SARS Employer Reconciliation Guide

Employer reconciliation is a mandatory annual filing with SARS that reconciles PAYE, UIF, and SDL deductions for the tax year. Understanding reconciliation requirements, filing process, and deadlines helps you complete employer reconciliation successfully. This comprehensive guide covers everything you need to know about SARS employer reconciliation.

What Is Employer Reconciliation?

Understanding Reconciliation

Employer Reconciliation:

• Annual filing with SARS
• Reconciles PAYE, UIF, SDL deductions
• Confirms employee tax certificates (IRP5)
• Required for all employers
• Must be filed annually

Purpose:

• Verify tax deductions
• Confirm employee certificates
• Reconcile payments
• Ensure compliance
• Update employee records

Reconciliation Requirements

Who Must File

Required For:

• All employers registered for PAYE
• Employers with employees
• Employers deducting PAYE
• All registered employers

Filing Obligation:

• Annual requirement
• Cannot be skipped
• Must file on time
• Required for compliance

Filing Deadlines

Important Dates

Annual Deadline:

• Filing Period: 1 April to 31 May
• Tax Year End: 28/29 February
• Reconciliation Due: 31 May
• Late Filing: Penalties apply

Important:

• File by 31 May deadline
• Late filing incurs penalties
• Submit on time
• Avoid penalties

Reconciliation Process

Step-by-Step Process

Step 1: Prepare Information

• Employee information
• PAYE deductions
• UIF contributions
• SDL contributions
• IRP5 certificates

Step 2: Log in to SARS eFiling

• Access SARS eFiling
• Log in with credentials
• Navigate to reconciliation section
• Select tax year

Step 3: Complete Reconciliation

• Enter employee information
• Reconcile PAYE deductions
• Reconcile UIF contributions
• Reconcile SDL contributions
• Verify IRP5 certificates

Step 4: Submit Reconciliation

• Review information
• Verify accuracy
• Submit reconciliation
• Receive confirmation

Step 5: Issue IRP5 Certificates

• Issue IRP5 to employees
• Provide certificates by 31 May
• Keep copies for records
• Maintain employee records

IRP5 Certificates

Employee Tax Certificates

IRP5 Certificates:

• Employee tax certificates
• Show income and deductions
• Required for employee tax returns
• Must be issued annually
• Due by 31 May

Certificate Information:

• Employee income
• PAYE deducted
• UIF contributions
• Other deductions
• Tax information

Required Information

Reconciliation Data

Employee Information:

• Employee ID numbers
• Employee names
• Employment periods
• Income details

Deduction Information:

• PAYE deductions
• UIF contributions
• SDL contributions
• Other deductions

Payment Information:

• Payments made to SARS
• Payment dates
• Payment references
• Reconciliation amounts

Common Issues

Reconciliation Problems

Issue: Discrepancies

• Verify all information
• Check calculations
• Resolve discrepancies
• Correct errors
• Resubmit if needed

Issue: Missing Information

• Gather all required data
• Complete all fields
• Verify employee information
• Ensure accuracy

Issue: Late Filing

• File as soon as possible
• Pay late filing penalties
• Avoid further delays
• Contact SARS if needed

Tips for Reconciliation

Best Practices

1. Prepare Early: Gather information before deadline
2. Verify Information: Check all data accuracy
3. File on Time: Submit by 31 May deadline
4. Issue IRP5s: Provide certificates to employees
5. Keep Records: Maintain reconciliation records
6. Use eFiling: File online for convenience

Frequently Asked Questions

When is employer reconciliation due?

Employer reconciliation is due by 31 May each year, covering the tax year ending 28/29 February. File during April-May period.

What information do I need for reconciliation?

Required information includes: employee details, PAYE deductions, UIF contributions, SDL contributions, payment records, and IRP5 certificate information.

How do I file employer reconciliation?

Log in to SARS eFiling, navigate to reconciliation section, enter employee and deduction information, reconcile payments, submit reconciliation, and issue IRP5 certificates to employees.

What are IRP5 certificates?

IRP5 certificates are employee tax certificates showing income and deductions for the tax year. Employers must issue IRP5s to employees by 31 May each year.

What happens if I file late?

Late filing results in penalties. File by 31 May deadline to avoid penalties. If late, file as soon as possible and pay applicable penalties.

Conclusion

Employer reconciliation requires filing annual reconciliation with SARS by 31 May, reconciling PAYE, UIF, and SDL deductions, issuing IRP5 certificates to employees, and maintaining accurate records. Prepare information early, verify data accuracy, file on time through SARS eFiling, issue IRP5 certificates, and keep all reconciliation records. Understanding employer reconciliation helps you maintain SARS compliance and fulfill annual filing obligations as an employer in South Africa.