Tax Year-end 2024/2025 Frequently Asked Questions

Tax Year-end 2024/2025 Frequently Asked Questions

1. When will the SARS Annual Employer Reconciliation (EMP501) filing season for the 2024/2025 tax year start?

The filing season is to begin on 1 April 2025, though it could change depending on SARS.

Confirm the submission dates on the SARS website.

2. When is the deadline to submit my EMP501 reconciliation to SARS?

The deadline is 31 May 2025.

Confirm the submission dates on the SARS website.

3. Is it mandatory to submit my Annual Employer Reconciliation (EMP501) to SARS?

Yes, all employers need to submit reconciliation and submission of the EMP501 return and tax certificates to SARS.

Submit your reconciliation during the filing season dates to avoid administrative penalties and interest.

 

4. How can I submit my SARS Annual Employer Reconciliation Submission (EMP501)?

You can submit via one of the following channels:

• Manual: complete the relevant tax certificates (50 certificates) and return the specified forms on SARS eFiling.  Submit the forms electronically to SARS or visit a SARS Branch for assistance.
• Electronic: Create a tax certificate file in the payroll system and upload it to SARS e@syFile™ Employer. 

For 50 or fewer IRP5/IT3(a) certificates, create a tax certificate file in the payroll system and upload it to SARS eFiling. 

5. What is the version of the Sage software I need to be on to submit my SARS Annual Employer Reconciliation Submission (EMP501)?

To submit your Annual Employer Reconciliation (EMP501) SARS return for the 2024/2025 tax year successfully, you must be on Release 25.1.3.0. 

Related article:

Validate the current software version.

 

6. Where can I find the specifications of the IRP5 submission file?

The 2024/2025 Business Requirement Specification is available on the SARS website, click here.

 

8. Where can I find more information on how to complete my declaration?

A step-by-step guide to the Employer Reconciliation Process is available on the SARS website, click here.

 

9. When can I provide my employees with their tax certificates?

Once you’ve submitted your reconciliation and certificates successfully to SARS, you can distribute the certificates to your employees.

TIP: We recommend that you keep copies of the tax certificates on file.

Related article:

• How do I upload my employee Tax Certificates to infoslips?
• How do I upload my employee Tax Certificate to WebSS?

 

10. How long do I need to keep the documentation for my employees?

Employers must keep records of payments, tax-deductible deductions, and Income Tax reference numbers for employees for five years from the date of return submission.

 NOTE: Employers audited by SARS need to keep the records for even longer periods. 

 

11. Where can I find more information regarding the Employment Tax Incentive (ETI) refund process?

Details on the refund process are available on the SARS website by clicking here.

 

12. Where can I search for self-help documentation to assist me with the reconciliation and submission process?

Articles to assist with the reconciliation and submission process are available on our dedicated Tax Year-end Centre page on the Sage Community Hub.

 

13. If you need assistance with reconciliation what options does Sage offer?

       You have the following options to assist you:

• Sage 300 People Tax-year end Resource Centre
• Training workshops
• Sage Knowledgebase
• Submit a case online

 

14. I finished my EMP501 reconciliation report, but I see differences every month. How can that happen?

Various reasons cause this issue:

• Transfers of employees between payroll companies with different PAYE numbers.
• History Screen changes.
• Changes to the company setup or employee records after finalising the payroll.
• Payroll recalculation activated after payroll is closed.

Once you’ve established the cause, correct the issue on your declaration or payroll application. Contact your Business Partner for further assistance with the investigation and applying the corrections. Click here to book a consultation.

 

15. What can I do if I receive a Payroll Taxes Validation Failure letter?

If SARS finds any errors, the employer will receive a “Payroll Taxes Validation Failure” letter.

 CAUTION: SARS performs a back-end test on the certificate submissions to validate the statutory liabilities based on the income declared. Tax adjustments on your payroll can result in validation failure. 

View more details in the new ETV field in e@syFile by selecting 'Download Employment Taxes Validation'. Click here for information.

 NOTE: Address any tax advice or compliance-related questions/queries to SARS or your Tax practitioner.