Bi-Annual EMP501 Reconciliations - Due 31 May 2023

By BVK Group | 19 Apr 2023

SARS has made it clear that it will be taking a more stringent approach to enforcing compliance with tax regulations. In particular, it has signaled its intention to focus on the EMP501 return submissions by businesses. This means that businesses will need to ensure that they submit accurate and timely EMP501 returns to avoid penalties and other consequences for non-compliance.

As a business owner or employer, you are responsible for ensuring that you comply with all relevant tax legislation in South Africa. One of the important tax compliance obligations for employers is the submission of EMP501 returns to the South African Revenue Service (SARS).

The EMP501 return is a bi-annual submission to SARS, which summarises the amounts of Pay-As-You-Earn (PAYE), Skills Development Levy (SDL), and Unemployment Insurance Fund (UIF) that have been deducted from employees' salaries during the period. The return is due on 31 May and 31 October each year.

The purpose of the EMP501 return is to provide SARS with accurate information about the payroll taxes that have been paid by employers and to reconcile these amounts with the payroll taxes that were due for the period. This information is then used by SARS to ensure that employees are receiving the correct tax deductions and benefits, such as unemployment benefits and skills development programs.

To help businesses meet their EMP501 return obligations, it is highly recommended that they use the services of a professional service provider, such as BVK, who are experts in tax compliance and payroll processing. By using such services, businesses can ensure that they meet their obligations efficiently and effectively while avoiding costly mistakes and non-compliance penalties.