What is an EMP501 - and when is it due?
An Employer Reconciliation is a report of all employees' earnings, which must be submitted to SARS each year of assessment. Employers are required to reconcile their Payroll Taxes like PAYE, SDL and UIF that was declared monthly on the Employer declarations (EMP201). Employer reconciliations occur every 6 months.
Submitting an accurate employer reconciliation declaration has now been made easier by outsourcing the service to boutique firms like Zeelie Professional Accountants SA.
Frequently asked questions
When must EMP501 be submitted?
EMP501 Employer Reconciliations must be submitted twice during a financial year. There is an Interim period – for the six-month transaction period 1 March to 31 August, this is also referred to as the Interim EMP501 Reconciliations. The Annual or Final EMP501 Employer Reconciliation covers the full tax year 1 March to 28/29 February.
What is EMP201 and EMP501
EMP201 payments is a Monthly Employer Declaration (EMP201) and the EMP501 is an Employer Reconciliation Declaration (EMP501)
Can you submit a EMP501 manually
Yes, once submitted at the branch you can select submitted manually.
Who submits the EMP501
Employers are Required to reconcile the Payroll Taxes and liabilities for example PAYE, SDL and UIF that was declared monthly on the Employer declarations (EMP201).
What is EMP501 admin penalty
The penalty can be charged up to 10% per cent of the total amount of Employees' tax deducted or withheld or which should have been deducted or withheld by the Employer from Remuneration for that period.
What type of employer must register for PAYE
All Employers must be registered (unless exempt by SARS). Where an Employer is liable to pay UIF, PAYE or SDL then the Employer must register with SARS and pay over the taxes monthly.
What are the EMP501 Dates
- Interim Period – Six-month period 1 March to 31 August (Due by 31st October)
- Annual Period – Full tax year period 1 March to 28/29 February (Due by 31st May)
What happens if EMP501 is submitted late
A penalty of up to 10% is levied on late PAYE liability. Furthermore, an Employer who willfully or negligently fails to submit an EMP201 or EMP501 return to SARS is guilty of an offence and is liable, upon conviction, to a fine or imprisonment for a period of up to two years. Employers should rather remain compliant to avoid further issues.
What are the EMP501 Submission dates
EMP501 Interim Employer Reconciliation Submission deadline - 31 May each year
EMP501 Final Employer Reconciliation Submission deadline - 31 October each year
What are the Employee tax certificates IRP5/IT3
IRP5 - Issued by an employer or entity from which you earned and pay as you earn paye has been deducted and paid over to SARS
IT3 - This certificate is for those employees earning below the tax threshold.
Do you need our help with your Employer Reconciliation?
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