A taxpayer submitted the EMP501 for 2015 and 2016 but did not include the Employment Tax Incentive (ETI) on the reconciliation as the taxpayer erroneously selected "Does the Reconciliation include ETI? NO.” This was a mistake as the taxpayer did claim th
Author: The Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
Where the business has claimed ETI monthly on the EMP201 and by mistake select NO on the EMP501 reconciliation, this selection of NO will result in all ETI to be reversed on the SARS account of the employer. In order to correct this, the client need to send an email to contactus@sars.gov.za to ask SARS to reinstate the ETI and then submit a revised EMP501 with the selection as YES for “ETI included”.