The deadline for the Employer Annual Reconciliation (EMP501) is approaching, and GZ & Co. urges all employers to finalise and submit before the end of May to avoid penalties.
What Must Be Submitted
The EMP501 reconciles, for the full tax year:
- Monthly EMP201 declarations,
- Actual PAYE, UIF and SDL payments made to SARS, and
- The IRP5/IT3(a) tax certificates issued to employees.
All three must align. Discrepancies are the most common cause of rejected submissions and follow-up queries.
Penalties for Getting It Wrong
Late or incorrect submissions can attract administrative penalties of up to 10% of the annual PAYE liability, along with interest on underpayments.
What You Should Do
- Validate employee data — ID numbers, tax numbers and income codes — before filing.
- Reconcile all payments and correct any mismatches.
- Issue finalised IRP5 certificates to employees so they are ready for the 2026 individual filing season.
Getting your reconciliation right now sets your employees up for a smooth tax season in July.
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.
