What is the EMP501?
The EMP501 is the employer reconciliation declaration that registered employers in South Africa submit to the South African Revenue Service (SARS) twice a year. It reconciles three sets of figures for the period: the monthly EMP201 declarations, the payments made to SARS, and the IRP5 and IT3(a) tax certificates issued to employees, for PAYE, Unemployment Insurance Fund (UIF) contributions, the Skills Development Levy (SDL) and any Employment Tax Incentive (ETI) claimed.
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Schedule a strategy callInterim and annual reconciliations
The interim reconciliation covers the first six months of the tax year, 1 March to 31 August, and the annual reconciliation covers the whole year, 1 March to the end of February. SARS publishes the submission periods each year. For the 2027 tax year, the interim season runs from 21 September to 31 October 2026, and the annual season is planned for 1 April to 31 May 2027. The annual reconciliation for the 2026 tax year was due between 1 April and 31 May 2026.
How it is submitted
Employers submit through e@syFile Employer, which accepts any number of certificates, or through eFiling for up to 50 certificates. The three elements must balance for the submission to succeed, and SARS sends a letter when they do not. Incorrect certificates are cancelled with an EMP601, and reconciliations for earlier periods are adjusted with an EMP701. Copies of the declarations and supporting documents must be kept for five years.
Penalties
A late EMP501 attracts an administrative penalty of 1% of the employer’s annual PAYE for each month it is outstanding, up to 10%. Employers with unused ETI forfeit it if they do not submit, and wilfully or negligently failing to submit is a criminal offence, punishable by a fine or up to two years’ imprisonment. Any shortfall in monthly PAYE found during the reconciliation is attributed to the last month of the period and can attract penalties and interest.
The EMP501 when TopSource runs your payroll
When TopSource runs your payroll in South Africa, we reconcile the monthly EMP201 declarations, payments and tax certificates through the year and submit the interim and annual EMP501 in each SARS filing season.
Frequently asked questions
When is the EMP501 due?
Twice a year, in the filing seasons SARS publishes. For the 2027 tax year, the interim reconciliation is due between 21 September and 31 October 2026, and the annual one is planned for 1 April to 31 May 2027.
What is the penalty for a late EMP501?
1% of the employer’s annual PAYE for each month the reconciliation is outstanding, up to a maximum of 10%.
What has to balance in the EMP501?
The monthly EMP201 declarations, the payments made to SARS and the IRP5 and IT3(a) certificates issued for the period.
Related terms in South Africa
- Temporary Employment Services (South Africa)
- Section 198B Fixed-Term Rule (South Africa)
- BCEA Earnings Threshold (South Africa)
- Retrenchment (South Africa)
- Restraint of Trade (South Africa)
- Family Responsibility Leave (South Africa)
- Sick Leave Cycle (South Africa)
- Employment Equity Act Reporting (South Africa)
- B-BBEE Scorecard (South Africa)
- Critical Skills Work Visa (South Africa)
- POPIA and Employee Data (South Africa)
- EMP201 Monthly Return (South Africa)
- IRP5 and IT3(a) Certificates (South Africa)
- Tax Directive (South Africa)
- Fringe Benefits Tax (South Africa)
- Travel Allowance (South Africa)
- Retirement Fund Two-Pot System (South Africa)
- Employment Tax Incentive (South Africa)
- Medical Scheme Fees Tax Credit (South Africa)