EMP501: Payments pre-populated incorrectly

09 November 2022
Accounting
South African Accounting Academy

SARS has noted that the pre-population of the payment values on the EMP501 affects the Due by you / Due to you field on the EMP501 and the amount payable reflected on the EMP501 may be incorrect. However, after submission the employer can request a statement of account or use the PAYE Dashboard. According to SARS, the payments pre-populated on the EMP501 are ‘purely information for the employer’ and have no influence on the submission or processing of the reconciliation nor will they affect the employer’s account in any way. SARS further urges employers to submit the EMP501 reconciliations and ensure that the liability values and certificate information is correct and disregard the prepopulated payment information.

SAICA does not agree with the statement that the payments pre-populated are purely information for the employer. A self-assessment is the determination of tax payable by the taxpayer and submitting a return incorporates the determination of the tax. Therefore, if the SARS design/functionality of the form is resulting in an incorrect determination of the tax payable, we believe that this is something that needs to be investigated and resolved given that it has an impact on a legal obligation. We have engaged SARS in this regard and await feedback.

Click here to download the Tax Alert:

https://saicawebprstorage.blob.core.windows.net/uploads/resources/Tax-Alert-Payments-pre-populated-incorrectly-on-the-EMP501.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

The Tax Administration Act is yet another piece of legislation that your clients should consider, so that they are aware of their rights and responsibilities with specific references to SARS’ powers.
It is important to be aware of tax alerts that have issued by the regulators, e.g. SAICA
As an auditor, independent reviewer, accountant or tax practitioners you need to be aware of the ways in which SARS pre-populates payments in the EMP501.
As a taxpayer, you should be aware of the remedies available when these payments are pre-populated incorrectly.

Relevance to Your clients:

A taxpayer should be aware of the contents of the Tax Administration Act
As a taxpayer, you need to be aware of the ways in which SARS pre-populates payments in the EMP501
As a taxpayer, you should also be aware of the remedies available when these payments are pre-populated incorrectly.

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