"SARS would like to thank those employers that have made every effort to file their reconciliations on time. However, we urge those employers who have not yet filed their reconciliations to make every effort to submit their reconciliation declarations immediately as penalties apply for late submission," said SARS.

An administrative penalty equal to 10 percent on the total PAYE can be imposed on employers.

"Employers should note that the non-submission of the reconciliations has a direct impact on the ability of their employees to file their income tax returns as individual taxpayers.

"Where employers do not submit their reconciliation declarations, employees will not be issued with IRP5 certificates and will not be able to submit an income tax return This makes the Tax Season for Employers such a vital step in our annual tax cycle," said SARS.

Tax Season for Individuals (non-provisional) will run from 1 July to 25 November 2011 for taxpayers who make use of the eFiling method. For taxpayers who still submit a manual/paper income tax return via post or a drop-box at a SARS branch, the deadline is 30 September 2011.