• The South African Revenue Service (SARS) has set a deadline of May 31, 2023, for employers to comply with their legal obligations for the annual Employers Filing Season. Non-compliance could lead to penalties, interest, and potential criminal charges.
• Employers are required to submit accurate and verified data, including their Employer Annual Reconciliation Declarations and Pay-As-You-Earn payments. This data is crucial for SARS to correctly pre-populate income tax returns and auto-assess taxpayers.
• SARS encourages employers, tax practitioners, and payroll administrators to use the Employers e@syFile online platform for electronic submission of their EMP501. This is part of SARS’s objective to streamline and simplify the tax compliance process.

The South African Revenue Service (SARS) has issued a stern reminder to all employers, urging them to comply with their legal obligations regarding the annual Employers Filing Season. The deadline for compliance is set for May 31, 2023, and failure to meet this deadline could result in penalties, interest, and potential criminal charges.

Employers are required to submit their Employer Annual Reconciliation Declarations (EMP501) to SARS. This also includes outstanding monthly declarations (EMP201) and previous years’ annual reconciliations (EMP501).

The Pay-As-You-Earn (PAYE) payments must be current, and the data provided to SARS via the IRP5/IT3(a) forms must be verified and accurate. The accuracy of this data is crucial as it allows SARS to pre-populate income tax returns and auto-assess the identified taxpayers correctly. This data also plays a significant role in enabling taxpayers to file a return with the correct information during the individual filing season, which commences in July 2023.

SARS has also requested employees to verify the accuracy of their details on the IRP5/IT3(a) forms. Third-party data suppliers, including medical aid schemes and banks, are also required to submit verified and accurate information to SARS and their clients.

These requirements are part of SARS’s broader objective to streamline and simplify the tax compliance process for taxpayers.

To facilitate this process, employers, tax practitioners, and payroll administrators are encouraged to download the latest version of Employers e@syFile. This online platform allows employers to submit their EMP501 electronically. SARS is also encouraging small, medium, and micro enterprises (SMMEs) to transition from manual to automated payroll systems using this platform.

For more information on the Employers Filing Season, employers are advised to visit the SARS website at www.sars.gov.za.