EMP501 ANNUAL RECONCILIATION FOR YE2016/02

EMP501 ANNUAL RECONCILIATION FOR YE2016/02

Opens 18 April 2016 and Closes 31 May 2016 

Requirements to complete EMP501 2016/02 return. 

COMPANY/EMPLOYER INFORMATION 

Can be taken off secretarial files. 

EMPLOYEE INFORMATION 

  • Employee Number (if there is not one we will generate one in numeric order)
  • Full names and surname
  • ID Number
  • Tax Number
  • Physical Address
  • Postal Address
  • Bank Details (this is a mandatory field)
  • Start date and/or termination date during the below period 

EMPLOYEE EARNINGS (March 2015 to February 2016) 

  • Year to Date Earnings
  • Type of Earnings
    • Directors Earnings
    • Employee Earnings
    • Commission
    • Overtime
    • Incentive
    • Other
  • Fringe Benefit
    • Medical Aid
    • Pension
    • Other
  • Deductions
    • PAYE
    • UIF
  • Company Costs
    • Any benefits paid by the Company
    • Skills Development Levy (if applicable) 

E-FILING 

  • Access to e-filing profile
    • Login name
    • Password 

This is to obtain the EMP statement of account for the year and the EMP201 returns that were filed. 

  • 1 April 2016 – Employer Annual Reconciliation
    Employers are required to submit their Pay-As-You-Earn (PAYE) employer Annual Reconciliations between 18 April 2016 and 31 May 2016 to SARS, confirming or correcting payroll tax amounts which were declared during the 2015/2016 tax period. 

This year, employers are urged to accurately verify and update each employee’s personal and financial details before submitting their Annual Reconciliation Declaration (EMP501) and Employees Income Tax Certificates (IRP5/IT3(a)s) to SARS. 

Should these details be incorrect on an IRP5 certificate, the employee will be unable to file his/her Income Tax Return for Individuals (IT12R) during Tax Season. Individuals will no longer be allowed to make any corrections to pre-populated IRP5 details on their returns. 

In cases where details are incorrect, employees will have to revert to their respective employers who will need to make changes on the IRP5 and re-submit these to SARS. This process can be time consuming and it may become problematic for the employees to file on time. 

Employers play a very important part in the income tax cycle which effectively starts on 18 April with the submission of the annual reconciliations.