It involves an employer submitting an accurate reconciled Employer Reconciliation Declaration (EMP501) with corresponding Employee Tax Certificates [IRP5/IT3(a)s] (Including EMP601).
There are three fundamentals that must reconcile in order for your submission to be successful which include:
- Monthly Employer Declarations (EMP201s) submitted [Pay-As-You-Earn (PAYE) and/or Skills Development Levy (SDL), Unemployment Insurance Fund (UIF) amounts due and Employment Tax Incentive (ETI) where applicable
- Payments made (excluding penalty and interest payments)
- IRP5/IT3(a)s generated – PAYE, SDL and UIF values.
In laymen’s terms:
Add up all the Tax that has been deducted from your staff for the period 1.3.2016 – 28.2.2017 and allocate all the payments to individual employees. This must reconcile – thus the name “reconciliation”. EG R1000 + R900 per month for two employees = R1900 x 12 = R22 800. Then allocated to each person = R1000 x 12 = R12 000 and R900 x 12 = R10 800. R12 000 + R10 800 = R22’800. Reconciled
- 18 April 2017 – Employer Annual Reconciliation
The Employer Annual Reconciliation starts on the 18th April 2017 and employers have until 31 May 2017 to submit their Annual Reconciliation Declarations (EMP501) for the period 1 March 2016 to 28 February 2017 in respect of the Monthly Employer Declarations (EMP201) submitted, payments made, Employee Income Tax Certificates [IRP5/IT3(a)] and ETI, if applicable.You can submit your Employer Reconciliation Declaration (EMP501) and Employees Income Tax Certificates [IRP5/IT3(a)s] online via e@syFile™ Employer, or if you have less than 50 employees, via eFiling. - During the Interim Reconciliation filing period in September/October 2016 employers were required to submit accurate reconciliation declarations for the six month period 1 March to 31 August, in respect of the Monthly Employer Declarations (EMP201) submitted, the interim Employee Income Tax Certificates [IRP5/IT3(a)] created, and payments made where applicable.
Who is it for?
Employers need to submit their reconciliation by the date published in the Government Gazette.
When and how should submissions be made?
Reconciliation declarations should be submitted twice during year of assessment, for the:
- Interim period – which is for the six month period 1 March to 31 August
- Annual period – which if for the full year 1 March to 28/29 February.
The first (next) submissions will be for the first six month period ending August 2017.
| Business Requirement Specification | Year Applicable |
| BRS – PAYE Employer Reconciliation for 2017 / 2018 | 2018 Annual Employer Reconciliation (1 March 2017 – 28 February 2018) |
| BRS – PAYE Employer Reconciliation for 2016 /2017 | 2017 Annual Employer Reconciliation (1 March 2016 – 28 February 2017) |
Completing your reconciliation online is the quickest, easiest and most convenient option. You can use either:
- e@syFile™ Employer or
- If you have 50 IRP5/IT3(a)s or less, use eFiling.
Copies of all declarations submitted and related supporting documents (relevant material) must be kept for five years.
Top Tip: Should your submission not balance across the three elements [EMP201, payments submitted and IRP5/IT3(a)s)], SARS will alert you by letter.
Aspects of this article was obtained from the www.sars.gov.za
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