RECONCILIATION

What's New?

  • 01 November 2018 - Employer Interim Reconciliation Submissions : CLOSED
    The Employer Interim Reconciliation started on 17 September 2018 and employers had until 31 October 2018 to submit their Interim Reconciliation Declarations (EMP501) and interim Employee Income Tax Certificate [IRP5/IT3(a)s] for the six month period - 1 March to 31 August 2018. Employers who have not submitted their interim declarations are urged to do so urgently.


  • 17 September 2018 - Employer Interim Reconciliation Submissions
    The Employer Interim Reconciliation submission period is open from 17 September until 31 October 2018. During the Interim Reconciliation submission period, employers are required to submit an Employer Reconciliation Declaration (EMP501) and an interim Employee Income Tax Certificate [IRP5/IT3(a)s] for the six month period - 1 March to 31 August 2018. The interim IRP5/IT3(a)s must not be issued to an employee, unless it is a final certificate (where the employee has left the service of the employer or the employer ceased to be an employer on or before 31 August 2018). Read more on the changes.

  • 10 July 2018 - PAYE BRS for Employer Reconciliation (August 2018 release) version 17.2 was published.

  • 14 June 2018 - PAYE BRS for Employer Reconciliation (August 2018 release) version 17.1 was published.

  • 01 June  2018 - 2018 Annual Employer Reconciliation (1 March 2017 – 28 February 2018)
    You are kindly advised that the deadline for the Pay-As-You-Earn (PAYE) Employer Annual Reconciliations submissions for the period 1 March 2017 – 28 February 2018 to SARS, confirming or correcting payroll tax amounts which were declared in respect of the 2017/2018 tax period has now closed as at 31 May 2018. Your submissions are late and should be submitted without any further delay as you may be liable for penalties.

  • 01 April 2018 - 2018 Annual Employer Reconciliation (1 March 2017 – 28 February 2018) - CLOSED 
    Employers are required to submit their Pay-As-You-Earn (PAYE) Employer Annual Reconciliations between 1 April and 31 May 2018 to SARS, confirming or correcting payroll tax amounts which were declared in respect of the 2017/2018 tax period.

    Business Requirement Specifications (BRS) and timelines

    ​Business Requirement Specification
    ​       Year Applicable​                 Submission dates*​                       
    BRS - PAYE Employer Reconciliation for 2018 / 2019 ​2019 Annual Employer Reconciliation
    (1 March 2018 - 28 February 2019)
    Interim: 17 Sep - 31 Oct 2018
    Annual: 1 Apr - 31 May 2019
    BRS - PAYE Employer Reconciliation for 2017 / 2018 ​2018 Annual Employer Reconciliation
    (1 March 2017 - 28 February 2018)
    Interim: 15 Sep - 31 Oct 2017
    Annual: 1 Apr - 31 May 2018 
     
    BRS - PAYE Employer Reconciliation for 2016 /2017​  2017 Annual Employer Reconciliation
    (1 March 2016 – 28 February 2017)
    Interim: 12 Sep - 31 Oct 2016
    Annual: 1 Apr - 31 May 2017
    * The final submission periods are subject to business requirements / readiness and calendar working day dates. Final confirmation will be communicated at the time of the relevant submission period. 

What is Reconciliation?

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).

The three elements that must reconcile in order for your submission to be successful are the:

  • 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), if applicable]
  • Payments made (excluding penalty and interest payments)
  • IRP5/IT3(a)s generated - PAYE, SDL and UIF values.

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 Business Requirement Specification (BRS) defines the data submission requirements for the tax certificates [IRP5/IT3(a)s],  and the reconciliation for PAYE, SDL, UIF and/or ETI, if applicable.

​Business Requirement Specification
​       Year Applicable​                 Submission dates*​                       
BRS - PAYE Employer Reconciliation for 2018 / 2019 ​​2019 Annual Employer Reconciliation
(1 March 2018 - 28 February 2019)
​​Interim: 17 Sep - 31 Oct 2018
Annual: 1 Apr - 31 May 2019
BRS - PAYE Employer Reconciliation for 2017 / 2018 ​2018 Annual Employer Reconciliation
(1 March 2017 - 28 February 2018)
Interim: 15 Sep - 31 Oct 2017
Annual: 1 Apr - 31 May 2018 
 
BRS - PAYE Employer Reconciliation for 2016 /2017​  2017 Annual Employer Reconciliation
(1 March 2016 – 28 February 2017)
Interim: 12 Sep - 31 Oct 2016
Annual: 1 Apr - 31 May 2017

* The final submission periods are subject to business requirements / readiness and calendar working day dates. Final confirmation will be communicated at the time of the relevant submission period. 

Completing your reconciliation online is the quickest, easiest and most convenient option. You can use either: 

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)], we will alert you by letter.
 

Don’t forget the following important details:

1. Make sure you have the latest version of e@syFile™ Employer available. To download the latest version, click here.
 
2. Import the electronic Employee Tax Certificates [IRP5/IT3(a)s] CSV files from your current payroll system.
 
3. 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!
4. Manually completed Payroll Tax, posted, are no longer accepted.
These forms include:
  • Monthly Employer Declaration (EMP201)
  • Employer Reconciliation Declaration (EMP501)
  • IRP5/IT3(a)s
  • 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.

These electronic channels are free, convenient and available 24/7.

5. 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.
Top Tip: Experiencing problems due to duplicate or incomplete EMP501 submissions made on e@syFile™ Employer, read more here.

6. Send your reconciliation before the deadline to avoid penalties and interest being charged.

Please note: Submissions made on a disc at a SARS branch is no longer available.  

When an audit is done internally by SARS on the EMP501, and PAYE liability is amended thereby, the employer is required to re-submit the EMP501 in accordance with the audit result on the assessment (EMP217).


To access this page in different languages click on the links below:

 

Last Updated: 08/11/2018 4:32 PM     print this page
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 Top FAQs

e@syFile™ Employer issues experienced when updating and/or installing vs 6.9.2
On running the online update, some Users have reported the following errors: 1. Failing to login in successfully as the system hangs

While downloading the latest version of the easyFile™ Employer, my anti-virus identified a virus and deleted any e@syFile™ Employer files already installed. Is there a virus on e@syFile™ Employer?
No, easyFile™ Employer is not infected by a virus. Make sure you have set your anti-virus to accept e@syFile™ Employer.

What to do if the EMP501 reconciliation was submitted for the incorrect period?
If you have submitted your 201608 EMP501 reconciliation, but you selected the 201702 period by mistake, the system will not allow you to capture and submit any EMP201 returns for the months of September 2016 to February 2017.

Why does my 2015 recon fail ETI now when it was submitted successfully in 2015?
SARS has not applied any ETI validations systematically prior to the August 2016 release. The validations that were introduced now applies to all tax years since the inception of ETI in 2014.

ETI validation reason - Monthly Minimum Wage is greater than the value in Monthly Remuneration?
The monthly minimum wage must be apportioned to the number of ETI hours. ETI may not be claimed if the employee is remunerated less than the monthly minimum wage.