FAQ for Interim Employer Reconciliation submissions for 2025/2026

Review the frequently asked questions related to the Interim (mid-year) Employer Reconciliation Submissions for 2025/2026 on Sage Payroll Professional.

1. When does the Interim Employer Reconciliation for the 2025/2026 filing season start?

We expect submissions to open around mid-September 2025 and close by the end of October 2025. The 2025/2026 filing season covers the six months from 1 March to 31 August 2025.

The expected start date is Monday 22 September 2025.

 

2. What is the deadline to submit my reconciliation to the South African Revenue Service (SARS)?

For the 2025/2026 Interim Employer Reconciliation (EMP501), which covers the period 1 March 2025 to 31 August 2025, the submission window will follow SARS’s standard timeline.

The closing date for submission is Friday 31 October 2025.

 

3. Is it mandatory for employers to submit their Interim Employer Reconciliation to SARS?

Yes, as non-submission can result in administrative penalties, interest and compliance risks with SARS.

 

4. How can I submit my Interim EMP501 Reconciliation to SARS?

You can complete your submission on one of the following channels:

• SARS e@syFile™ Employer
  • All employers can submit using this channel
  • This is the recommended submission channel for Sage VIP
  • Download and install the latest version of e@syFile™ Employer from the SARS website
• SARS eFiling
  • This channel is for employers with 50 or less certificates
  • Log in to your SARS eFiling profile

 NOTE: Sage tests creating and importing submission files on SARS e@syFile™ Employer only. There isn't any testing platform available for eFiling submissions. 

For more information, review the SARS Guide to the Employer Reconciliation Process.

 

5. Which version of Sage software must I be on to submit my reconciliation to SARS?

The compatible software version for the 2025/2026 Interim Employer Reconciliation is Release 6.5a.

We’ll release the software update in mid-September 2025 on the Sage Portal. This update will align your payroll with the latest specification from SARS.

 TIP: Only generate your live submission file from your payroll when you are on the new version. 

 

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

The 2025/2026 Business Requirement Specification (BRS) is available on the SARS website. Our Release 6.5a software includes the same source codes and validations rules.

 

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

Employers can complete their declarations on SARS e@syFile™ Employer or eFiling. Download the SARS guide to the Employer Reconciliation process from the SARS website.

8. Is it mandatory to have an income tax reference number for all employees?

As from the 2025/2026 tax year certificates need tax income reference numbers in the following conditions:

• The employees receive an IRP5 certificate with PAYE on source code 4102
• The employees receive an IT3(a) certificate where and the non-contribution code source code isn't:
  • 02 (Earnings less than the tax threshold)
  • 04 (all income is non taxable earnings (including nil directive)

You can't create or submit your tax certificates if you have any outstanding tax reference numbers. 

Export you records without tax numbers to using the IRP/IT3a report to import into e@syFile™ Employer.

The following documents provide steps to apply for tax numbers on either eFiling or e@syFile™ Employer:

• Tax Reference Number (TRN) Enquiry of eFiling
• e@syFile™ Employer guide

9. When do I need to give tax certificates to my employees?

The Interim Employer Reconciliation submission isn’t a final tax certificate submission. Your Sage and the SARS software won't create any certificates for distribution.

 

10. How long do I keep the submission-related documentation for my employees?

The Tax Administration Act includes the time period for employers to the keep the submission records of their employees.

You need to keep the documents for at least five years from the date of submission of their returns.

 

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

Read more about the refund process for ETI on the SARS website. 

 NOTE: You can't carry forward ETI refund amounts for the first 6 months to September. 

 

12. Where can I get help with the Interim Employer Reconciliation process?

There are different steps in the submission process. Review the guidelines on who can help you with each step.

We offer the following resources to help you with the submission process:

• Mid-year Centre for Employer Interim Reconciliation Submission
• Sage Knowledgebase
• Sage Community Hub discussion forum
• Live chat
• Submit your case online

 TIP: We recommend that you contact your accredited Sage Business Partner if you need help with your reconciliation and submission. 

 

13. Where can you find guidelines to assist me with the reconciliation and submission process?

Our Mid-year Centre page on Community Hub offers all the resources to complete your reconciliation and submission process. Click here to access the Mid-year Centre.

 

14. If there are differences on the EMP501 Reconciliation report, how do I find and fix them?

When you have differences on the EMP501 Reconciliation report, you will need to investigate the reasons for the differences before submission.

Print the following reports to investigate the differences:

• 12-Month History report or Period Analysis report
• History Screen report
• ETI History report
• Audit Trail report
• Log File report

If you need help with this process, contact your accredited Business Partner consultant.

 

15. Why do I have differences every month on my payroll EMP501 reconciliation report?

Possible reasons for the differences:

• Transfers of employees between companies with different PAYE numbers
• History Screen changes
• Changes on records after your closed the payroll
• Recalculations done after payroll close

If you need assistance to find the cause, you can book a consultation with an accredited Sage Business Partner.