Of TOTAL payroll.
Oct & May.
SARS mandated.
Must be issued.
Critical Problems We Solve
Effective financial management isn't just about balancing books; it's about removing the friction points that stall your business growth.
Massive penalties for non-submission (1% of liability)
Staff inability to file personal tax returns (no IRP5)
Blocked Tax Clearance due to payroll imbalances
ETI clawbacks from SARS audits
EasyFile technical errors (Java/Database issues)
The 1% Penalty Trap
The penalty for late EMP501 submission is draconian. It is calculated as 1% of your *total annual* PAYE liability for the year. This means for a mid-sized company, a single day's delay can cost tens of thousands of Rands.
We prioritize these submissions. We start the reconciliation process weeks before the deadline (31 May and 31 October) to ensure that any data issues are resolved long before the system gets overloaded on the final day.
- Avoidance of 1% liability penalty
- Early detection of data errors
- Stress-free deadline management
- Penalty remission applications
EasyFile: The Technical Hurdle
Submitting an EMP501 requires the use of SARS EasyFile, a piece of software notorious for its technical complexity, Java errors, and database corruptions. Many finance teams spend more time fighting the software than checking the figures.
We run a dedicated, updated EasyFile environment. We import your data, validate it against the latest SARS specification, and handle the encrypted submission. You don't need to install anything.
- Management of EasyFile software
- Validation of source code errors
- Database backup and security
- Java compatibility handling
ETI Reconciliation & Audit Defense
SARS's validation logic for Employment Tax Incentive (ETI) claims is strict. If a date of birth is missing or a period of employment is 1 day off, the claim is rejected and you owe money.
Our reconciliation process rebuilds your ETI claim from scratch. We prove the validity of every cent claimed. If SARS audits the refund, we have the working papers ready to defend it.
- ETI claim validation
- Data integrity checks
- Audit file preparation
- Clawback prevention
Who Is This For?
- All employers registered for PAYE
- Companies with disparities between payments and declarations
- Businesses issuing IRP5/IT3a certificates
- Employers needing Tax Clearance
Engagement Requirements
- EasyFile Database or Payroll Backup
- eFiling Login Credentials
- List of all payments made to SARS (SOA)
- Employee Income Tax Numbers
Deliverables & Results
- Submission of Interim EMP501 (due 31 October)
- Submission of Final EMP501 (due 31 May)
- Generation of IRP5/IT3a certificates for all employees
- Reconciliation of PAYE/SDL/UIF liabilities vs payments
- Correction of historical EMP201 errors
- ETI data validation and submission
South African Compliance Context
"Creations transformed how we handle SARS. No more compliance anxiety."
Trusted Resources
Our Operational Methodology
A structured, 5-step approach designed for precision and clarity.
We import your 6 or 12 months of payroll data into EasyFile and match it against your monthly EMP201s.
If there are differences (common with ETI claims), we correct the specific EMP201 periods.
We file the reconciliation via EasyFile and generate the tax certificates.
We provide you with the IRP5s to give to your staff for their personal tax returns.
Professional Insights
The EMP501 is the 'final exam' for your payroll department. If your monthly work (EMP201) was sloppy, the EMP501 will reveal it.
SARS often blocks Tax Clearance Certificates during filing season if your EMP501 is outstanding or if there is a 'cents difference' between your liability and payment.
Do not issue manual IRP5s. They must be generated through the SARS-validated system to pre-populate your employees' tax returns.
Common Questions
Everything you need to know about our emp501 reconciliations (bi-annual) service.