Get ahead of the rush – Annual EMP501 February 2016 reconciliation opens 18 April 2016 – deadline is 31 May 2016!

Apr 6, 2016 | Taxation Blog

All employers must prepare and submit their Annual EMP501 declaration (EMP501) and employees’ IRP5’s to SARS reconciling the PAYE/SDL/UIF paid during the tax year 01 March 2015 to 29 February 2016 before 31 May 2016.  Late submission of the EMP501 return AND non-submission of information/incomplete IRP5 certificates will result in onerous penalties being levied.

SARS is urging employers to accurately verify and update each employee’s personal and financial details before submitting the annual EMP501 and providing their staff the 2016 IRP5/IT3 certificates. Employees will no longer be able to amend any pre-populated information on their personal Income Tax returns with SARS which will delay submission of their returns until rectified.

The only way to rectify any incorrect pre-populated SARS details would be for employees to advise their employers to make changes on the IRP5/IT3 data and re-submit these to SARS. This process can be time consuming and it may be difficult for employees to submit their returns on time.

SARS Income Tax numbers for all employees (regardless of income level) are part of the mandatory information required by SARS – submission of the Annual February 2016 IRP5/IT3 certificate without the mandatory information will be seen as incomplete information and penalties will be levied by SARS (even if submitted before the deadline).

Do not forget about the Employment Tax Incentive (ETI) to be included in the reconciliation submission!

Use the following steps to ensure correct and timeous submission:

  1. Use latest version of SARS E@syfile Employer software
  2. Import the payroll files or create manual employee data
  3. Reconcile your EMP501 and correct errors
  4. Ensure correct submission before the deadline

Please note that manual disc submissions at SARS branch offices are no longer available.

Our payroll systems provide accurate monthly payslips and reports required for the monthly/annual statutory returns (EMP201 and WCA/OID), along with electronic IRP5s at the end of the tax year for your employees – no manual calculations required and saving you precious time! Warning – Reconciliations which do not balance will be subjected to penalties being imposed by SARS!

Please contact Juanita Roman at our offices on 021 683 4834 by 25 April 2016 to schedule an appointment for in-house assistance to ensure that you meet your payroll obligations effortlessly.

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