2018 ANNUAL EMPLOYER RECONCILIATION (1 MARCH 2017 – 28 FEBRUARY 2018)

Every year employers are required to submit their Pay-As-You-Earn (PAYE) Employer Annual Reconciliations to SARS between 1 April and 31 May 2018, confirming or correcting payroll tax amounts which were declared in respect of the 2017/2018 tax period. The 31 May deadline is speeding closer and we’d like to remind you that we are here to help.

The Income Tax Act No. 58 of 1962, states that employers are required to:

• Deduct the correct amount of tax from employees,
• Pay this amount to SARS monthly,
• Reconcile these deductions and payments during the annual and the interim reconciliation, and
• Issue tax certificates to employees.

In order to successfully complete the Employer Reconciliation process, employers must submit an EMP501 declaration reconciling the taxes collected from employees with the monies paid to SARS and the total tax value of employees’ income tax certificates for the period in question.

There are three channels employers could make use of in order to complete the reconciliation process:

• Online using eFiling: It is important to note that employers can only file a maximum of 50 IRP5/IT3(a) (tax certificates) on eFiling.
• Online using e@syFile™ Employer – via SARS eFiling using an eFiling username and password.
• Manually at your nearest SARS branch

It is important to note that the submission of EMP501 forms via post or by placing it in the drop box at a SARS branch will no longer be accepted.

To download A STEP-BY-STEP GUIDE TO THE EMPLOYER RECONCILIATION PROCESS, click here.

For more information about PAYE, visit the SARS website.