South African employers are required to submit their EMP501 Interim Reconciliation for the first 6 months of the tax year, to the South African Revenue Service (SARS). 

Details of the reconciliation period has not been confirmed yet, but the submission period usually runs from September until the end of October. Click here to view the PAYE page on the SARS website, for more details.

Here are a few tips shared by our experts to assist you during August, to prepare your payroll for the submission:

• Your current payroll version must be on Release 6.0a or 6.0b to be compatible with the Release 6.1a update (to be released during September 2023, once SARS released final test e@syFile software). Click here to view details of latest software versions.
• Validate your company information on the Basic Company Information Screen of each company - all reference numbers and submission details must be correct
• Ensure the company date information of your company is correct - we recommend that you validate the dates of your system on the Period Info screen available on the Basic Company Information screen, where you will be able to confirm the processing period, tax year start and end dates, pay period in tax year, weeks in month etc.
• Ensure that all earnings and deductions/company contributions definitions are setup correctly - taxability and IRP5 codes play a vital role on your payroll calculations and reporting
• Validate your employee information is updated and correct - SARS requires employers to provide the correct contact and bank details, as well as be registered for a tax number
• Reconcile ETI values claimed. ETI not utilised cannot be carried forward from August to September. The EMP501 History Report will assist you to reconcile the monthly values, and the ETI Validation Report (Real Number 767 on Reports and Maintenance menu) can be printed each month. The ETI Validation Tool can also be used to review ETI information. Click here for more details on this tool
• Print the Negative YTD Audit report (which also runs during Start of Period process) and ensure you do not have any negative values per IRP5 code - the tax certificate specification does not allow negatives values, and will need to be corrected within the payroll, prior to September 2023. Click here to view a guide on this valuable report
• Print the Reimburisve Travel History report to identify exceptions. Click here to read more on running this report
• You can print the IRP5/IT3a Validation report to identify issues and do corrections where necessary. Click here for more details to print the report
• Generate the EMP501 Reconciliation History report on a monthly basis and reconcile with declarations and payments on eFiling. This makes it easier to identify any irregularities or issues that might have changed your payroll values. Click here for more details

Take note: You will not be required to make a copy system as you do during Tax Year-end - the reports and export files can be generated from the live payroll companies.

Should you require any assistance with your preparation or need assistance with your submissions, please contact your Business Partner consultant or click here to book a consultation.

Do you have tips or processes that makes your submissions hassle-free? Share your tips here on Sage City!