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SARS: 2026 Employer Annual Reconciliation period
- 02 April 2026
- Tax
- South African Accounting Academy
Summary:
The Employer Annual Declaration (EMP501) submission period is now open from 1 April 2026 until 31 May 2026.
Article:
During this period, employers are required by law to submit their annual reconciliation declarations (EMP501) containing accurate, complete, and up‑to‑date employee payroll and tax information.
Importantly, these reconciliation declarations (EMP501) must include the latest and most accurate payroll information regarding their employees, and the tax they have deducted covering the full tax year from 1 March 2025 to 28 February 2026.
Before submitting your EMP501, submit any outstanding monthly declarations (EMP201) and annual reconciliations from prior periods (where applicable); settle any payments due. This helps reduce the risk of rejection, penalties, and interest charges.
Valid Income Tax Reference Numbers are mandatory for employer submissions. Employers should verify employee details early and register employees where required before submitting. Missing or invalid Income Tax Reference Numbers will prevent certificates from being captured or result in incomplete submissions, leading to delays and non‑compliance.
A major enforcement rule is now in effect for the 2026 filing season: SARS will no longer accept EMP501 submissions that are missing valid Income Tax Reference Numbers (TRNs) for any employee.
Your EMP501 submission must include:
- All prescribed employer declarations and
- Employee tax-certificate information for the relevant tax year.
Employers must issue employee tax certificates (IRP5/IT3[a]) accurately and timeously. Employees rely on these certificates to meet their own tax obligations.
The failure to issue tax certificates on time, or the submission of incomplete or incorrect reconciliation information, constitutes non‑compliance and may result in penalties, enforcement action, and downstream disruption of employees’ tax outcomes.
Click here to access more information:
https://www.sars.gov.za/types-of-tax/pay-as-you-earn/
Relevance to Auditors, Independent Reviewers & Accountants:
- The Income Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer, an accountant or tax practitioner, you need to be aware of the relevant deadlines to submit EMP501s.
- As an employer and taxpayer, you also need to comply with the Income Tax Act in your workplace to submit EP501s.
Relevance to Your clients:
- A taxpayer must comply with the Income Tax Act.
- Employers must comply with deadlines to submit their employer declarations (EMP501s).