What’s New?
- 4 September 2019 – Updated PAYE BRS for Employer Reconciliation (2019 release) version 18.05 was published.
- 19 August 2019 – Updated PAYE BRS for Employer Reconciliation (2019 release) version 18.04 was published.
- 30 July 2019 – Updated PAYE BRS for Employer Reconciliation (2019 release) version 18.03 was published.
- 26 March 2019 – Updated PAYE BRS for Employer Reconciliation (2019 release) version 18.02 was published.
- 28 February 2019 – Updated PAYE BRS for Employer Reconciliation (2019 release) version 18.01 was published.
- 21 January 2019 – PAYE BRS for Employer Reconciliation (2019 release) version 18 was published.
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 Fund (UIF) amounts due and Employment Tax Incentive (ETI), if applicable]
- Payments made (excluding penalty and interest payments)
- IRP5/IT3(a)s generated – PAYE, SDL and UIF 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, UIF and/or ETI, if applicable.
|
Business Requirement Specification
|
Year Applicable | Submission dates* |
|---|---|---|
| BRS – PAYE Employer Reconciliation for 2019 / 2020 | 2020 Annual Employer Reconciliation (1 March 2019 – 28 February 2020) |
Interim: 23 Sep – 31 Oct 2019 Annual: 1 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:
- e@syFile™ Employer or
- If you have 50 IRP5/IT3(a)s or less, use eFiling.
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.
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 e@syFile™ Employer available. To download the latest version, click here.
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 e@syFile™ Employer will use the information, from all the tax certificates, to automatically calculate the certificate totals for your EMP501.
- Enter your monthly liabilities, payments and Employment Tax Incentive (ETI) information, if applicable, and e@syFile™ Employer will calculate the rest!
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 branchwhere an agent will help them capture these IRP5/IT3(a)s and the EMP501.
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 e@syFile™ Employer, read more here.
6. Send your reconciliation before the deadline to avoid penalties and interest being charged.
Please note: Submissions made on a disc at a SARS branch is no longer available.
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).