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Thread: EMP 501 certificates

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    EMP 501 certificates

    Good day

    I need to know how other people do this.
    When I generate certificates - I have a company who employed people from the beginning of the year, but only registered at SARS in January.
    On my certificates, do I complete the full amount of salary earned for the full year? or only for the 2 months that the entity was registered at SARS as an employer?

    The first 10months they were registered at department of labor and only paid UIF direclty to them

    1) If I fill in the full 12 months salary and UIF - My certificates do not recon to my liability to SARS?
    2) If I fill in only the months the income and PAYE and UIF for Jan and Feb when registered at SARS . Salary is under declared?

    Please I disagree with the opinion received from SARS today, but need to know how other people do this.

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Business1 View Post
    On my certificates, do I complete the full amount of salary earned for the full year? or only for the 2 months that the entity was registered at SARS as an employer?

    The first 10months they were registered at department of labor and only paid UIF direclty to them

    1) If I fill in the full 12 months salary and UIF - My certificates do not recon to my liability to SARS?
    2) If I fill in only the months the income and PAYE and UIF for Jan and Feb when registered at SARS . Salary is under declared?
    I suggest the correct approach is option 1.

    In the EMP501 return you can give a reason for the reconciliation difference. In your case the cause is legitimate - the payment of direct UIF contributions directly to UIF. Giving the explanation in similar fashion to your explanation here should be the end of the matter.
    The trouble with opportunity is it normally comes dressed up as work.

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    Quote Originally Posted by Dave A View Post
    I suggest the correct approach is option 1.

    In the EMP501 return you can give a reason for the reconciliation difference. In your case the cause is legitimate - the payment of direct UIF contributions directly to UIF. Giving the explanation in similar fashion to your explanation here should be the end of the matter.


    Thanks, so I will keep on objecting then.

    SARS told me that I should have only put on the certificates the amount that is declared to SARS.
    Since I would get the issue I am in right now.

    They assessed me for the difference and when I objected their solution was I should go to Department of labor ask my money back and then pay it to SARS.
    (And they added the penalties and interest will remain since I paid late to SARS????)

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    Site Caretaker Dave A's Avatar
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    Just to point out I'm certainly not the deciding voice on the correct approach to this dilemma...

    So SARS effectively reckon you should only issue an IT3a or IRP5 for the two months you submitted an EMP201?
    That would seem to introduce potential for problems too, frankly.

    Perhaps this is the right time to ask a related question I'd quietly pondered quite recently too. If an employer does not employ any staff that earn over the PAYE threshold, do they still have to register for PAYE so that they can issue IT3a's at the end of the financial year?
    The trouble with opportunity is it normally comes dressed up as work.

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    Hi Dave

    According to law; Sec 15(1) of the 4th Schedule of the Income Tax Act, an employer must register with the South African Revenue Service (SARS) within 21 business days after becoming an employer, unless none of the employees are liable for normal tax.

    So, i would say the answer is no, but I understand the dilemma.

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    Dave A (09-Aug-18)

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