Category: Update Blast | 2nd Submission May Companies EMP501 Employers of domestic workers (if registered for PAYE) Non-profit organisations Sole proprietors Trusts 1st Submission October
The EMP501 Employer Annual Declaration is a statutory submission required by all employers in South Africa. This reconciliation confirms the payroll taxes deducted and paid over to SARS throughout the tax year. Filing it accurately and on time is a legal obligation, ensuring compliance and preventing penalties. Here’s what you need to know to meet this requirement efficiently.
WHO NEEDS TO SUBMIT AN EMP501?
Every registered employer who deducts PAYE, UIF, and SDL must submit an EMP501. This includes:
- Companies
- Non-profit organisations
- Sole proprietors
- Trusts
- Employers of domestic workers (if registered for PAYE)
SUBMISSION DEADLINES
The EMP501 must be submitted twice a year:
- Interim Reconciliation (1st Submission): Covers March to August and is due by October.
- Final Reconciliation (2nd Submission): Covers the full tax year (March to February) and is due by 31 May.
Missing these deadlines could lead to penalties, interest, and non-compliance issues with SARS.
WHAT SHOULD BE INCLUDED?
The EMP501 must reconcile:
- Monthly EMP201 declarations submitted during the tax year
- Payments made to SARS
- IRP5/IT3(a) certificates issued to employees
- Any adjustments, corrections, or amendments
COMMON MISTAKES TO AVOID
Filing an EMP501 incorrectly can result in compliance issues. Here are some common errors and how to avoid them:
- Mismatched PAYE, UIF, and SDL amounts: Ensure reported amounts match actual payments made.
- Late submissions: Submit before the deadline to prevent penalties.
- Incorrect employee details: Verify employee ID numbers, tax reference numbers, and earnings.
- Discrepancies in reconciliation: Ensure all EMP201 submissions align with EMP501 records.
SUBMISSION PROCESS
Employers must submit the EMP501 via:
- eFiling (SARS website)
- SARS [e@syFile]™ Employer software
- Manual submission at SARS branches (only in exceptional cases)
The recommended method is e@syFile, which allows for bulk IRP5/IT3(a) submissions and reconciliation checks.
CONSEQUENCES OF NON-COMPLIANCE
Failure to submit an EMP501 or submitting incorrect information can result in:
- Administrative penalties of up to 10% of PAYE due
- Interest on late payments
- Audit and verification by SARS
- Potential legal action
FINAL STEPS BEFORE SUBMISSION
- Validate all employee records before finalising IRP5/IT3(a) certificates.
- Reconcile all monthly EMP201 submissions with actual payments.
- Double-check for errors before submission to avoid resubmission.
- Submit before the deadline to avoid penalties.
NEED HELP?
We at Tax A Sured (Pty) Ltd provide expert assistance to ensure your compliance with SARS.
DISCLAIMER
Nothing in this article and/or post should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure accuracy, Tax A Sured (Pty) Ltd does not accept any responsibility for consequences of decisions taken based on this article and/or post. It remains your own responsibility to consult the relevant primary resources when taking a decision.
