Employers are required to submit their Employer Reconciliation (EMP501) by 31 May 2022
Information and Implications
It is advised to file the EMP501 well in advance, to allow time to resolve queries, should the South African Revenue Service (SARS) reject the EMP501 after the submission date. The effect of this is that the EMP501 will be deemed to not have been submitted and will be subject to administrative penalties for PAYE (as provided in paragraph 14(6) of the Fourth Schedule to the Income Tax Act).
Context for the beginner
The EMP 501 reconciles:
- the taxes collected from employees per the payroll
- with the monies paid to SARS on a monthly basis via the EMP201 submission
- and the total tax value of employees’ income tax certificates, for the respective period.
There are 2 ways of submitting the EMP501 reconciliation:
- SARS efiling
- SARS E@syfile (the only option for more than 50 employees)
Should you require assistance with your EMP501 you can find an accountant Here