SARS has announced that the new annual PAYE reconciliation submission season will start on 4 April this year and end on 3 June.
“The first step for companies is to ensure that they download the latest version of e@syFile Employer from the SARS website www.sarsefiling.co.za. The software will be available to companies from 4 April 2011,” says Grant Lloyd, MD of payroll and HR software specialist Pastel Payroll.
“It is critical that companies download and install this software before conducting their PAYE, SDL and UIF reconciliations to ensure accuracy and compliance with SARS requirements.”
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.
“The employer must confirm the company’s assent to the SARS penalties procedure before the company can continue with the reconciliation and submission.
“SARS also intends increasing the penalties to employers, applying to employee tax certificates that do not have a registered tax number. It therefore makes financial sense for companies to ensure that they register all unregistered employees on their payroll with SARS before they submit tax certificates for reconciliation.”
Companies should remember that the bi-annual submission is completed for reconciliation purposes only, so payroll departments should not issue tax certificates to their employees until they receive notice from SARS that the reconciliation is correct and complete.
Companies using an automated payroll solution need only capture employees’ information and their payslips. During the year end procedures, the electronic tax certificates are generated automatically in the IRP5.11 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. This saves businesses considerable time and cost compared to manual calculation and capturing.