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PAYE

EMP501 – Everything you need to know

If your company is registered for PAYE, you will have to submit a EMP501 recon. The deadline is 31 October 2019. The period cover by the recon is 1 March 2019 to 31 August 2019. The purpose of the recon, is to ensure that the PAYE, UIF and SDL deducted monthly, is correct and agrees with the amounts paid over to SARS. And providing reasons for any differences found. Because the taxes have to be paid to SARS monthly, a penalty is raised if the amount deducted is less than the amount paid to SARS. The EMP501 submitted in October is seen as the mid year recon. IRP5’s are not generated with this recon, but only with the second recon which is submitted in May 2020. The Eayfile software from SARS is used to submit the recon.

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