SimplePay automatically generates the documents required to do bi-annual submissions to SARS from your finalised payslips. To access these documents, please go to Submissions > Bi-Annual Filing (IRP5s etc.).
*We suggest that you finalise your EMP201s for the filing period before continuing with your bi-annual filing.
The Employer Reconciliation Declaration (EMP501) contains the employer’s PAYE, UIF and SDL liability for all of their employees for the tax year / bi-annual filing period. It is effectively a summary of all of the EMP201s for the tax year / bi-annual filing period and, as with the EMP201, also contains information regarding ETI.
More information on the various EMP501 components can be found in the following sections:
An employee’s tax certificate contains a summary of all the income, deductions, benefits, contributions, etc pertaining to that employee for the tax year / bi-annual filing period, recorded under the relevant codes. As the system automatically assigns the correct tax codes to all items, it is advisable to use system items, wherever possible, instead of custom items in order to ensure the correct allocation of tax codes.
For more information on system items and custom items, please refer to the following sections:
Tax certificates must be completed for employees every six months – in February and August – and can take the form of either IRP5s (where the employee was liable for PAYE) or IT3(a)s (where the employee was not liable for PAYE).
Employers are only required to provide employees with tax certificates after the end of the tax year, i.e. 28 February, or when an employee has left the employer’s service.
Every 6 months, employers must reconcile the IRP5 / IT3(a) tax certificates, the EMP201 / EMP501 statements and the actual payments made with SARS. This can be done via the eFiling website or the [email protected] application and allows SARS to make an assessment in order to determine if the correct amounts of PAYE, UIF and SDL have been paid over during the year. Any tax determinations to be made by SARS on assessment are done at this point, and an employee may be entitled to a tax refund (if the employer over-deducted PAYE) or may have to pay over additional tax (if the employer under-deducted).
Please refer to the following article for a detailed explanation of bi-annual SARS PAYE submissions and reconciliations: