SARS EMP501 Interim Submission – August 2023 period

The Bi-annual August 2023 PAYE reconciliation period is from 18 September 2023 – 31 October 2023. – All employers must prepare and submit their declaration (EMP501) and employees’ IRP5’s to SARS reconciling the PAYE/SDL/UIF paid during the period 1 March 2023 to 31 August 2023. Late submission of the EMP501 return AND submission of omitted information/incomplete IRP5 certificates will now result in severe penalties being levied.

The EMP501 reconciles the payroll data/amounts of tax the employer deducted from the taxable remuneration of each of its employees together with the amount of tax which has been paid to SARS by the employer on behalf of the employee. It also records the required Employment Tax Incentive (ETI) claims for applicable employees during the respective reconciliation periods.

SARS Income Tax numbers for all employees (regardless of income level) is part of the mandatory information required by SARS – submission of the Bi-Annual August 2023 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).

Due to the increased SARS queries and audits on PAYE and the highly regulated Tax Administration Act, we highly recommend that an automated payroll is not merely a luxury, but a critical part of the daily function of any business. With our knowledge and years of experience, we can save you precious time and cost by assisting you with this important part of your business as an Employer.

Our payroll services would also allow you to be better prepared for the increased scrutiny from SARS with payroll queries and audits.

Our payroll department offers a wide range of services to save you time and cost which include:

• Monthly payslips with accurate PAYE/SDL/UIF payments together with automated calculation of Employment Tax Incentive (ETI) claims where allowed.
• Automated reports for monthly EMP201 returns, 6 monthly IRP5/Employer reconciliation and Workmen’s Compensation reports – no manual calculations required
• Electronic UIF information uploads
• Salary structuring

Companies that fail to submit payroll data on time will now be liable for late submission penalties of up to 10% of the value of their payroll.

Please ensure that the most recent E@syFile version is used for this EMP501 submission to ensure successful processing by SARS – please contact our tax department should you need help with this download.