This serves as a reminder that your bi-annual Employer Reconciliation Declaration (EMP501 Reconciliation) is due for submission to SARS by no later than 31 May 2021. Late submissions will impose penalties (equal to 1% of the year's PAYE, for each month the return is outstanding, up to 10% of the year's PAYE).
Employers who correctly declared SDL payable for May – August 2020 as zero, due to the COVID-19 SDL holiday, must ensure that the values for these months are correctly excluded on the February 2021 EMP501 Reconciliation and/or 2021 IRP5/IT3(a) tax certificates submitted to SARS and issued to employees.
If the SDL levy has been included in the EMP501 for the 4-month period, the reconciliation process will automatically increase the SDL payable for February 2021, resulting in outstanding debt on the SDL account as well as late payment penalties and interest being charged.
It is important to submit accurate reconciliations – a SARS rejection can create an additional administrative burden for your company.
Should you require our assistance in this regard, please contact our Tax Department or contact your contact Partner at MGI Bass Gordon.