It’s that time of year again! The Annual Employer Reconciliation Declaration filing season is officially upon us. Submissions opened on 1 April and will close on 31 May 2023.  

What is employer annual reconciliation declaration?  

During this period, employers need to submit their annual reconciliation declarations (EMP501) that show the most up-to-date and accurate payroll information about their employees, monthly employer declarations (EMP201) for PAYE, UIF and SDL; payments made (excluding penalties and interest paid); and employee tax certificates (IRP5/IT3(a)s) generated, from 1 March 2022 to 28 February 2023. 

Why is it important to submit accurately and on time? 

By submitting your EMP501, you’re essentially telling SARS that you’ve paid the correct amount of tax for your employees and that everything is in order. Failing to submit your EMP501 on time can result in hefty penalties and interest charges.  

But it’s not just about avoiding penalties – submitting your EMP501 also ensures that your employees’ tax affairs are in order. If you don’t reconcile your employees’ tax certificates with the amounts that you’ve deducted and paid over to SARS, it could result in discrepancies in their tax records. This can lead to frustration for your employees, as well as a lot of extra work for you to rectify the situation. 

How do I submit my annual submissions? 

Based on your payroll information input your payroll software can automatically generate all the documents you need for your annual submission. You can also pre-validate your information to identify and correct any errors you might receive while completing your submission.  

Submissions can be made via eFiling should your employee count be less than 50, or e@syFile, if your employee count is 50 or more. Most payroll software systems support the latest versions of eFilling and e@asyFile which makes submissions a lot easier and faster.   

How do I avoid errors in my annual submission? 

Eliminating the need for manual data entry, can reduce the risk of data entry errors, and improve overall efficiency. 

Investing in a payroll software solution can help you streamline this process by automating tasks such as data entry, calculations, and reporting. One of the main benefits of using payroll software is the ability to ensure accuracy and compliance with regulations. The software can automatically calculate taxes, deductions, and other payroll-related expenses, reducing the potential for errors that could result in penalties or fines. 

The employer annual reconciliations can be a time-consuming and labour-intensive operation if not done correctly. With an automated payroll system such as Quick Payroll, this essential process can be easily accomplished, leaving companies more time to focus on the success and growth of their business.