What is it?
An employer needs to submit a reconciliation showing details of the total amount of Employees’ Tax [Pay-As-You-Earn (PAYE)], Skills Development Levy (SDL), Unemployment Insurance Fund (UIF) and/or Employment Tax Incentive (ETI) deducted or withheld as well as the details of Employee Tax certificates [IRP5/IT3(a)s] issued during the tax year.
The Monthly Employer Declaration (EMP201)
Top Tip: Qualifying Employers did you know you may claim the ETI on your EMP201 submission? To see if you qualify or for more information read more.
The amounts deducted or withheld by the employer must be paid to the South African Revenue Service (SARS) on a monthly basis, by completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or ETI. A unique Payment reference number (PRN) will be pre-populated on the EMP201, and will be used to link the actual payment with the relevant EMP201 payment declaration.
Top Tip: Need help completing your EMP201? Click here for more information.
The Employer Reconciliation Declarations (EMP501, EMP601 and/or EMP701)
Top Tip: Employers need to submit their reconciliation by the date published in the latest Government Gazette.
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) 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.
Top Tip: If an employer has submitted the EMP501, then the request for correction is done via the EMP501 and not the EMP201For the latest information on reconciliation click here.
The Employee Tax Certificate [IRP5/IT3(a)]
An employer must issue an employee with an IRP5/IT3(a) where remuneration is paid or has become payable. The IRP5/IT3(a) discloses the total employment remuneration earned for the year of assessment and the total amount of employees’ tax deducted or withheld.
Certificates are issued for the full year 01 March to 28/29/February or alternatively for the period that the employee was employed.
Employers who are subject to an audit can now view the Audit letters on eFiling and [email protected]™. Employers can also upload supporting documents in response to the Audit letters or submit a Request for Correction of the EMP201 or EMP501. Where employers are not registered on eFiling or [email protected]™ they can submit a Request for Correction at the Branch or submit supporting documents at the Branch in response to the Audit.
To see the steps for uploading supporting documents for a PAYE Audit, click here.
Top Tip: Need to find a Source Code?
IT3(b) – Certificate of Income Investments Property Rights and Royalties – External Form
IT3(c) – Certificate of Income re Disposal of Unit Trusts or other Financial Instruments – External Form
IT3(e) – Return of Purchases Sales or Shipments – External Form
PAYE-easyFile-G001 – easyFile Employer User Guide – External Guide
PAYE-GEN-01-G10 – Guide for Employers iro Employees Tax for 2016 – External Guide
Frequently Asked Questions
FAQ: What to do if the EMP501 reconciliation was submitted for the incorrect period?
Employers will receive the below pop-up message when an incorrect...Read More