penalties associated with non-compliance.
Read the SARS Notice for more information here.
