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Are you up to date with your EMP501 recons?

a black and white photo of a lady sitting at a desk with a set of files using her financial calculator

If you’ve got your hands full with tax-related paperwork, filing accurate tax returns and meeting SARS deadlines could be one of the important responsibilities you battle with. And, if you get it wrong, the interest and penalties payable on late or inaccurate VAT, PAYE or company income tax returns can be harsh.

When it comes to Pay-As-You-Earn (PAYE) and EMP501s, your employer reconciliation is a detailed report of your employees’ earnings. The EMP501 must be submitted twice in a financial year and you, as the business owner, are responsible for ensuring the report’s accuracy.

Each month, you’re required to submit a monthly report called an EMP201 that details the taxes and levies paid by your employees. Deductions, such as PAYE, Skills Development Levy (SDL) and their Unemployment Insurance Fund (UIF) contributions, are collected by your company and paid over to SARS as part of the EMP201. However, this monthly report only reflects the total amount that is owed to SARS and not how much each staff member contributes towards the total.

This is where the biannual submission of your EMP501 comes into play. Your reconciliation declaration is a far more detailed report that indicates how much each employee has contributed towards the various deductions.

PAYE submission dates

  • Your monthly EMP201s need to be submitted by the seventh of the following month or the Friday before if the seventh falls on a weekend or public holiday.
  • Your interim EMP501 reconciliations for the period, 1 March to 31 August, are submitted between 1 September and 31 October.
  • Your final annual EMP501 reconciliations for the period, 1 March to 28/29 February, are submitted between 1 April and 31 May.

Unless you’re an accountant, it’s wise to seek help from a professional to understand your tax obligations.

If you need help with your EMP 201s or EMP501 reconciliations, let's talk.

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