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What Is an EMP501 Reconciliation?
Quick Answer What Is an EMP501 Reconciliation? The EMP501 is SARS’s employer reconciliation, submitted twice a year (interim and annual), matching your monthly EMP201 declarations against the IRP5 tax certificates issued to employees. If the two do not balance, SARS rejects the submission until they do. What this means in plain language The EMP501 is where payroll honesty gets tested: twelve months of EMP201 payments must equal the sum of all IRP5s issued. Differences mean someone was over- or under-taxed – and SARS wants to know which. The annual submission (covering March to February) is the big one, typically due around end of May; the interim covers March to August.…
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What Is an IRP5 Certificate?
Quick Answer What Is an IRP5 Certificate? An IRP5 is the annual tax certificate an employer issues to each employee, showing total earnings, PAYE, UIF and other deductions for the tax year. Employees use it to complete (or verify) their own SARS returns; employers generate it as part of the EMP501 reconciliation. What this means in plain language For employees, the IRP5 is the summary of your work year in SARS‘s language. For employers, it is the proof that what you deducted matches what you paid over. Most employees now find their IRP5 data pre-loaded on eFiling – because the employer’s EMP501 submitted it directly. If your eFiling return and…
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