April to May each year is the time that employers are given to perform their employees’ tax reconciliation. During this Employer Reconciliation process, employers are required to submit an EMP501 declaration which reconciles the taxes collected from employees with the monies paid to SARS and the total tax value of employees, income tax certificates (IRP5), for the respective period.
The Income Tax Act No. 58 of 1962, states inter alia, that employers are required to:
To comply with the Income Tax Act, employers must submit their Monthly Employer Declarations (EMP201s) to SARS on or before the 7th of the following month.
SARS has over the past few years improved the process of reconciliations with the use of applications, such as eFiling and e@syfile. It has significantly reduced the administration required to submit the reconciliations.
The EMP501 reconciliation for the 12 months ended 28 February 2018, must be rendered on or before 31 May 2018.
Some important pointers to bear in mind:
If you need any assistance in completing your EMP501 reconciliations, please do not hesitate to contact our Payroll Department on 021 840 1600 or email@example.com.