Essential Reports needed for Annual EMP501 Submission

Essential Reports needed for Annual EMP501 Submission

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What are the essential reports needed to generate for the Annual EMP501 Submission?

To ensure a smooth Annual EMP501 Submission (IRP5) for the period 1 April 2024 to 31 May 2024, it’s essential to have the “Essential Reports needed for Annual EMP501 Submission”.

These submissions generate employee tax certificates for the period 1 March – 29 Feb 2024.

A guide to the reports needed for the IRP5 submissions:

Note: The report examples and directions provided are specific to the Paymaster Payroll system.

Step 1:

Balancing EMP201 and EMP501 Reports: Key reports for EMP501 submission

To begin, generate the EMP201 Report and EMP201 Breakdown Report from Reports > Reports > Standard (Classic) > Legislative. Additionally, generate the EMP501 Report for the selected tax year.

Balancing EMP201 and EMP501 Reports

Step 2:

Identifying Discrepancies between EMP201 and EMP501: Key reports for EMP501 submission

Next, identify discrepancies between EMP201 and the consolidated EMP501 by generating the following reports: For ETI imbalances, navigate to Reports > Reports > Standard (Classic) > Legislative and generate the EMP501 ETI Breakdown Report and ETI Take On report. For Tax, UIF, & SDL imbalances, navigate to Reports > Reports > Standard > Payroll and generate the Component Variance Report and Payroll Reconciliation Report. For employee biographical information, navigate to Reports > Reports > Standard > HR and generate the Dynamic Employee Details and New Engagements and Terminations reports.

Identifying Discrepancies between EMP201 & EMP501

Step 3:

Generating Test and Live CSV Files: Key reports for EMP501 submission

Once EMP501 reconciles with monthly EMP201s, generate Test and Live CSV Files per frequency for the correct submission period. Navigate to Reports > Tax Certificate Run to generate the Test CSV File. Upon successful validation, export the Live CSV File accordingly.

Generating Test and Live CSV Files

These reports will streamline the EMP501 reconciliation process and ensure accurate submissions.

Check out our VIDEO on how to reconcile the submission on PAYROLL and EASYFILE. Click Here

How to reconcile the submission on Payroll

Need some assistance?

Read our article for the 8 Steps to Complete the EMP501Submission

Our support team is ready and waiting to help. Please reach out to our helpdesk at help@paymaster.co.za or 021 712 7333.

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EMP501 Reconciliation Prep: Five Must-Do Tasks

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As we step into April, employers are reminded of the upcoming annual EMP501 Reconciliation Submission period. This process, occurring twice a year, requires employers to reconcile their IRP5/IT3(a) tax certificates, EMP201/EMP501 statements, and actual payments to SARS using e@syFile software. The February EMP501 reconciliation will reconcile the values for the entire tax year of 1 March 2023 – 29 February 2024 and will generate tax certificates for all employees on eFiling.

Articles main 2024 – 2

Here are five key steps to ensure a smooth EMP501 Reconciliation process:

1. Check that all the employee details are accurate and complete

Please check that all the information required by the receiver of revenue is correct and complete for all employees. So you will want to draw a report from your payroll system listing the following:

a)      Address of the employee

b)      Banking details of the employee

c)      Identity number or passport number

d)     Tax reference number

2. Reconciliations are done – payroll to tax paid

Reconcile all tax payments made to the receiver of revenue to the figures declared on the EMP201 form submitted to SARS. These must balance. If they do not balance you need to correct the issue as soon as possible, or make a note of why so that you can explain the differences on your annual submission. The best way to do this is to get the EMPSA from SARS. This shows the actual payments that they have recorded for the year. This can be compared with YTD totals from the payroll system. If they do not tie up then a correction can be made with the February EMP201. This means that the EMP501 reconciliation on Easyfile should not be a problem.

3. Confirm all submissions to SARS

Check to make sure that SARS have received all your EMP201 submissions and that there are no outstanding issues that need to be dealt with. It is always a good idea to keep up to date with SARS documentation.

Articles main 2024 – Keep up to date with SARS

4. Remind car holders to take mileage 1 March

Remind employees with company cars or car allowances to record their mileage from 1 March. Ensure company car details are accurately recorded in the payroll system.

5. Resolve any outstanding tax issues (retirement annuity numbers etc)

Make sure that all the earnings and deductions are listed under the right Payroll Codes (a list is available on the SARS website). In addition, make sure you have all the information for any retirement annuities you have been processing.

It is a useful exercise to run a ‘test IRP5 upload’ as this can show any oddities like negative 3601 income and negative non-retirement funding income which can be corrected in the February payroll. This also throws up incomplete addresses, business telephone numbers, retrenchment payments without directive numbers etc. These all have to be correct before Easyfile will accept the upload file.

For any assistance or queries, don’t hesitate to contact our Helpdesk at help@paymaster.co.za

Wishing you a smoothe and successful submission period!