A_03All employers registered at SARS for PAYE should submit their Interim Reconciliation (Bi-Annual Submissions) by 31 October 2017. The period, referred to is from 1 March 2017 to 31 August 2017.  Submissions opened on the 15th of September 2017 and close on 31 October 2017.

During the Interim Reconciliation submission period, employers are required to submit an Employer Reconciliation Declaration (EMP501) and Employee Income Tax Certificates [IRP5/IT3(a)s] for the six-month interim period March to August.

What is Reconciliation?

Employers must submit an accurate Interim Employer Reconciliation (EMP501).  The interim IRP5/IT3(a)s for the six-month period 1 March to 31 August 2017 must not be issued to an employee unless it is a final certificate (where the employee has left the service of the employer or the employer ceased to be an employer on or before 31 August 2017).

There are three elements that should be used to reconcile your submission and to be successful. They are:

  • 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

We would like to inform you of the following changes that have been implemented for this filing period.

New Income Source Codes 3719/3769, 3720/3770 and/or 3721/3771

Certain dividends in respect of restricted equity instruments are considered to be remuneration from which employees’ tax is deductible. When the above-mentioned codes are imported into or captured on e@syFile™ Employer or eFiling, a directive number will be required. You should enter fifteen zeros (0 x 15) as the directive number on the IRP5/IT3(a)s with these income source codes.

Please also note that there is an updated version of e@syFile™ Employer

The updated version of e@syFile™ Employer, version 6.8.0, should be used when filing your interim reconciliation and is available for download on www.sarsefiling.co.za. It is very important that you back up the current information on your computer prior to installing a new version as the installation may delete your current information.

You can submit your Employer Reconciliation Declaration (EMP501) and Employees Income Tax Certificates [IRP5/IT3(a)s] online via e@syFile™ Employer, or if you have less than 50 employees, via eFiling.

Payroll Tax (PAYE, SDL and UIF) compliance

To avoid penalties being levied make sure that you submit your declaration by no later than 31 October 2017.

At MMS, we can assist you with the successful submission of your Annual Reconciliation Declaration (EMP501). Please contact us for more information or for any assistance.

Marilize Louwies (Payroll Manager)

Phone : 011 831 2317

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)