Reconciliations

What’s New?

  • 1 June 2022 – PAYE Annual Reconciliation 2022 is now closed
    The Annual Reconciliation Declaration (EMP501) submission period closed on 31 May. Employers who have not yet submitted their annual reconciliation declarations can still submit their EMP501 declarations.  Please take note that administrative penalties will be charged. Click here for more information on Administrative penalties.

  • 16 February 2022 – BRS – PAYE Employer Reconciliation v21 0 0  was released

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 Contributions (UIC) amounts due and Employment Tax Incentive (ETI), if applicable]
  • Payments made (excluding penalty and interest payments)
  • IRP5/IT3(a)s generated – PAYE, SDL and UIC 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, UIC and/or ETI, if applicable.

Business Requirement Specifications (BRS) and timelines

​Business Requirement Specification
​       Year Applicable​                 Submission dates*​
BRS – PAYE Employer Reconciliation for 2022-20232023 Annual Employer Reconciliation (1 March 2022 – 28 February 2023)Interim:  19 Sep – 31 Oct 2022
BRS – PAYE Employer Reconciliation for 2021 / 20222022 Annual Employer Reconciliation
(1 March 2021 – 28 February 2022)
Interim: 13 Sep – 31 Oct 2021
Annual: 
1 Apr – 31 May 2022
BRS – PAYE Employer Reconciliation for 2020 /2021​​​2021 Annual Employer Reconciliation
(1 March 2020 – 28 February 2021)
Interim: 14 Sep – 31 Oct 2020
Annual: 15 Apr – 31 May 2021
BRS – PAYE Employer Reconciliation for 2019 / 20202020 Annual Employer Reconciliation
(1 March 2019 – 28 February 2020)
Interim: 23 Sep – 31 Oct 2019
Annual: 15 Apr – 31 May 2020
BRS – PAYE Employer Reconciliation for 2018 / 2019​​2019 Annual Employer Reconciliation
(1 March 2018 – 28 February 2019)
​​Interim: 17 Sep – 31 Oct 2018
Annual: 1 Apr – 31 May 2019
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 [email protected]™ Employer available.
 
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 [email protected]™ Employer will use the information, from all the tax certificates, to automatically calculate the certificate totals for your EMP501.
4. Manually completed Payroll Tax, 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. Remember to make an appointment first before going into a branch.

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 [email protected]™ Employer, read more here.

6. Send your reconciliation before the deadline to avoid penalties and interest being charged.

When an audit is done internally by SARS on the EMP501, and PAYE liability is amended thereby, the employer is required to re-submit the EMP501 in accordance with the audit result on the assessment (EMP217).
 
To access this page in different languages click on the links below:

Frequently Asked Questions

Table of Contents

Last Updated:

Facebook
Twitter
LinkedIn
Email
Print