SARS PAYE Business Requirement Specification (BRS) – PAYE Employer Reconciliation_V23-0-0

This document specifies the requirements for the generation of an import tax file for the yearly as well as the interim submission. The requirements as defined in this version of the BRS will become effective from 1 March 2024 for Payroll Suppliers until replaced by an updated version. The changes will be implemented on the SARS systems in September 2024

INTRODUCTION
As part of its drive for better service, SARS has been modernising tax processes since 2007. Changes introduced are a vital part of SARS’s long-term vision to have a more accurate reconciliation process. The more information at SARS’s disposal means a less cumbersome tax process, as returns/declarations are increasingly pre-populated.

The Employers Reconciliation Declaration (EMP501) has always been an important part of the year of assessment for employers, when submitting their annual reconciliations for the period 1 March to 28/29 February for Pay-As-You-Earn (PAYE), Skills Development Levy (SDL) and Unemployment Insurance Fund (UIF). While the annual reconciliation declaration will still be required for the full year of assessment ending February, the interim reconciliation has now become an integral part of the Employer Reconciliation.

The first Interim Reconciliation submission, for a six month period, took place from 1 September to 29 October 2010. During the Interim Reconciliation employers are required to submit accurate reconciliation declarations for the six month transaction period 1 March to 31 August, in respect of the Monthly Employer Declarations (EMP201) submitted, the payments made, and the interim Employee Income Tax Certificates [IRP5/IT3(a)] created, where applicable.

These submissions can be made via one of the following channels:
• Manual – complete the relevant tax certificates (max 50 certificates) and EMP501 return on the specified forms on eFiling, and submit electronically to SARS or visit a SARS Branch for assistance
• Electronic – Generate a tax certificate file from the payroll system and import this file into e@syFileTM Employer. Within e@syFileTM Employer, capture additional manual certificates, cancel certificates, capture EMP501 details, and submit to SARS via the eFiling online channel.
• If the employer has 50 or less IRP5/IT3(a) certificates, a tax certificate file can be generated from the payroll system and this file can be imported into eFiling. Any amendments to, or cancellation of, or capturing of certificates can be done in eFiling if the total number of certificates does not exceed 50.

The reconciliation and submission of the EMP501 return and tax certificates to SARS must take place within the dates announced from year to year as the employer’s filing season. Failure to do so may result in penalties and interest.

For information on the completion of manual certificates, please consult the guide s e@syFileTM Employer User Guide or A Step-by-Step Guide to the Employer Reconciliation Process on the SARS website.