---
title: "EMP501"
space: "SA Practitioner Guide"
url: "https://wiki.cohenix.cloud/sa-guide/full-suite-statutory-submissions/emp501"
updated: "2026-08-17"
---

# EMP501 Annual Reconciliation

The **EMP501 Reconciliation** ties together the year's monthly EMP201 declarations and the employee IRP5 certificates, proving that what was declared, what was paid, and what the certificates show all agree.

## When

At the SARS reconciliation periods — the interim reconciliation (covering 1 March to 31 August) and the annual reconciliation (covering the full tax year to end February).

## Prerequisites

- All EMP201 working papers in the selected period are complete: six for interim, twelve for annual.
- **IRP5 / IT3(a) certificates** generated for every employee paid in the year.
- Company **PAYE, UIF and SDL reference numbers** captured.

## Step-by-step

1. **Create the reconciliation.** Go to **EMP501 Reconciliation → New**. Set the **Company** and the **tax year / period** (e.g. 1 March 2026 – 28 February 2027).

2. **Link the EMP201s.** Add the monthly EMP201 references; the PAYE/UIF/SDL totals are pulled from each month.

3. **Link the IRP5s.** Add the IRP5 certificate references for each employee; their annual totals are pulled in.

4. **Run the readiness checks.** The reconciliation validates that:
   - Employer references (PAYE/UIF/SDL) are present.
   - All months of EMP201 are covered and submitted.
   - Every employee has a linked IRP5 certificate.
   - SARS code mappings are complete (no missing codes).
   - Directive numbers exist for employees with lump sums.
   - Each certificate's internal totals are consistent.

5. **Reconcile.** The three legs must agree: **sum of monthly EMP201 PAYE = sum of IRP5 PAYE = PAYE actually paid to SARS**. Resolve any differences (a late amendment, a missing month, a mis-coded component) before submitting.

6. **Submit the internal working paper, then file externally.** Internal submission does not file with SARS. ZA Local does not produce the SARS BRS payroll CSV or encrypted reconciliation file. Capture/import through approved SARS tooling and retain the external receipt.

## If the readiness checks block submission

That is by design — the EMP501 will not submit while a check fails. Read the specific failure (missing month, unlinked IRP5, missing reference, missing directive) and fix the underlying record, then re-run.

## Audit trail

EMP501 Reconciliation has change tracking enabled. Keep the reconciliation, the period's EMP201 working papers, IRP5 set, external submission receipt and payment evidence together as the audit pack.

## Next

For terminations and lump sums that affect IRP5 and EMP501, see [Tax Directives & Final Settlements](directives-and-final-settlements).