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15 March 2021 – Employer Annual Reconciliation: 1 April 2021 to 31 May 2021
SARS constantly strives to improve its service offering to taxpayers. Changes introduced to SARS’ systems are a vital part of our vision to have a more accurate reconciliation process. Correct information submitted on time to SARS leads to a seamless tax experience for both employees and employers. For more information, please read the letter to our stakeholders.
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8 March 2021 – Preparation for annual Employers Filing Season
SARS calls on employers to ensure that they are ready to submit their annual reconciliation declarations with the latest and most accurate payroll information about their employees and the tax they have deducted.
The data that must be submitted to SARS from employers should cover the Monthly Employer Declarations submitted, payments made and Tax Certificates (IRP5/IT3) (a)s generated, covering the full tax year from 1 March 2020 to 28 February 2021.
Employers have from 1 April 2021 to 31 May 2021 to submit their data to SARS.
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11 December 2020 – Updated PAYE BRS Employer Reconciliation version 19.5
The correct validation for information code 4587 – Section 10(1)(o)(ii) exemption taken into account by the employer for PAYE purposes has been reinstated. In addition, the validation of source code 4102 – PAYE has been updated to be clear and concise.
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18 June 2020 – Updated PAYE BRS for Employer Reconciliation (2020 release) version 19.04
In this version the descriptions of the source codes for the donations to the COVID19 Solidarity Fund has been amended, as well as the ETI fields to cater for additional ETI that may claimed as part of the COVID19 Tax Relief.
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1 June 2020 – Employers Filing season is now closed. It was open from 15 April to 31 May 2020. You may still submit, but please note that penalties may apply.
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25 April 2020 – FAQs for Employers on Tax Relief for COVID-19
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23 April 2020 – Updated PAYE BRS for Employer Reconciliation (2020 release) version 19.03 was published
The PAYE BRS for Employer Reconciliation (2020 release) has been updated with the requirements for the COVID-19 Tax Relief to enable employers to claim the increase of the extended ETI, declare donations to the Solidarity Fund and payments received from UIF.
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22 April 2020 – PAYE BRS for Employer Reconciliation (2020 release) version 19.02 was published.
The PAYE BRS for Employer Reconciliation (2020 release) was updated with the requirements for the COVID-19 Tax Relief for ETI to enable employers to calculate the extended ETI.
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17 April 2020 – Printing of IRP5/IT3(a) certificates
We are aware that employers may be experiencing problems with the printing of IRP5/IT3(a) Employees’ Tax certificates from the eFiling platform. We recommend that you submit your Employer Reconciliation Declaration (EMP501) to SARS but do not yet print any IRP5/IT3(a) certificates. We will inform you when printing of IRP5/IT3(a)s using the eFiling platform may resume.
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15 April 2020 – Employer Annual Reconciliation was open from 15 April and closed 31 May.
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3 April 2020 – Frequently Asked Questions on Tax Measures (will be updated on a regular basis)
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31 March 2020 – Updated PAYE BRS for Employer Reconciliation (2020 release) version 19.01 was published.
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4 September 2019 – Updated PAYE BRS for Employer Reconciliation (2019 release) version 18.05 was published.
It involves an employer submitting an accurate Employer Reconciliation Declaration (EMP501), Employee Tax Certificates [IRP5/IT3(a)s] to be issued and if applicable, a Tax Certificate Cancellation Declaration (EMP601).
The three elements that must reconcile in order for your submission to be successful are the:
Reconciliation declarations should be submitted twice during year of assessment, for the:
The Business Requirement Specification (BRS) defines the data submission requirements for the tax certificates [IRP5/IT3(a)s], and the reconciliation for PAYE, SDL, UIF and/or ETI, if applicable.
Copies of all declarations submitted and related supporting documents (relevant material) must be kept for five years.
Don’t forget the following important details:
1. Make sure you have the latest version of e@syFile™ Employer available.
2. Import the electronic Employee Tax Certificates [IRP5/IT3(a)s] CSV files from your current payroll system.
3. Reconcile your EMP501 –
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- Capture all additional manual IRP5/IT3(a)s, and e@syFile™ Employer will use the information, from all the tax certificates, to automatically calculate the certificate totals for your EMP501.
- Enter your monthly liabilities, payments and Employment Tax Incentive (ETI) information, if applicable, and e@syFile™ Employer will calculate the rest!
4. Manually completed Payroll Tax, posted, are no longer accepted.
These forms include:
- Monthly Employer Declaration (EMP201)
- Employer Reconciliation Declaration (EMP501)
- IRP5/IT3(a)s
- Tax Certificate Cancellation Declaration (EMP601)
- Reconciliation Declaration Adjustment (EMP701).
Top Tip: An exception is made for employers with a maximum of five IRP5/IT3(a)s. The employer can still go into a
SARS branch where an agent will help them capture these IRP5/IT3(a)s and the EMP501.
These electronic channels are free, convenient and available 24/7.
5. Make sure your reconciliation submission balances.
- The EMP501 must reconcile to your EMP201s, which should have been submitted during the period (giving you a chance to correct this, where needed).
- The EMP201s must reconcile to payments made for the period.
- The EMP201 payments must reconcile to your IRP5/IT3(a)s generated.
Top Tip: Experiencing problems due to duplicate or incomplete EMP501 submissions made on e@syFile™ Employer,
read more here.
6. Send your reconciliation before the deadline to avoid penalties and interest being charged.
Please note: Submissions made on a disc at a SARS branch is no longer available.
When an audit is done internally by SARS on the EMP501, and PAYE liability is amended thereby, the employer is required to re-submit the EMP501 in accordance with the audit result on the assessment (EMP217).
