Employers should be aware that Employer Annual Reconciliation is due for submission at SARS from April 2018. If the relevant deadlines are missed, certain penalties will apply. Penalties are charged on the following:
What do I need to do?
- Non-submission of an Employer Annual Reconciliation (EMP501) on or before the due date.
- Non-submission of employee IRP5 / IT3(a) certificates.
- Submission of incorrect or inaccurate data relating to the IRP5 / IT3(a) certificates
Employer Annual Reconciliation 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).
Every employer who is registered at SARS for Pay-as-you-earn (PAYE), Unemployment Insurance Fund(UIF) or Skills Development Levy(SDL), should submit an EMP501. An employer is required to submit accurate reconciliation declaration (EMP501) in respect of the monthly declarations (EMP201) that was submitted, payments made and the IRP5 / IT3(a) certificates for the following periods:
Important dates to remember
- Annual period: this is for the period from 1 March 2017 to 28 February 2018
- Interim period: this is for the period from 1 March 2018 to 31 August 2018
The Employer Annual Reconciliation starts on 1 April 2018
and employers have until 31 May 2018
to submit their Annual Reconciliation Declarations (EMP501) for the period 1 March 2017 to 28 February 2018 in respect of the Monthly Employer Declarations (EMP201) submitted, payments made, Employee Income Tax Certificates [IRP5/IT3(a)] and ETI, if applicable.
It is recommended that employers accurately verify and update each employee’s personal and financial details before submitting their Annual Reconciliation Declaration (EMP501) and Employees Income Tax Certificates [IRP5/IT3(a)s] to SARS.
Please contact us if you have any questions or need any assistance with your annual reconciliations.
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)