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Tax year end 2025/2026 frequently asked questions

Created on  | Last modified on 

Summary

We answer the frequently asked questions related to the 2025/2026 tax year on Sage Payroll Professional.

Answers

Table of Contents

When will the SARS Annual Employer Reconciliation (EMP501) filing season for the 2025/2026 tax year start?

The filing season begins on 1 April 2026.

Confirm the submission dates on the SARS website.

NOTE:

If you submit your EMP501 reconciliation before filing season starts, your need to resubmit your declaration and certificates.

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

The deadline is 31 May 2026.

Confirm the submission dates on the SARS website.

CAUTION:

 Submit before the deadline to avoid administrative penalties charged by SARS.

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.

How can I submit my Annual Employer Reconciliation (EMP501 and certificates) to SARS?

The following channels are available for submission:

  • Employers with 50 or less employees: submit on either SARS eFiling or e@syFile™ Employer
  • Employers that file EMP501s for more than 50 employees must use e@syFile™ Employer

On which software version do I submit my EMP501 and tax certificates to SARS?

 You can confirm the payroll versions on the following article: Compatible software release version for tax year end

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

The 2025/2026 Business Requirement Specification is available on the SARS website.

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.

When do I need to give my employees their tax certificates?

Once SARS accepts your reconciliation and certificates submission, you can distribute them to your employees. Keep copies of the tax certificates and record that the employees received them. 

Follow these steps to upload the certificate to InfoSlips:

NOTE:

Currently there's no functionality to upload tax certificates to Sage Self Service.

How long do I need to keep my employees' documentation on file for audit purposes?

Employers need to keep records for five years from the date they submit the returns. This includes details of their employees' remuneration, tax-deductible deductions and income tax reference numbers.

Read more in the tax administration act. 

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

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.

What can the Sage support desk assist me with during the SARS submission (EMP501) process?

Read more to find out who assist with the different sections of the submission process.

Where can I find documents and tools to help with the reconciliation and submission process?

Visit the Community Hub Year-end Centre for all the documentation to assist you with the reconciliation and submission process. 

How do I create a Tax Year End instance system for submissions?

The system automatically creates a Tax Year End instance when you start the new tax year. The Instance includes all companies with a year ending in February. 

Once you're in the new tax year, you'll be able to access the Tax Year End instance.

How do I fix the differences between my EMP501 reconciliation and declared EMP201 forms?

If you notice discrepancies between your payroll monthly declared EMP201 and your EMP501 Reconciliation report, investigate the cause of the differences before submitting. Use the following reports to investigate the differences:

TIP:

The detailed monthly EMP201 reports allow you to compare PAYE, SDL, UIF and ETI values with the EMP501 report.

 

If I need assistance with my EMP501 Reconciliation, what options does Sage offer?

We recommend contacting your Business Partner for assistance investigating reconciliation differences. 

You have the following options to assist you:

What could cause differences between my EMP201 declarations and EMP501 reconciliation history report?

A few possible causes for differences:

  • Transfers of employees between payroll companies with different PAYE numbers
  • History Screen changes during the tax year
  • Changes to the company setup or employee payslips after payroll closed
  • Recalculations activated after the payroll was closed
  • Reports printed before the close of payroll

When you establish the cause, correct your declarations or the payroll amounts, to correct the issue. Take note of the impact of the changes.

Contact your Business Partner for assistance with the investigation and applying the corrections. Click here to book a consultation.

I get validation errors when I run my IRP5/IT3a report from my payroll. How do I solve these errors?

We have a dedicated page on the Community Hub Year-end Centre with links to all known validation errors, with their solutions. 

If you couldn't find the specific error, search on the knowledgebase for possible solutions.

I get validation errors when I import my IRP5 file into SARS e@syFile™ Employer/eFiling. How do I solve these errors?

We have a dedicated page on the Community Hub Year-end Centre with links to all known errors, with their solutions. 

If you couldn't find the specific error, search on the knowledgebase for possible solutions.

I received a 'Payroll Taxes Validation Failure" letter from SARS - what are the next steps?

SARS issues this notification when they find calculation errors on some certificates included in your submission. Review the details of the errors in SARS e@syFile™ Employer.

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 result in validation failure. 

 

  1. Log in to e@syFile™ Employer
  2. Select Reconciliations
  3. Click the  ... in the Actions column, then select ETV Report

SARS e@syFile Reconciliations screen.

For more details, visit the SARS website.

TIP:

 For any tax advice or compliance-related questions/queries, contact SARS or your tax practitioner.

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