Tax Practitioner Connect Issue 75 (September 2026)

The Employer Interim Reconciliation submission period is from 21 September to 31 October 2026. During this time, all employers must reconcile their declarations for the first six months of the reconciliation year — 1 March 2026 to 31 August 2026 — and submit their EMP501 on eFiling or e@syFile™ Employer. Employers with fewer than 50 employees may use eFiling.

Key Changes for 2026

• Updated e@syFile™ Employer release: SARS plans to release the updated e@syFile™ Employer build for the Employer Interim Reconciliation in mid-September 2026. Employers must download and use the latest version once it is formally released.
• Business Requirements Specification (BRS): The Business Requirements Specification, “SARS_PAYE_BRS – PAYE Employer Reconciliation V25.3.0”, for the Employer Interim Reconciliation submission period 2026-08, is available on the SARS website. Employers and payroll administrators are encouraged to review the updated BRS to align payroll systems and submissions with the latest requirements.
• Income Tax registration support: The updated BRS includes a new source code for ITREG to mitigate duplicate Income Tax registration for employees.
• Validation and source-code updates: Minor amendments have been made to source-code validations and descriptions. Employers and payroll administrators should review these changes before preparing their interim reconciliation submissions.

Income Tax Numbers Remain Mandatory

Income Tax numbers have been strictly enforced in e@syFile™ Employer and eFiling since the February 2026 employer Filing Season. Employers must ensure that all employees have valid Income Tax numbers before submitting their reconciliation. Missing or invalid Income Tax numbers may delay processing and may result in EMP501 submissions being rejected.

To register or retrieve Income Tax numbers:

• Employers: Use the ITREG/BundleReg process on eFiling or e@syFile™; the Tax Reference Number Enquiry Service on eFiling; or visit a SARS Service Centre, with an appointment, to register or request employees’ numbers.
• Employees: Individuals can register or retrieve their own tax numbers on the SARS website under the Individuals section.

Submission Channels

Employers can submit their EMP501 declarations and employee tax certificates through the following channels:

• e@syFile™ Employer — Available to all employers and can be used regardless of the number of employee tax certificates being submitted.
• SARS eFiling — Employers can submit through eFiling, subject to a maximum of 50 IRP5/IT3(a) certificates per submission.
• As an exception, employers with five or fewer certificates who are unable to submit via eFiling or e@syFile™ Employer may book an appointment and visit a SARS Service Centre for assistance with their submission.

Accuracy and Timely Filing is Critical

By submitting accurate declarations on time, employers can enjoy a smoother reconciliation process while avoiding unnecessary penalties, interest, and additional administrative work.

• Incorrect calculation of the monthly PAYE liability may result in penalties and interest. This includes corrections made on the EMP501 reconciliation, because any shortfall is attributed to the last month of the reconciliation period.
• Employers must submit an accurate EMP501 using e@syFile™ Employer or SARS eFiling by 31 October 2026 to avoid late-submission penalties.

Consequences of Non-Compliance

Failure to comply with reconciliation requirements carries serious consequences:

• Penalties: Late submission of an EMP501 will result in administrative penalties equal to 1% of your annual PAYE. This penalty increases by 1% for every month the return remains outstanding, up to a maximum of 10%.
• Forfeiture of ETI: ETI employers with unused ETI will forfeit the ETI for non-submission or when the employer has a non-compliant status.
• Fines and Imprisonment: Employers who wilfully or negligently fail to submit EMP201 or EMP501 returns will be guilty of an offence. Upon conviction, they will be liable for a fine or imprisonment for up to two years.

What Constitutes a Criminal Offence?

Employers may face a fine or imprisonment for up to two years if they:

• Fail to deduct employees’ tax (PAYE) from remuneration, or fail to pay the deducted tax to SARS within the prescribed period;
• Do not deliver IRP5 or IT3(a) certificates to employees or former employees within the prescribed deadlines; or
• Use employees’ deducted tax for purposes other than paying the correct amount to SARS.

Remember to Check Your Submission Status

After submitting an EMP501, employers should regularly monitor the status of their submission and review the PAYE Dashboard to confirm that everything was processed correctly. Taking this simple step provides peace of mind that no outstanding obligations remain.

For more information about completing manual certificates, employers can go to the e@syFile™ Employer User Guide or access the Step-by-Step Guide to the Employer Reconciliation Process.