PRETORIA, 24 May 2019 – Employers are reminded that all Employer Annual Reconciliation Declarations (EMP501), Employee Tax Certificates [IRP5/IT3(a)s] and, where applicable, Tax Certificate Cancellation Declarations (EMP601) for the period 1 March 2018 to 28 February 2019 must be submitted to SARS by 31 May 2019.
It is crucial for employers to submit their annual reconciliation within the deadline and issue their employees with IRP5/IT3(a) certificates. These are the main documents required for individual taxpayers to file their personal income tax returns during Tax Season, which commences on 1 July 2019.
There are elements on the EMP501 that must reconcile for the reconciliation submission to be successful. These are:
- Monthly Employer Declarations (EMP201s) reflecting monthly Pay As You Earn (PAYE) deductions, Unemployment Insurance Fund (UIF) and Skills Development Levy (SDL);
- Payments made (excluding penalty and interest payments);
- Employee Tax Certificates [IRP5/IT3(a)s] generated; and
- Employment Tax Incentive calculations, if applicable for the period.
By requesting a Statement of Account after a submission on eFiling, employers are able to view any outstanding debt, outstanding returns and unallocated payments.
Declarations can be submitted via @syFile™ Employer or eFiling. Manually completed payroll tax forms are no longer accepted. Employers are encouraged to avoid the last-minute rush and ensure time for corrections, if required.
Copies of all declarations submitted must be kept for a minimum period of five years.
Since SARS uses the information declared by employers to prepopulate personal income tax returns, employees are reminded to check the information on their IRP5/IT3(a) certificates as well as the information submitted on tax certificates from third party institutions such as medical schemes. If information on the tax return is incorrect, the employee is required to approach their employer or third party institution to correct the information.
SARS tax education workshops on the use of [email protected]™ and employer annual reconciliation declarations are available before the deadline at various branches around the country. The schedule is available on the SARS website at ‘Useful tools_Learn about Tax‘.
The SARS Contact Centre can be contacted on 0800 00 7277 while guidelines on how to file can be obtained from the SARS website under the section on Businesses and Employers.
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