Friday is D-Day for SARS

Friday is D-Day for SARS

SHARE

The first step companies should take is to download the latest version of the e@syFile Employer system from the SARS website.

 Companies need to ensure that they provide SARS with their annual PAYE reconciliation submission before the end of May.

“It’s important that companies download and install this software before conducting their PAYE, SDL and UIF reconciliations to ensure accuracy and compliance with SARS requirements,” says Philip Meyer, technology director  at Sage Pastel Payroll & HR.

Penalties for missing information

While SARS will not reject tax certificates that do not have an income tax number, the e@syFile Employer system will issue the submitting company a message declaring that penalties can be raised on the employer as a result of the missing information.

Meyer stresses that employers must confirm that the company will comply with the SARS penalties procedure before their companies are able to continue with their reconciliation and submission.

“SARS has also increased employer penalties applying to employee tax certificates that do not have a registered tax number. So it makes financial sense for companies to ensure that they register all unregistered employees with SARS before they submit tax certificates for reconciliation.

“Even employees that are below the tax threshold need a registered tax number,” adds Meyer.

Getting a tax number for staff

Companies wanting to register employees for a tax reference number can either go into a SARS branch, or can log onto the e@syFile Employer system and load their employees manually.

 

Entrepreneur-Newsletters
Entrepreneur’s daily tips & insights delivered direct to your inbox.

To follow the verification status of the tax reference number, companies can use the ITReg functionality of the e@syFile Employer system and follow a synchronisation process to obtain a CSV file with their employees’ tax reference numbers.

“However, companies using an automated payroll software solution can obtain employee tax reference numbers via the Bulk ITREG functionality and the e@syFile Employer system to simplify the reconciliation.

“Those using automated payroll solutions need only capture employees’ information and their payslip details,” adds Meyer.

During the year end procedures, the electronic tax certificates are generated automatically in the IRP5.13 file. This file can be imported directly into the e@syFile Employer system and the payroll EMP501 Reconciliation Report to complete the PAYE, SDL and UIF reconciliations.

Meyer points out that this saves businesses considerable time and cost compared to manual calculation and capturing.

“Payroll departments should not issue tax certificates to their employees until they receive notice from SARS that the reconciliation is both complete and correct.”

Alison Job
Alison Job holds a BA English, Communications and has extensive experience in writing that spans news broadcasting, public relations and corporate and consumer publishing. Find her at Google+.