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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Articles main 2024 - Tax Year EMP501 guide 2024

1 March tax year-end filing: EMP501 guide

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The Annual EMP501 Reconciliation Submission period is from 1 April 2024 – 31 May 2024.

Employers are required, twice a year, to reconcile their IRP5 / IT3(a) tax certificates; the EMP201/EMP501 statements; and the actual payments made to SARS, by using the e@syFile software provided by SARS. 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.

Please note that the Paymaster’s csv file is only compatible with e@syFile and not eFiling.

1 March is the day

From 1 March, you will be rolling over into the new tax year. Most payroll systems now “lock down the old tax year” and you can no longer change any of that information. So sort out any issues before the tax year-end. You really don’t want to start having to open the payroll to change earnings or deductions or add information once 7 March has come. Remind all your employees who have company cars or car allowances to record their mileage first thing on 1 March. Make sure all the details of the vehicle are recorded on the payroll. They will need to upload their log book or make sure that the logbook is complete for the tax year.

8 Steps to Complete the EMP501Submission

How to reconcile

Reconciliation involves matching all tax due (liabilities) with all tax paid and checking these against the total value of all tax certificates issued. These three (3) amounts should all be equal. The reconciliation process only relates to the tax paid and not additional tax, penalties or interest.

Reconciliation steps for employers:

Step 1

Before completing the EMP501 (for interim and annual submission), determine the total income of each employee for that year, and recalculate the tax based on that amount. IRP5/IT3(a) certificates should reflect the income, deductions and tax as calculated at this point.

Step 2

If the recalculated liability according to the tax certificates is different to the EMP201s previously declared, it will need to be determined in which month(s) these differences occurred.

Step 3

Capture all the relevant demographic information in the Business Information and Contact Details sections.

Step 4

Capture all the monthly liabilities for PAYE (before ETI deduction), SDL and UIF using these revised figures in the Financial Particulars section on the EMP501 (i.e. where different, the liabilities inserted on the EMP501 should be the final calculated liabilities rather than the liabilities declared on the EMP201).

Step 5

Capture the total monthly payments made in respect of PAYE, SDL and UIF but excluding payments made in respect of interest and additional tax. These are the actual payments made to SARS throughout the year – no recalculations are needed.

Step 6

Calculate the totals and difference fields (If using e@syFile™ Employer simply click on the self-assess button in order to populate all the totals and difference fields for you).

Step 7

Employers must calculate the SDL and UIF totals and capture the values. If the SDL and UIF contributions are not on the certificates this value must be calculated and completed.

Step 8

When settling any shortfall reflected in the reconciliation, the payment must be allocated to the period(s) in which the shortfall occurred. If the relevant period cannot be determined, the payment should be allocated to the last active period within the transaction, which is August (interim) and February (annual).

Make sure to check out our helpful EMP501 submission video guide to assist you throughout the reconciliation process and ensure a smooth tax year submission.

We can handle the entire submission process on your behalf

We simply will require the following from you :

  • A breakdown of all of your PAYE, SDL and UIF payments per month between March 2023 and February 2024
  • Contact Paymaster for expert help.

If this feels to overwhelming, consider joining the many happy Paymaster clients. Contact our Helpdesk for additional information.

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