The EMP501 reconciliation is where an employer proves that what it declared to SARS each month adds up to what it reported on its employees' certificates. It is submitted twice in a tax year.
What it means
Two reconciliations are required: an interim one covering the first six months of the tax year (often called H1), and an annual one covering the full year (H2). Each must show that the total PAYE, UIF and SDL on the monthly EMP201s equals the totals across all the IRP5 and IT3(a) certificates. Differences must be found and corrected before submission.
Where it fits in
The reconciliation pulls together the year's EMP201 declarations, the payments made, and the certificate totals, and is usually prepared and validated in e@syFile before being submitted to SARS. A clean reconciliation is what closes the tax year for the employer.
Key rules
- Reconciles EMP201 declarations to the IRP5 and IT3(a) certificates.
- Submitted twice: interim (six months, H1) and annual (full year, H2).
- Declarations, payments and certificates must all agree.
- Usually prepared and validated in e@syFile before submission.
