COMPLETING AND SUBMITTING EMPLOYER DECLARATIONS
What is it?
An employer needs to submit a reconciliation
showing details of the total amount of Employees' Tax [Pay-As-You-Earn (PAYE)], Skills Development Levy (SDL), Unemployment Insurance Fund (UIF) and/or Employment Tax Incentive (ETI) deducted or withheld as well as the details of Employee Tax certificates [IRP5/IT3(a)s] issued during the tax year.
The Monthly Employer Declaration (EMP201)
Qualifying Employers did you know you may claim the ETI on your EMP201 submission? To see if you qualify or for more information read more
The amounts deducted or withheld by the employer must be paid to the South African Revenue Service (SARS) on a monthly basis, by completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or ETI. A unique Payment reference number (PRN) will be pre-populated on the EMP201, and will be used to link the actual payment with the relevant EMP201 payment declaration.
The Employer Reconciliation Declarations (EMP501, EMP601 and/or EMP701)
Employers need to submit their reconciliation by the date published in the Government Gazette
It involves an employer submitting an accurate Employer Reconciliation Declaration (EMP501), Employee Tax Certificates [IRP5/IT3(a)s] to be issued and if applicable, a Tax Certificate Cancellation Declaration (EMP601) 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 Employee Tax Certificate [IRP5/IT3(a)]
An employer must issue an employee with an IRP5/IT3(a) where remuneration is paid or has become payable. The IRP5/IT3(a) discloses the total employment remuneration earned for the year of assessment and the total deductions.