PAYE recon – 202202

    The deadline to submit your PAYE recon, aslso known as the EMP501 is 31 May 2022. What is a PAYE recon? This is the process where the amount of PAYE deducted monthly and paid over to SARS is reconciled. This is to ensure that all the amounts deducted from employees is paid over to SARS. During this process, when the EMP501 is submitted, IRP5 certificates have to be issued for every employee. These certificates then have to be issued to every employee. What information does the IRP5 certificate need to contain? The certificate needs to contain all income the employee has received. This includes the salary, all other benefits and…

  • PAYE

    PAYE recons explained.

    Monthly PAYE returns The monthly PAYE return is called a EMP201. The following amounts are to completed on this return, namely PAYE, SDL and UIF. The amounts are the amounts that are deducted from employees’ salaries. The SARS PAYE tables can be seen here. A 10% penalty is raised by SARS for the late submission of this recon. SDL SDL, or skills development levy is payable when the company’s total payroll exceeds R500 000 per annum. The amount to be contributed is 1% of the employees salary. This amount is contributed by the employer and not deducted from the salary. UIF UIF is dedcuted at 1% from the employees salary.…

  • emp501

    EMP501 – PAYE recon

    The deadline to submit the first PAYE recons for the 2021 financial year is 31 October 2020. The EMP501 is where employers have to reconcile the employee tax they deducted from employees to the amounts that were paid over to SARS. With this PAYE recon, IRP5’s are generated, but not handed over to the employees. Contact us for more information.