Tax compliance is necessary for SARS to fulfill its mandate of collecting revenue in South Africa.
Thus, employers must comply with their tax obligations during the Annual Employer Declaration period.
Note that all outstanding monthly returns (EMP201) and annual reconciliations (EMP501) must be submitted before the deadline of 31 May 2025.
Late submission, non-filing, or filing inaccurate EMP501 information may result in administrative penalties.
What You Need to Know
- The EMP501 declaration period is from 1 April to 31 May 2025.
- Submit the EMP501 with accurate EMP201 values (PAYE, SDL, UIF, ETI, payments), including accurate tax certificates (IRP5/IT3[a]).
- Exclude penalties and interest from the payment values.
- Submission Channels:
- Employers with more than 50 employees: use e@syFile™ Employer.
- Employers with 50 employees or fewer: use SARS eFiling or e@syFile™ Employer.
- Ensure that the EMP501 is filed correctly and rectify any rejected submissions to avoid penalties. After submission, view the PAYE Dashboard to ensure that the submitted and account values are as expected. Keep employee records for at least five years after tax returns have been submitted.
What is New?
SARS has launched e@syFile™ Employer – version 8.0. The platform was specifically redesigned to enhance your filing experience. Importantly, version 8.0 replaced all previous versions of the software on 1 March 2025.
Download version 8.0 from the e@syFile download page.
This release includes the following:
- A refreshed and user-friendly interface for easier navigation.
- Better system performance for faster processing.
- Stronger security features to protect employer data.
Minimum System Requirements
- Windows 10 (64 bit).
- 8 GB RAM.
- 2 GB hard drive space (for downloading and installation to C:/ drive; additional space will be required as employer data increases).
If your hardware does not comply with these minimum requirements, it is recommended that you upgrade your systems to ensure that the e@syFile Employer 8.0 application can be installed.
- Employers with 50 employees or fewer can still use eFiling to submit.
- Reconciliation information submitted on the previous e@syFile Employer must be imported to version 8.0. This will allow employers to make amendments if required.
- First-time login will require a user to add recovery details. This information will enable the user to recover the ADMIN password to enable access to the database created on the user’s personal computer if they have forgotten it. This password is for the user to recover the ADMIN password and does not relate to any employer information for which reconciliations will be done.
Importance of Accurate and Timely Filing
Accurate employer reconciliation enables SARS to automatically assess taxpayers and pre-populate Income Tax Returns (ITR12). Timely distribution of IRP5 and IT3(a) certificates is crucial for employees to file their ITR12s during tax season. Incomplete or late EMP501 submissions will incur a 1% penalty of the year’s PAYE liability, increasing monthly to up to 10%.
Criminal Offences
- Failure to submit EMP201 or EMP501 returns by the due date.
- Failure to issue IRP5 or IT3(a) certificates within specified periods.
- Failure to deduct/pay PAYE, SDL or UIF.
- Failure to pay the deducted PAYE, SDL or UIF to SARS.
The above may result in fines or imprisonment of up to two years.
Should you require more information, consult the e@syFile™ Employer User Guide or Step-by-Step Guide to the Employer Reconciliation Process on the Reconciliations page. You can also watch “How to submit an Employer Annual PAYE Reconciliation EMP501” on SARS TV.
SARS thanks all compliant employers for timely and accurate reconciliation, submission and payment. Your contribution plays a vital role in fostering the nation’s economic growth and development.
