Employer reconciliation refers to the submission of an accurate Employer Reconciliation Declaration (EMP501); Employee Tax Certificates [IRP5/IT3(a)s] to be issued and if applicable , a Tax Certificate Cancellation Declaration (EMP601).
The reconciliation submission should be made twice during a financial year for the:
- Interim period: which is for the six month period 1 March to 31 August
- Annual period: which is for the full year 1 March to 28/29 February
In order for your submission to be successful, there are a number of elements that should reconcile. Firstly, Monthly Employer Declarations (EMP201s) submitted [Pay-As-You-Earn (PAYE) and/or Skills Development Levy (SDL), Unemployment Insurance Fund (UIF) amounts due and Employment Tax Incentive (ETI), if applicable. Secondly, Payments made (excluding penalty and interest payments) and last but not least, IRP5/IT3(a)s generated – PAYE, SDL and UIF values.
It is important to remember that copies of all declarations submitted and related supporting documents must be kept for FIVE YEARS. How do I go about submitting? Well that is easy with DATC. Should you require any form of assistance with your submission please contact DATC today and we will be sure to meet all of your requirements.