SARS: Time is running out to prepare for interim PAYE reconciliations
SARS kicks off its interim PAYE reconciliation submission season on 1 September, which means you have only a few days left to prepare all mandatory information and update your business’ payroll system before your August payroll run. Here’s the low-down on what you need to do to get through the process with your sanity intact.
What must you submit to SARS?
- A six-month reconciliation of PAYE, UIF, SDL and ETI
- Your IRP5/IT3(a) tax certificates for the period 1 March 2014 to 31 August 2014
Update your payroll and the SARS software
SARS issues new validation rules before the start of each employer filing season. This means you must ensure that you are using the latest version of your payroll software and SARS [email protected] (a new version will be released on the eFiling website during the last week of August) to ensure your submissions pass the current validations.
New validation rules for the upcoming interim submissions include:
- New employee postal address fields
- Mandatory Standard Industry Classification codes for the company and its employees.
- New data fields for the Employee Tax Incentive.
- New source codes for taxable and non-taxable bursaries and scholarships for further education as well as for non-taxable fringe benefits for the acquisition of immovable property.
Also, do take note that the interest rate used to calculate fringe benefits increased to 6.75% from 1 August. If the interest you charge on a staff loan is less than 6.75%, then the difference in interest payable is a taxable fringe benefit for your employee.
No more manual submissions if you have five employees or more
As of 25 August this year, SARS will no longer accept manual submissions if you have more than five IRP5/IT3(a) tax certificates to submit. All EMP201, EMP501, IRP5/IT3(a), EMP601 and EMP701 forms must be submitted electronically via SARS [email protected] and eFiling from now on.
If you have been submitting your payroll taxes manually to date, you should do the following:
- Sign up for a SARS eFiling profile.
- Install the free SARS [email protected] software.
- Familiarise yourself with the process and requirements of submitting electronically by capturing your tax certificates and reconciliations manually on SARS [email protected] or by importing the data from your payroll software into SARS [email protected]
Sage Pastel Payroll & HR Tips
“Remember to use the EMP501 Reconciliation Report generated by your payroll software to complete your PAYE, SDL and UIF reconciliation declaration on SARS [email protected] This will save you lots of time and money over doing it manually”, says Madelein van der Watt, Development Manager, at Sage Pastel Payroll & HR.
“Sage Pastel Payroll & HR allows you to import a file containing the mandatory employee income tax reference numbers from SARS [email protected]” continues van der Watt. These income tax reference numbers would have been generated by SARS during or after the 2013/2014 PAYE filing season and returned to the SARS [email protected] application as part of the bulk registration process.
Latest SARS [email protected] Version
Download and install the latest SARS [email protected] Employer version in order to upload and submit your electronic IRP5/IT3(a) tax certificates and EMP501 Reconciliation Declaration for the period of 1 March 2014 to 31 August 2014. SARS will release their upgrade during the last week of August. Click here to download the latest [email protected] version.
For more information please visit the website from Sage Pastel Payroll & HR.
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