RECONCILIATION

What's New?

  • 1 November 2017 - Employer Interim Reconciliation
    CLOSED NOW. Employers who have not submitted their interim declarations are urged to do so urgently.


  • 2 October 2017 - Employers, the time to submit your interim EMP501s is now. It's as easy as 1,2,3. Hurry because the deadline is 31 October 2017:
    • Step One, confirm the amounts calculated for PAYE, SDL, UIF and ETI and declared in your monthly EMP201s.
    • Step Two, check the total tax value for PAYE, SDL, UIF and ETI of the IRP5 tax certificates issued to employees and submitted to SARS.
    • Step Three, complete the total monthly payments submitted to and allocated by SARS to the tax accounts for PAYE, SDL and UIF.

Submit your Employer Interim Reconciliation Declaration and Employee Income Tax Certificates on or
before 31 October 2017.

  • 22 September 2017 - Updated e@syFile™  Employer version 6.8.1 
    e@syFile™ Employer software has been updated from last week's version 6.8.0 to version 6.8.1, you can refer to the release notes for more details on the changes made to the software.
     
    e@syFile™ Employer version 6.8.1.

  • 15 September 2017 - August 2017 Employer Interim Reconciliation submissions open 15 September 2017
    The Employer Interim Reconciliation submission period is now open from 15 September and runs to 31 October 2017.
  • Reconciliation Declaration (EMP501) and Employee Income Tax Certificates [IRP5/IT3 (a) s] for the six month period 1 March to 31 August 2017. The interim IRP5/IT3(a)s for the six month period 1 March to 31 August 2017 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 2017).
     

Changes which have been introduced:

  • New Income Source Codes 3719/3769, 3720/3770 and/or 3721/3771
    • Certain dividends in respect of restricted equity instruments are considered to be remuneration from which employees’ tax is deductible. When the above-mentioned codes are imported into or captured on e@syFile™ Employer or eFiling, a directive number will be required. You should enter fifteen zeros (0 x 15) as the directive number on the IRP5/IT3(a)s with these income source codes.
  • Updated version of e@syFile™ Employer
    • The updated version of e@syFile™ Employer, version 6.8.0, should be used when filing your interim reconciliation and is available for download on www.sarsefiling.co.za. It is very important that you back up the current information on your computer prior to installing a new version as the installation may delete your current information.
    • 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.
  • Payroll Tax (PAYE, SDL and UIF) compliance
    • To avoid penalties being levied make sure that you submit your declaration by no later than 31 October 2017.
Please note:  You need to submit your Monthly Employer Declarations (EMP201) and payments to SARS by the 7th of each month. In instances where the 7th falls on a public holiday, Saturday or Sunday, the due date becomes the last business day prior to the 7th. When making payment, make sure to use the correct Payment Reference Number (PRN) so that your payments are correctly allocated.
  • 29 August 2017 - Employer Interim Reconciliation
    The Employer Interim Reconciliation will open on 15 September and run to 31 October 2017.

    During the Interim Reconciliation, employers are required to submit an Employer Reconciliation Declaration (EMP501) and Employee Income Tax Certificates [IRP5/IT3(a)s] for the six month period 1 March to 31 August 2017.

    Very importantly, employers must utilise the latest version of e@syFile Employer™ to file their reconciliation. We will inform you in due course about enhancements that will be introduced to the EMP501 and which version of e@syFile Employer™ you should download. Employers with 50 or less employees are reminded that they will be able to submit their returns via SARS eFiling without having to download e@syFile™.

  • 14 July 2017 - Omission of source code 4582
    With the implementation of the Retirement Reform requirements, information code 4582 (remuneration portion of income included under income codes: 3701 Travel Allowance, 3702 Re-imbursive Travel Allowance, 3802/3816 Use of Employer provided Vehicle) and its value were omitted from the submission file created by e@syFile™ Employer. Here is what Employers should do and what Employees should do, click here.

  • 13 April 2017 - External Business Requirement Specification (BRS): PAYE Employer Reconciliation (August 2017 Release)
    In preparation for the 2017/2018 year of assessment, we have released an updated external business requirement specification (BRS): PAYE Employer Reconciliation (August 2017 Release) specifying the changes.

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 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, placed in a drop-box at a SARS branch or posted, are no longer accepted. 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)
  • 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.  


To access this page in different languages click on the links below:
Last Updated: 20/11/2017 2:35 PM     print this page
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 Top FAQs

e@syFile™ Employer gets stuck on the "processing" message after start-up or logging in, how do I fix this?
When opening e@syFile™ Employer, JAVA is used to decrypt the protected database to allow access once the user verifies their login name and password. Due to the recent JAVA updates

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.