The Annual Reconciliation Declaration (EMP501) submission period opened on 1 April 2026 with final submission deadline being 29 May 2026.
The employee data that must be submitted by 29 May 2026 should cover the transaction period 01 March 2025 to 28 February 2026, for the Monthly Employer Declarations submitted, payments made and IRP5/IT3(a) generated. The payroll data reconciles the amounts of tax the employer deducted from the taxable remuneration of each of its employees together with what amount of tax the employer has paid to SARS on behalf of the employees. It also records other allowances that an employer pays to an employee as part of their remuneration benefits.
SARS Income Tax numbers for all employees (regardless of income level) is now mandatory information required by SARS – submission of the Annual EMP501 reconciliation without the mandatory information will be seen as incomplete information and will cause rejection of the submission – Penalties will be levied by SARS if not corrected and re-submitted to SARS by the submission deadline of 29 May 2026.
SARS also released an upgraded E@syFileTM Employer version to be used from 1 April 2026 for all EMP501 reconciliations going forward.
Employers are urged to submit all outstanding monthly declarations (EMP201) prior to the submission of the annual reconciliations (EMP501) to avoid the reconciliation from being declined by SARS.
Companies that fail to submit this reconciliation on time will become liable for late submission penalties up to 10% of the value of their annual PAYE liability.
Employers who wilfully and negligently fail to submit their EMP201 and EMP501 returns to SARS are guilty of an offence and are liable (upon conviction) to a fine or imprisonment for a period of up to 2 years!
Our outsourced payroll services ensure that we work with you to maximise your tax and payroll efficiencies and ensure that all your compliance requirements have been met.
Our payroll services would also allow you to be better prepared for the increased scrutiny from SARS with payroll queries and audits.
We can assist with all your UIF, Workmen’s Compensation and SARS payroll nightmares to save you both time and money!
Juanita Roman | Director PG DIP (Tax)
Please contact me should you require any assistance or advice.
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