The EMP501 is a bi-annual reconciliation which is submitted in October (ex: March 2021 to August 2021) and May (ex: September 2021 to February 2022). It is a reconciliation to match Payroll figures (IRP5’s) to the Monthly EMP201’s and both to agree to the Monthly payments made.

There are 2 ways of submitting:

1) Via E-Filing
Recommended for less than 10 employees.

2) EasyFile

a. A program, which can be downloaded from E-Filing’s home page or the SARS website.
b. Easy to use, but sometimes not all the needed software is downloaded. Quick fix normally.

For both of the above:

• A payroll file can be imported, although, with EasyFile, this process is a lot smoother.
• IRP5’s can be manually entered, if there is NO formal payroll system.

How to obtain the payroll file:

Every payroll system will have a specific file that can be imported into EasyFile. Can be a .txt file or a .csv file – System dependent.

For Pastel Payroll and Sage Payroll Online, you will find the options under Reports or Tax certificates.

For VIP -> History -> Reports.

Ensure the following is selected:

a. the correct year
b. Mid-year or Year end
c. Live submission

Resolve any issues.

For manual submissions:

Payroll systems would allow you to select tax codes. E-Filing does not provide a search option for tax codes, but can be searched for on SARS’s website. It is advised that only to a maximum of 10 employees be done manually on E-Filing.

Submission via EasyFile:

This section assumes that EasyFile has already been set-up.

• Open up the selected company.
• Firstly select Import/Export Payroll File and Pop-up will show. Select Import and search for the payroll file.
• Follow prompts.
• Nothing and no forms will open.

• Next, select Declaration, 2^nd the period and 3^rd “Request”.

• A pop-up menu will appear with 3 options:

1) Accept Data

a. A pop-menu requesting log in.
b. This is the same Log Ins for your E-Filing profile which was used to submit the EMP201’s.
c. The EMP501 form will open

2) Own Values

Two options :
i. Request SARS Data: same process as nr 1, above.
ii. Request own Values: you will have to enter figures manually.

• The EMP501 form will open:

Now for all the different columns:
– PAYE, UIF SDL pulls through from the EMP201’s you have submitted.
– Payments need to be added manually.

a. These MUST agree to what you paid.
b. EXCLUDE interest and penalties.

SHOULD YOU GET AN ERROR AFTER ENTERING YOUR E-FILING LOG IN DETAILS – ENSURE THAT THE EMP501 TAX TYPE HAS BEEN ACTIVATED ON E-FILING.

NOTE : THE BLOCKS 2ND FROM LAST (ENCIRCLED IN GREEN BELOW) SHOULD BE LEFT BLANK
FILLING ANY AMOUNT IN HERE, WILL INCREASE THE LIABILITY.

• Click on File.
• Next, go to “Submissions” (Left side menu) and click on “Submit”.
• Select the applicable form (Should only be one).
• Say Submit.
• EMP501 and IRP5’s will print.

And you are done!

Submission via E-Filing:

• Ensure that the EMP501 profile has been activated.
• Go to -> Returns (Top Menu) -> Returns Issued (left-side menu) -> EMP501.
• Right-hand side, select the period (if mid-year then “current year” -08”)

Example : If we are in 2021 and we are doing the 2022 mid-year submission (done in October), then we select 202108.

• Click on :” Request Return” and Open.

• Select EMP501 on the following page:

• Fill out the Contact person details:

• LEAVE Financial Particulars for now.
• Select “My Tax Certificates” -> “Add” -> Click anywhere on the GREY area.

• Input all the information until you get to the : ”Tax Certificate Information” – Section.

• Complete the ”Tax Certificate Information”.
• You will need to have codes for:

Income:
– Gross salary (3601).
– Annual lump sums (3605).
– Medical aid (3810).
– Logbook (3701).

Deductions:
– Employer medical aid contributions (4474).
– PAYE (4102).
– UIF {Employee portion + Employer portion} (4141).
– SDL (4142).

• After completing the above for ALL employees, go back to the top menus and select: “My Reconciliation Declaration”.
• Go to : ”Financial Particulars” – bottom drop down menu.
• Now for all the different columns:

– PAYE, UIF SDL pulls through from the EMP201’s you have submitted.
– Payments need to be added manually.

a. These MUST agree to what you paid.
b. EXCLUDE interest and penalties.

NOTE : THE BLOCKS 2ND FROM LAST (ENCIRCLED IN GREEN BELOW) SHOULD BE LEFT BLANK.

FILLING ANY AMOUNT IN HERE, WILL INCREASE THE LIABILITY.

• After entering all payments and providing a reason for any over/unders, you can click “SUBMIT” at the top of the form.

CONGRATULATIONS!!! YOU HAVE FINALISED YOUR EMP501 BI-ANNUAL RECONCILIATION!

– Salim Khan