Professional EMP501 Reconciliations for Accurate SARS Reporting

EMP501 is a bi-annual SARS reconciliation summarizing PAYE, UIF, SDL, and employee tax certificates for the period.

It compares what was declared (EMP201) to what was paid.

All employers with PAYE, UIF, or SDL obligations.

Twice a year:

• Interim reconciliation (September)

• Final reconciliation (May)

• EMP201 submissions

• Payroll data

• Employee IRP5/IT3(a) information

• ETI records

• Payment proof

Accurate data ensures smooth SARS acceptance.

SARS may impose penalties and block Tax Clearance.

Employees may also be unable to file personal tax returns.

An IRP5 is an employee tax certificate reflecting annual income, deductions, and tax withheld.

ETI must match monthly submissions — incorrect claiming triggers audits.

Yes — through revised EMP501 submissions.

SARS will flag discrepancies, which may trigger audits or require manual correction.

No — only employers with active payroll.

Yes — incorrect EMP501 data affects IRP5s and can delay employee refunds.

Reasons include:

• Incorrect employee data

• ETI errors

• Missing EMP201 submissions

• Payroll mismatches

We correct all errors before submission.

EMP501 is submitted via SARS eFiling or SARS [EasyFile].

An IRP5 must still be generated for their employment period.

No — EMP501 must be submitted electronically.

To ensure PAYE declarations match payments and employee certificates.

Yes — incorrect or missing submissions block Tax Clearance.

3–10 working days depending on payroll size.

Yes — directors receive IRP5s like regular employees.

Yes — they must be included if they received taxable income.