All SA companies are required to submit their SARS interim PAYE reconciliation that is due from 1 September – 31 October 2013, including their employee tax certificates and EMP501 reconciliations for the period 1 March to 31 August 2013.
Employers also need to ensure they make use of the latest SARS e@syFile software release, which they can download from the SARS website.
Without downloading the software companies will not be able to successfully submit their interim PAYE reconciliations and transfer the data electronically to SARS.
Every employee must have a tax number
Philip Meyer, technology director at Sage Pastel Payroll & HR, says legislation dictates that each and every employee in a company must be registered on the SARS database with their own tax number.
Therefore individual income tax reference numbers must be reflected in the SARS interim PAYE reconciliation.
If one or more tax certificates do not include the tax reference number, companies will receive an error notification in e@syFile and will be penalised.
Companies using an automated payroll software solution can obtain employee tax reference numbers via bulk ITREG functionality and the e@syFile Employer system to simplify the reconciliation.
Be compliant with fringe benefits legislation
Another important requirement for companies is to comply with new legislation pertaining to employees making use of company vehicles leased by their employer.
Meyer says the fringe benefit value is the rental contract plus the fuel cost for the month. However, the rental contract must be classified as an operating lease.
Be aware of new source codes
“New source codes were also introduced in the event that the employer pays a lump sum to the family of a deceased employee.
The first R300 000 of the lump sum is tax free but the portion exceeding R300 000 is taxed by way of a SARS directive and the lump sum must be reported against code 3922 and the PAYE on the lump sum must be allocated to code 4115.
Making filing as easy as possible
Meyer adds that companies can receive step-by-step assistance from a SARS Contact Centre agent through the SARS Help-You-eFile, a service innovation introduced by SARS to give companies access to SARS contact centre agents online.
“Use of a reputable payroll software system will result in a smooth interim PAYE reconciliation, as the software will automate the reconciliation process for the company. Some payroll solutions require only that users load their employees’ information and payslips.
Therefore no manual calculations are required so that companies simply upload the file to e@syFile.”