SARS 2024 Employer Filing Season closes end of May

As required by law, Employers must submit their Annual Reconciliation Declaration (EMP501) to SARS. The EMP501 must reflect accurate payroll information about all employees.

This must include employees’ tax (PAYE) which Employers pay on behalf of their personnel, and Tax Certificates (IRP5/IT3[a]) generated. Importantly, the EMP501 must cover the full tax year from 1 March 2023 to 29 February 2024.

On-time submission helps SARS to verify and process the tax information faster and more efficiently.

The Employer Filing Season is crucial for South Africa’s tax administration. This phase of the tax filing season enables SARS to pre-populate the Income Tax Returns (ITR12) of individual taxpayers and makes it easier to create automated assessments for them.

ITR12s allow employees who have not been auto-assessed to submit their own Income Tax returns.

Tips for Employer Filing Season

• Employers, Tax Practitioners, and Payroll Administrators should download the latest e@syFile version on SARS’s eFiling website. Employers must submit outstanding monthly declarations (EMP201) and bi-annual reconciliations (EMP501) to SARS before they submit the 2023 EMP501 reconciliation.
• Employers must use e@syFile to register employees for Income Tax using Single (“Individual ITREG”) and bundle IT Registration (“Bundled ITREG”) for existing tax numbers and new registrations.

Channels to Submit EMP501

Employers with 50 employees or fewer can either use either SARS eFiling or SARS e@syFile. Employers with more than 50 employees must use SARS e@syFile.

Penalties for Non-compliance

• An Employer who files an EMP501 reconciliation late will be penalised according to paragraph 14(6) of the Fourth Schedule to the Income Tax Act.
• The penalty will equal 1% of the year’s PAYE for each month that the return is late, up to 10% of the year’s PAYE.

• If SARS receives the EMP501 at any point during the ten months after the close of the Filing Season, the 1% incremental administrative penalty will stop.

 Submitting the Company Income Tax Return (ITR14)

The Income Tax Act requires all registered companies to complete and submit an Income Tax Return for Companies (ITR14) form once every year. Companies must use this form to truthfully declare all income received, expenses incurred, and deductions. SARS uses this information to calculate the company’s tax liability.

All companies must submit their tax return within 12 months after financial year-end. Importantly, any SARS debt must be paid online through SARS eFiling. To use eFiling, you must register as an individual and add your company under your profile. You can also view your statement of account and make payments through eFiling.

The administrative non-compliance penalty for the failure to submit a return comprises fixed-amount penalties based on a taxpayer’s taxable income, and can range from R250 up to R16 000 a month for each month that non-compliance continues. Administrative penalties recur each month that the taxpayer is non-compliant, up to a maximum of 35 months. Each recurring penalty will have a unique transaction number.

For more information and advice on how to complete your ITR14 form or how to use eFiling, watch our recorded webinars on YouTube (SARS TV) or visit our website.