PAYE submissions can be daunting, and Enslins are here to help answer your questions! Remember, your business’ PAYE reconciliations need to be submitted before 31 May 2019.

1. As a small business owner, do you struggle to find the time to consolidate your PAYE documentation for the submission of the EMP501 reconciliation?

Enslins will be able to assist in calculating the payroll taxes, submitting the monthly EMP201 declarations and also submitting the EMP501 declaration, as well as employee IRP5/IT3 certificates, making it easier on the small business owner in knowing that his business’ payroll taxes have been submitted and that his employees will receive their IRP5/IT3 certificates before the deadline is reached.

2. Are you unsure about which documents need to be completed and on hand for submitting the EMP501 declaration and IRP5/IT3 certificates?

If an accountant should do the submission on behalf of the employer, the following information will be required:

  • The employer’s eFiling login and password details, if the accountant does not already submit the monthly EMP201 returns.
  • The login details will be needed in order to obtain the monthly EMP201 returns, the SOA, SARS or EMP201 statement of account and to submit the EMP501 declarations via eFiling or e@syFile.
  • The proof of payments for each of the EMP201 returns submitted for the year of assessment.
  • If a Payroll system is used, (e.g. VIP) the full system backup for the year of assessment is required.
  • If another program is used, (e.g. Excel) the document containing the monthly gross salary, deductions, benefits or any other income per employee will have to be provided.

This document should also contain all the details of the employees:

  • Full names and surname
  • ID number/ passport number
  • Income tax number
  • Residential address
  • Postal address
  • Banking details (remember to indicate whether the account is current or savings)

If the employer would like to complete the submissions themselves, the following will have to be taken into account and implemented:

*The same information as mentioned above will be required.

Employers need to submit their reconciliation by the date published in the Government Gazette.

For this reporting year (201902) information for the period of 1 March 2018 to 28 February 2019 must be submitted by 31 May 2019, and any subsequent period (201908) from 1 March 2019 to 31 August 2019 must be submitted by 31 October 2019.

Employers will have to download the e@syFile program here in order to complete their returns. The user manual is also available on the same link.

Before submitting the EMP501 declaration, the employer must confirm that the following prerequisites are met:

  • The sum of the EMP201 return’s PAYE, UIF and SDL for the year of assessment is the same as the monthly totals completed on the EMP501 declaration.
  • The monthly payments made according to the EMP201 returns are completed on the EMP501 declaration and correspond with the proof of payments. (Please take note that the payments completed may NOT include any penalties or interest which were paid to SARS for late submission/payment).
  • The sum of PAYE, UIF and SDL completed on the IRP5/IT3 employee certificates is the same as the sum of the monthly EMP201 returns submitted.

If all of the above is correctly completed and there are no discrepancies, the EMP501 can be submitted.

For confirmation that SARS successfully received the certificates and documentation, log on to eFiling and going to the Reconciliation status tab or the Dashboard tab under PAYE maintenance.

If, for some reason, there is an amount payable to SARS for PAYE/UIF or SDL that has been incorrectly completed on the EMP201 return and this was noticed while completing the EMP501 declaration and the IRP5/IT3 certificate, the payment reference and amount payable to SARS can be obtained from the Statement of account on eFiling under the SARS Correspondence tab. This should therefore be paid as soon as possible to avoid any further interest.

3. How can you be sure that the information you provide SARS with on your PAYE reconciliation is correct?

Before submitting the EMP501 declaration, the employer must confirm that the following prerequisites are met:

  • The sum of the EMP201 return’s PAYE, UIF and SDL for the year of assessment is the same as the monthly totals completed on the EMP501 declaration.
  • The monthly payments made according to the EMP201 returns are completed on the EMP501 declaration and correspond with the proof of payments. (Please take note that the payments completed may NOT include any penalties or interest which were paid to SARS for late submission/payment).
  • The sum of PAYE, UIF and SDL completed on the IRP5/IT3 employee certificates is the same as the sum of the monthly EMP201 returns submitted.

It is therefore advisable that the same person who does the payroll should also be responsible for the calculation of the deductions for the EMP201 returns, as well as the EMP501 declaration and IRP5/IT3 certificate.

For confirmation that SARS has successfully received the certificates and documentation, log on to eFiling and going to the Reconciliation status tab or the Dashboard tab under PAYE maintenance.

4. Who has to complete the EMP501 form?

Either employers or accountants can submit employees’ EMP501 returns.

There are a few details that need to be taken into account when completing the EMP501 declaration:

  • If the EMP501 profile is registered on the accountant’s eFiling profile, only the accountant will be able to submit the EMP501.
  • If the EMP201 returns are submitted on the employer’s eFiling profile but the EMP501 not, the same as above applies.
  • If the EMP201 and the EMP501 tax types are registered on the accountant’s profile, they will have to submit the EMP501.
  • If the EMP201 and the EMP501 tax types are registered on the employer’s profile but the accountant calculated the monthly PAYE, UIF and SDL for the employer, it would be advisable for the accountant to also submit the EMP501 declaration.

For more advice or information, please contact your nearest Enslins branch.