Pretoria, 23 May 2016 – SARS wishes to remind employers to submit their 2016 Annual Employer Reconciliations (EMP501’s) for the period 1 March 2015 to 29 February 2016 to SARS by 31 May 2016.
It is important that Employers submit their annual reconciliations not later than the 31 May 2016 deadline in order for SARS to pre-populate the 2016 Employees Income Tax Certificate[IRP5/IT3(a)] detail in the personal Income Tax Returns (ITR12’s) of taxpayers. This will assist taxpayers to complete and submit their ITR12’s early in the 2016 Tax Season, which commences on 1 July 2016.
Employers are urged to accurately verify and update each employee’s personal detail and reflect the correct personal and financial details on the IRP5/IT3(a)’s before submitting it with their EMP501’s to SARS.
This requirement is important as taxpayers will no longer be allowed to make any corrections to pre-populated IRP5/IT3(a) financial details on their ITR12‘s when completing and submitting it from 1 July.
In cases where details are incorrect, employees will have to revert to their respective employers who will need to make changes on the IRP5/IT3 (a) and re-submit these to SARS. This process can be time consuming and it may become problematic for employees to file a correct ITR12 on time.
There are three elements on the EMP501 that must reconcile for the reconciliation submission to be successful. These are:
  • Monthly Employer Declarations (EMP201s) reflecting your monthly PAYE, SDL, UIF and ETI (where applicable);
  • Payments made and allocated (excluding penalty and interest payment allocations); and
  • IRP5/IT3 (a)’s – value of PAYE, SDL, UIF and ETI (where applicable).
It is important to note that EMP501 reconciliations can be submitted via eFiling, which is available to employers submitting up to 20 IRP5/IT3(a)’s or via [email protected]™ Employer (any number of certificates).