South Africa: More news from SARS
EMPLOYER INTERIM RECONCILIATION SUBMISSION: 19 SEPTEMBER TO 31 OCTOBER 2022
This year, the Employer Interim Reconciliation Declaration (EMP501) submission period opens on 19 September 2022 and closes on 31 October 2022. Employers are required to reconcile their Monthly Employer Declarations (EMP201) for the first six months of a Reconciliation Year (1 March 2022 to 31 August 2022). These reconciliations are based on the Monthly Employer Declarations (EMP201) submitted, with the tax values of the interim IRP5/IT3(a)s certificates generated, accurate payroll information, employees’ tax (PAYE) payments made, thereafter an Employer’s Reconciliation Declaration (EMP501) is submitted.
- Employers, Tax Practitioners and Payroll Administrators need to download the latest Employers e@syFile version, which will be released on 16 September 2022. This can be done via SARS eFiling.
- Employers must submit all outstanding annual EMP501 reconciliations and make sure the monthly declarations (EMP201) for the reconciliation period have been submitted, and all payments due have been paid before submitting the interim EMP501 for 2022.
- Where employees are not registered for income tax purposes, employers must register them using Single (“Individual ITREG”) and bundle IT Registration (“Bundled ITREG”) for existing tax numbers as well as new registrations available on e@syFile™.
- First-time job seekers can register for income tax via eFiling or on the SARS MobiApp.
Why is it important for you to submit an accurate EMP501 return on time?
If an employer submits the EMP501 late, administrative penalties will be charged. The penalty will equal 1% of the year’s PAYE liability, which will increase each month by 1 percentage point up to 10% of the year’s PAYE liability. Furthermore, an employer who wilfully or negligently fails to submit an EMP201 or EMP501 return to SARS is guilty of an offence and is liable, upon conviction, to a fine or imprisonment for a period of up to two years.
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