A reminder from PKF Octagon that the Employer Annual Reconciliation is due for submission to SARS from April 2018.

What is this?

Employer Annual Reconciliation 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).

Every employer who is registered at SARS for Pay-as-you-earn (PAYE), Unemployment Insurance Fund (UIF) or Skills Development Levy (SDL), should submit an EMP501. An employer is required to submit an accurate reconciliation declaration (EMP501) in respect of the monthly declarations (EMP201) that were submitted, payments made and the IRP5 / IT3 (a) certificates for the following periods:

• Annual period: this is for the period from 1 March 2017 to 28 February 2018
• Interim period: this is for the period from 1 March 2018 to 31 August 2018

When is this due?

The Employer Annual Reconciliation starts on 18 April 2018 and employers have until 31 May 2018 to submit their Annual Reconciliation Declarations (EMP501) for the period 1 March 2017 to 28 February 2018 in respect of the Monthly Employer Declarations (EMP201) submitted, payments made, Employee Income Tax Certificates [IRP5/IT3 (a)] and ETI, if applicable.

It is recommended that employers accurately verify and update each employee’s personal and financial details before submitting their Annual Reconciliation Declaration (EMP501) and Employees Income Tax Certificates [IRP5/IT3(a)s] to SARS.

What happens when you miss the deadline?

Penalties are charged on the following:

• Non-submission of an Employer Annual Reconciliation (EMP501) on or before the
  due date.
• Non-submission of employee IRP5 / IT3 (a) certificates.
• Submission of incorrect or inaccurate data relating to the IRP5 / IT3 (a) certificates

Please contact our team should you have any questions or need any assistance with your annual reconciliations.