SARS has announced the Employer Interim Reconciliation period, running 22 September – 31 October 2025. During this time, employers must reconcile their EMP201 returns with payroll information for 1 March – 31 August 2025 and submit their EMP501 declarations via eFiling or e@syFile™ Employer.
A correct and complete EMP501 reflects:
- PAYE, UIF, and SDL values from your previously submitted EMP201 returns, which will prepopulate in the EMP501. Where these values differ from the interim IRP5/IT3(a) certificates generated, employers must amend the prepopulated figures to the correct amounts.
- Payments made during the period (excluding any penalties and interest); and
- Accurate payroll information together with the IRP5/IT3(a) tax certificates for the period 1 March 2025 to 31 August 2025.
Key Changes for 2025
- Software update: The e@syFile Thin Client is now the primary submission channel. The old “Flex” version is being phased out (only available for historic data enquiries).
- Update BRS to v24.0.2: New source codes, changed validation rules, and amendments to some source code descriptions. Employers and payroll administrators must review this to ensure compliance with latest requirements.
Income Tax numbers enforcement
From the February 2026 employer filing season, Income Tax numbers will be strictly enforced in e@syFile™ Employer. Employers will no longer be able to submit reconciliations without valid Income Tax numbers for all employees. Please refer to BRS – PAYE Employer Reconciliation for 2025 / 2026 for the latest rules.
Submission Guidelines
- ≤50 employees: Submit via eFiling or e@syFile™ Employer.
- ≥50 employees: Must use e@syFile™ Employer to file EMP501 declarations.
- ≤5 IRP5/IT3(a) certificates: Submission at a SARS Service Centre (appointment required).
Why Accuracy Matters
Submitting late or incorrect EMP501s can lead to:
- Penalties & interest for incorrect PAYE calculations.
Non-compliance consequences
Failure to comply with reconciliation requirements leads to consequences:
- 1% of your annual PAYE liability penalty for late filing. Increase by 1% for every month outstanding (up to 10%).
- Forfeiture of ETI for non-compliant employers.
- Criminal charges (up to 2 years’ imprisonment) for failing to submit EMP201 or EMP501 returns.
Final Tip
Check your submission status and the PAYE Dashboard after filing to confirm accuracy and compliance.
For more information, access the e@syFile™ Employer User Guide or the Step-by-Step Guide to the Employer Reconciliation Process.
For any queries, visit the SARS website or contact chenee.ladwig@pinionza.com
Disclaimer:
The information supplied herein should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact our office for specific and detailed advice. Any legal information presented is a precis of current legislation, is subject to change and should not be used as a substitute for detailed professional advice.
Copyright © 2025 Pinion South Africa. All rights reserved.