The Annual Reconciliation Declaration (EMP501) submission period opened on 01 April 2025, with the final submission deadline being 31 May 2025.
The employee data that must be submitted by 31 May 2025 should cover the transaction period 01 March 2024 to 28 February 2025 for the 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 employees. It also records other allowances that an employer pays to an employee as part of their remuneration benefits.
SARS also released an upgraded E@syFileTM Employer version to be used from 10 March 2025 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 willfully 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!
Please contact me should you require any assistance or advice.
We are here to help you.
Juanita Roman | Taxation Associate