Pretoria - The South African Revenue Service (SARS) has reminded employers to submit their 2016 Annual Employer Reconciliations (EMP501’s) for the period 1 March 2015, to 29 February 2016, to SARS, by 31 May 2016.
“It is important that Employers submit their annual reconciliations not later than the 31 May 2016 deadline in order for SARS to pre-populate the 2016 Employees Income Tax Certificate [IRP5/IT3(a)] detail in the personal Income Tax Returns (ITR12’s) of taxpayers,” SARS said in a statement on Monday.
SARS has urged employers to accurately verify and update each employee’s personal details and reflect the correct personal and financial details on the IRP5/IT3(a)’s before submitting it with their EMP501’s to SARS.
“This requirement is important as taxpayers will no longer be allowed to make any corrections to pre-populated IRP5/IT3(a) financial details on their ITR12‘s when completing and submitting it from 1 July.
“In cases where details are incorrect, employees will have to revert to their respective employers who will need to make changes on the IRP5/IT3 (a) and re-submit these to SARS,” said SARS.
The process can be time consuming and it may become problematic for employees to file a correct ITR12 on time.
There are three elements on the EMP501 that must reconcile for the reconciliation submission to be successful. They include:
- Monthly Employer Declarations (EMP201s) reflecting your monthly PAYE, SDL, UIF and ETI (where applicable);
- Payments made and allocated (excluding penalty and interest payment allocations); and
- IRP5/IT3 (a)’s – value of PAYE, SDL, UIF and ETI (where applicable).
EMP501 reconciliations can be submitted via eFiling, which is available to employers submitting up to 20 IRP5/IT3(a)’s or via e@syfile™ Employer (any number of certificates). – SAnews.gov.za
