THE 2016 EMPLOYER annual RECONCILIATION
As from 19 August 2016, employers who are subject to an audit can now view the Audit letters on eFiling and e@syFile™. Employers can also upload supporting documents in response to the Audit letters or submit a Request for Correction of the EMP201 or EMP501. Where employers are not registered on eFiling or e@syFile™ they can submit a Request for Correction at the Branch or submit supporting documents at the Branch in response to the Audit.
Please note: If an employer is selected for audit and the EMP501 has been submitted then the request for correction is done via the EMP501 and not the EMP201.
1 April is the start of the 2016 Employer Annual Reconciliation for the period 1 March 2015 to 29 February 2016.
Don’t forget the following important details:
1. Start of Employer Interim Reconciliation 2016 is 1 September 2016.
Employers are required to submit an EMP501 confirming or correcting the amounts declared for Pay-As-You-Earn (PAYE), Skills Development Levy (SDL), Unemployment Insurance Fund (UIF), and Employment Tax Incentive (ETI) in their EMP201s submitted, the payments made and the tax values of the Employee Tax Certificates [IRP5/IT3(a)]. The interim reconciliation is for the six-month transaction period 1 March to 31 August and must be submitted during September and October.
For the 2016 Employer Interim Reconciliation the following legislative and system changes should be noted:
- From 1 March 2016 contributions to Pension, Provident and Retirement Annuity Fund is deductible for payroll taxes
- New source codes (3817, 3825, 3828) have been created to differentiate between Pension, Provident and Retirement contributions and new source code (4582) to indicate the total value “remuneration” portion where the source codes allow a 20/80 split
- Medical expenses tax credit for people over 65 years who are still employed have been introduced
- New source code (4120) has been created to capture the additional medical fees tax credit for employees over 65 years
- Taxpayers will be able to submit a request for correction in relation to audited periods after the audit has been completed. Audit outcomes will be communicated to taxpayers via listed email on SARS records, posted letters will only be sent to taxpayers who do not have an email listed under their profile
- EMP 501 has been updated to enable employers to print both EMP 501 and IRP5/IT3 (a) as a package. There is also an option for taxpayers to write the postal address in their preferred unstructured format
- e@syfile Employer enhancements include an upgrade to Windows 8, and bulk printing of IRP5/IT3(a) certificates
- Capturing of an EMP 201 return prior to 1999 will be allowed.
2. Make sure you have the latest version of e@syFile™ Employer
available. To download the latest version, click here
Please note - e@syFile version 6.7.2
E@syfile version 6.7.2
can be used to submit your 2016/02 reconciliation statement (EMP501) and all other reconciliations and re-submissions.
Remember: Always backup your current information on your computer before installing the new version, as the installation may delete your current information.
Top Tip: SARS will from time to time improve the system, to assist you to easily submit your reconciliation. Visit our website regularly or even better, subscribe to our RSS feeds and you will be alerted when any changes are made to the pages you subscribe too!.
- Import the electronic Employee Tax Certificates [IRP5/IT3(a)s] CSV files from your current payroll system
- Reconcile your EMP501 –
- Capture all additional manual IRP5/IT3(a)s, and e@syFile™ Employer will use the information, from all the tax certificates, to automatically calculate the certificate totals for your EMP501.
- Enter your monthly liabilities, payments and Employment Tax Incentive (ETI) information, if applicable, and e@syFile™ Employer will calculate the rest!
3. Manually completed Payroll Tax, placed in a drop-box at a SARS branch or posted, are no longer accepted.
These forms include:
- Monthly Employer Declaration (EMP201)
- Employer Reconciliation Declaration (EMP501)
- Tax Certificate Cancellation Declaration (EMP601)
- Reconciliation Declaration Adjustment (EMP701).
Top Tip: An exception is made for employers with a maximum of five IRP5/IT3(a)s. The employer can still go into a SARS branch where an agent will help them capture these IRP5/IT3(a)s and the EMP501.
Employers should either use eFiling (For 20 IRP5/IT3(a)s or less) or e@syFile™ Employer to submit their declarations. These electronic channels are free, convenient and available 24/7.
4. Make sure your reconciliation submission balances
- The EMP501 must reconcile to your EMP201s, which should have been submitted during the period (giving you a chance to correct this, where needed).
- The EMP201s must reconcile to payments made for the period.
- The EMP201 payments must reconcile to your IRP5/IT3(a)s generated.
Experiencing problems due to duplicate or incomplete EMP501 submissions made on e@syFile™ Employer, read more here
5. Send your reconciliation before the deadline of 31 May 2016, to avoid penalties and interest being charged.
Please note: Submissions made on a disc at a SARS branch is no longer available.
6. The latest Business Requirement Specification: PAYE Employer Reconciliation is available which defines the data submission requirements to SARS.
Stay informed by visiting the website regularly, or even better, subscribe to our RSS feeds
and you will be alerted when any changes are made to the pages you subscribe too!
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