17 September 2018 opened the submission period for the Employer Interim Reconciliation Submission. During this period, employers are required to submit an Employer Reconciliation Declaration (EMP501) and an interim Employee Income Tax Certificate for the six month period from 1 March to 31 August 2018.
Do I print tax certificates for this period?
No IRP5 is to be issued to an employee, unless it is a final certificate where one of the following events occurred on or before 31 August 2018:
The employee left the employ of the company
The employer ceased to be an employer
When is the deadline?
The deadline for the Mid-Year submission is 31 October 2018. With this in mind, we suggest that the EMP501 Interim submission be completed at least a week prior to the deadline to ensure there is enough time to sort out any issues that might arise when trying to process and submit the interim submission.
What compulsory information do I need to supply?
SARS requires determined information be provided for the employer as well as the employee. This information is generally captured and maintained on the payroll system where an interim submission file is extracted and imported into SARS e@syFile.
Prior to extracting the file out of the payroll system, the information needs to be checked and confirmed. Most payroll systems will validate all information for the reconciliation and will have a report detailing any information that is either missing or incorrect. SARS e@syFile will fail an import if certain information is missing and/or incorrect, however the details of these are specified in an exception report.
The important information required for the submission includes, but is not limited to:
PAYE Reference number
SDL Reference Number
UIF Reference Number
Physical Address of the Employer
Postal Address of the Employer
Reconciliation Contact Person details
Name and Surname
ID Number, Passport and Country or Asylum seeker permit number
Income Tax Number
Work Telephone Number
Tax Directive Numbers (if applicable)
What financial information do I need?
A reconciliation on all financial values should be completed to ensure the values being submitted to SARS are correct and balance to the values submitted on the Monthly EMP201.
The values declared on the EMP501 must reconcile back to payments made to SARS.
When am I ready to create my file?
If you are making use of a reputable Payroll and HRIS application, you will be able to validate the data prior to submitting or creating your electronic extract. Once there are no more exceptions, or only exceptions which could be valid, the file needs to be exported out of the payroll system and imported into SARS e@syFile.
Is it possible to add data / employee details?
Additional IRP5’s can be captured manually into e@syFile post importing your payroll file. Once all certificates have been captured, e@syFile will together with the imported information calculate the certificate totals for the EMP501.
The monthly liabilities, payments and ETI (if applicable) needs to be captured into e@syFile where the final figures and reconciliation values will be calculated. If there is a difference between the certificate totals and payments and liabilities captured from the EMP201, a valid reason for the difference is to be completed before submitting to SARS.
Once the reconciliation has been completed, it can be submitted to SARS electronically via the e@syFile application. No manual or electronic (via CD/flashdrive) submissions will be accepted at a branch anymore, all submission need to be made through e@syFile electronically.
Where do I get the latest version of e@syFile?
The latest version of e@syFile can be downloaded by clicking the below picture:
Quick check sheet:
Does the EMP501 balance with deductions made on payroll?
Does the cumulative value of EMP201’s submitted balance with EMP501 values in e@syFile?
Do the number of tax certificates tie up with the number of employees employed during the period? Including Active, inactive and reinstated (bearing in mind this could result in 2 certificates for a single individual)?
Did you make any changes in e@syFile that needs to be correct in the payroll system for future submissions? Remember to update the payroll system if this is the case.
Have you been in touch with your LabourNet Payroll and HRIS consultant to assist you with your submission?
Please feel free to contact your consultant should you require any further assistance.
For more information on the above topic, please contact the LabourNet Helpdesk at
0861 LABNET (0861 522638).
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