PAYE Annual Reconciliation – Tax year 1 March 2021 – 28 February 2022

The Annual Reconciliation Declaration (EMP501) submission period has opened on 1 April 2022 with the final submission deadline being 31 May 2022. Employers who comply fully, in turn, make it easier for their own employees to fulfil their individual tax obligation when the Filing Season 2022 commences later in the year.

The employee data that must be submitted by 31 May 2022 should cover the transaction period from 1 March 2021 to 28 February 2022, with respect to Monthly Employer Declarations submitted, payments made and IRP5/IT3(a)s 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 employee. It also records other allowances that an employer pays to an employee as part of their remuneration benefits.

Companies who fail to submit this reconciliation on time will become liable for late submission penalties of up to 10% of the value of their annual PAYE liability

Employers who willfully and negligently fails to submit their EMP201 and EMP501 returns to SARS is guilty of an offence and is 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!