Ensuring no stones are left unturned - The EMP501 submission checklist

As the deadline for EMP501 submissions approaches, it’s time to gear up for one of the most crucial tasks of the year. Whether managing a large company, a small business, or a non-profit organisation, if registered for Pay-As-You-Earn (PAYE) with the South African Revenue Service (SARS), submitting an EMP501 reconciliation is mandatory. Missing the deadline or submitting incorrect information can lead to penalties, interest on unpaid amounts, or even a tax audit—none of which are pleasant experiences.

To help navigate this critical process, a handy checklist has been developed to ensure compliance:

Start Early: Begin reconciling payroll data well before the deadline. The last-minute rush is stressful and can lead to errors.

• Accurate Employee Information: Ensure that all employees’ identity numbers, tax reference numbers, and other relevant details are correct.
• Align Payroll Figures: It’s essential to make sure that PAYE, UIF (Unemployment Insurance Fund), and SDL (Skills Development Levy) figures match the amounts paid to SARS throughout the tax year.
• Review IRP5/IT3(a) Certificates: Take the time to verify that all employees’ IRP5/IT3(a) certificates are accurate and complete.
• Utilise SARS Tools: Make use of the SARS EasyFile Employer software or eFiling platform to help ensure submissions are accurate.
• Thorough Review: Oversights are common, so carefully review the EMP501 form before submission.
• Meet the Deadline: The cutoff date is 30 August. Missing this deadline can result in penalties, so make sure it’s met.
• Retain Records: Keep all EMP501-related documents and confirmation of submission on file. These records are essential in case SARS needs to be challenged on any issues.

Aligning payroll figures is crucial, especially when relying on manual input, where human error can easily occur. This is why many businesses are turning to software solutions that save time and reduce the risk of mistakes.

One of the biggest benefits of payroll and HR software is that it’s fully integrated, providing a single database for all payroll and HR data. This makes the SARS submission process much easier. Additionally, the automation streamlines reconciliation and includes tools to help avoid potential errors.