A mid-March notice from SA Revenue Services (SARS) to employers requesting that IRP501 returns and IRP5 tax certificates for employees should not be sent until the end of April, seems to be an instruction to employers not to submit these returns at all until further notice.
“This has caused some confusion among employers,” says Grant Lloyd, MD of payroll software developer Softline Pastel Payroll. “Another announcement from SARS is expected at the end of April which will detail changes to submissions that SARS is currently finalising. This is why the IRP501 and IRP5 tax certificate submissions should be placed on hold.”
Lloyd adds that shortly after the expected SARS announcement, employers will have to accommodate the changes currently being finalised by SARS.
Employers who are using manual systems or spreadsheets to handle their payroll processing will have to ascertain for themselves the legal implications and requirements of the changes and manually update their spreadsheets accordingly.
“However, those with modern automated payroll software such as Pastel Payroll will immediately become legally compliant simply by downloading a software update that will automatically implement the changes required by SARS.”
An automated payroll solution will ensure that no human error creeps in and that payroll legislation is complied with, giving companies more time to focus on their core business.