Subscribe
  • Home
  • /
  • Financials
  • /
  • SARS interim PAYE reconciliation season is open for all SA businesses

SARS interim PAYE reconciliation season is open for all SA businesses


Johannesburg, 03 Sep 2012

SME companies should brace themselves for the interim PAYE reconciliation that is due from 1 September to 31 October 2012. Employers are required to fully reconcile and submit their employee tax certificates and EMP501 reconciliation for the period 1 March to 31 August 2012, by the end of October 2012.

Employers need to make use of the new SARS e@syFile software release, e@syFile V 6.1.0 to successfully submit their interim PAYE reconciliations. If they don't, they will not be able to transfer their data electronically, as the new software release will not recognise the old format.

"Companies have no choice," says Philip Meyer, technology director of payroll and HR software developer Softline Pastel Payroll, part of the Softline Group and Sage Group.

Legislation dictates that each and every employee in a company must be registered on the SARS database with their own tax numbers. Therefore, individual income tax reference numbers must be reflected in the 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 with effect from 1 September 2012, companies will be penalised.

"New legislation that took effect in March this year means that medical aid contributions are no longer allowed as a tax deduction for employees under the age of 65. The medical aid capped amounts have also been replaced with medical aid tax credits. If companies did not make use of the medical aid tax credit method, their submission will be rejected and they will be required to manually recapture the details on e@syFile," adds Meyer.

A new IT3(a) reason code for tax certificates has been introduced by SARS for non-deduction of PAYE and must be applied on interim tax certificates. Code 08 will indicate a zero PAYE liability due to medical aid tax credits applied. There are also new source codes for fringe benefits and tax deductions that must be applied to interim tax certificates, replacing the consolidated values SARS required prior to the 2012 tax year. Most automated payroll software systems already cater for these codes.

Companies can receive step-by-step assistance from a SARS contact centre agent with Help-You-eFile. Help-You-eFile is a new service innovation from SARS that gives companies access to SARS contact centre agents online.

For a smooth interim PAYE reconciliation, opt for a reputable payroll software solution that can automate the reconciliation process for the company. Some automated payroll software providers require that users only load their employees' information and payslips. Therefore no manual calculations are required and companies can simply upload the file to e@syFile.

For further assistance with the interim PAYE reconciliation season, companies can attend the SARS interim submissions seminar, hosted by Softline Pastel Payroll. Make contact on (+27) 11 304 4390 or go to seminars@pastel.co.za.

Share

Pastel Payroll

Pastel Payroll, part of Softline and the Sage Group, is one of the leading developers of payroll and HR software solutions and services in South Africa as well as the rest of the African continent. Skills, experience and innovation in this field accumulated over many years in business confirm Pastel Payroll's leading position in the SME market. Pastel Payroll & HR provides a wide range of software solutions from start-up to medium-sized as well as larger enterprises. It offers easy-to-use, feature-rich and flexible payroll and HR software solutions to ensure businesses are kept up to date and fully compliant with changing legislative requirements - our software does it all for you.

Softline

Softline is a leading provider of business software and related services. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the business software industry. While Softline's heritage is in the SME market, the group also offers expertise and solutions that meet the needs of specific industries and larger organisations. In 2003, Softline was acquired by the Sage Group, a FTSE 100 company. Softline has a solid track record offering customers local expertise backed by the global Sage brand. The group delivers quality software solutions to make customers' business lives easier.

The Sage Group

The Sage Group is a leading global supplier of business management software and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has more than six million customers and more than 13 500 employees worldwide. Sage operates in over 24 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information, please visit www.sage.com.

Editorial contacts