Interim EMP501 Reconciliation Returns

By Dynamitech

The Employer Interim Reconciliation submission period is currently open until 31 October 2017 - these are Reconciliation Declaration (EMP501) and Employee Income Tax Certificates, IRP5/IT3 (a), for the six month period between 1 March 2017 and 31 August 2017.

What is an EMP501?

An employer needs to submit a reconciliation showing details of the total amount of Employees' Tax (Pay-As-You-Earn, or PAYE), Skills Development Levy (SDL), Unemployment Insurance Fund (UIF) and/or Employment Tax Incentive (ETI) deducted or withheld as well as the details of Employee Tax certificates, IRP5/IT3(a), issued during the tax year.

This year, a few changes have been made:

  • New Income Source Codes 3719/3769, 3720/3770 and/or 3721/3771
    • Certain dividends in respect of restricted equity instruments are considered to be remuneration from which employees’ tax is deductible. When the above-mentioned codes are imported into or captured on e@syFile™ Employer or eFiling, a directive number will be required. You should enter fifteen zeros (0 x 15) as the directive number on the IRP5/IT3(a)s with these income source codes.
  • Updated version of e@syFile™ Employer
    • The updated version of e@syFile™ Employer, version 6.8.0, should be used when filing your interim reconciliation and is available for download on It is very important that you back up the current information on your computer prior to installing a new version as the installation may delete your current information.
    • You can submit your Employer Reconciliation Declaration (EMP501) and Employees Income Tax Certificates, IRP5/IT3(a), online via e@syFile™ Employer, or if you have less than 50 employees, via eFiling.
Important to remember!

  • Payroll Tax (PAYE, SDL and UIF) compliance
    • To avoid penalties being levied make sure that you submit your declaration by no later than 31 October 2017.

  • Issuing interim IRP5/IT3(a) to employees
    • The interim IRP5/IT3(a) for the six month period 1 March to 31 August 2017 must not be issued to an employee unless it is a final certificate (where the employee has left the service of the employer or the employer ceased to be an employer on or before 31 August 2017).
Need any assistance?

Feel free to contact us for any further assistance, or help with your submissions.