New 2022 Annual Reconciliation Season

The 2022 Annual Reconciliation Season will commence on 1 April 2022 and end on 31 May 2022. All employers are required to submit their annual reconciliation declarations covering the full tax year from 1 March 2021 to 28 February 2022. The EMP501 must reflect accurate and up-to-date payroll information about your employees, employees’ tax (PAYE) payments made and tax certificates (IRP5/IT3(a)s) generated.

It is imperative for employers to file accurate and complete EMP501s as SARS uses the information received through the submission of an EMP501 to pre-populate the tax returns of employees. This information is also used to populate the information reflected on all auto-assessments — Incomplete or inaccurate information will negatively affect the employees’ ability to meet their tax obligations.

Reminder: Delays in the finalisation of VAT verifications

During the Gauteng Sorith regional meeting held on 18 March 2022, it was reported that there is currently a significant backlog in the finalisation of VAT verification cases in the region. As a result, refunds are delayed beyond 21-business days.

SARS confirmed that the compliance auditors within the region are won king overtime and additional SARS regions are assisting to reduce the backlog experienced in the Gauteng South region. Recognised controlling bodies (RCBs) were requested to escalate long outstanding cases to the regional contact person.