The 2026/27 tax year began on 1 March 2026, and with the annual Employer Filing Season on the horizon, GZ & Co. reminds businesses to prepare their payroll reconciliations early.
Employer Annual Reconciliation (EMP501)
Employers must submit their annual reconciliation to SARS, reconciling the monthly EMP201 declarations, employee tax certificates (IRP5/IT3(a)) and actual payments for the full tax year. The submission window typically runs from April to the end of May.
Getting It Right
- Ensure every employee’s IRP5 reflects accurate income, deductions and PAYE.
- Reconcile PAYE, UIF and SDL figures against your payments to SARS.
- Distribute tax certificates to staff so they are ready for the individual filing season.
Why It Matters
Errors or late EMP501 submissions attract penalties and delay employees’ own tax filing. Accurate certificates are the foundation of the auto-assessment process that follows in July.
What You Should Do
Begin your reconciliation now rather than waiting for the deadline, and resolve any payroll discrepancies before submitting.
Source: South African Revenue Service, Employer Filing Season (sars.gov.za).
If you need assistance understanding how these developments affect you or your business, GZ & Co. is here to assist.
