Companies need to be on the ball as the preparation season for employers to collate the additional information fields required by SA Revenue Services in the 2010 Employer's Filing Season is just around the corner, starting on 1 April 2010 and ending eight weeks later on 31 May 2010.
Employers are required to use the latest version of e@syFile for their submissions. Submissions made using the earlier versions of e@syFile will not be accepted. The new e@syFile software can be downloaded from the SARS Web site (http://www.sars.gov.za) from 1 April.
“It is very important that companies only begin their submissions from 1 April and not before,” says Grant Lloyd, managing director of payroll and HR software specialist Softline Pastel Payroll. “They need to complete their Employer Reconciliation Declaration, including EMP501 and EMP601, along with all employee tax certificates.”
He stresses that companies can only print and issue IRP5/IT3(a) tax certificates to their employees after the submission season ends, from 1 June 2010.
“Some companies may not have clarity on whether employees earning salaries amounting to less than R60 000 a year have to provide their employers with a personal income tax reference number,” says Lloyd. “The fact is that they do not have to apply for a tax reference number and therefore do not need to submit the information.”
Employees earning above R60 000 per annum are required by legislation to register for an IT Reference Number. These employees can go to their local SARS office to obtain the number by completing the IT77 form with the required supporting documentation.
During August/September 2010, e@syFile will allow employers to verify employees' income tax numbers and will also allow employers to register employees who have not yet applied for an income tax number.
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 a file. This file can be imported directly into SARS e@syFile. In addition, businesses can print out the automated EMP501 Reconciliation Report to manually complete the PAYE, SDL and UIF Reconciliations. This saves businesses considerable time and cost compared to manual calculation and capturing.
Lloyd said the new system should be welcomed, as it “eases the burden on all involved - SARS, employers and taxpayers”. Employers using compliant automated payroll software benefit from streamlined and simplified PAYE submissions to SARS.
Companies also need to remember that copies or electronic files of documents submitted to SARS must be kept for five years.
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Softline Pastel Payroll
Softline Pastel Payroll, a member of the Softline group, is the leading developer of payroll and HR software solutions and services in South Africa. Skills, experience and innovation in this field accumulated over more than 20 years in business confirm Pastel Payroll's leading position in the SME market. Pastel Payroll provides a wide range of software solutions from start-up to medium as well as large sized enterprises. Easy-to-use, feature-rich and flexible payroll and HR software ensures businesses are kept up-to-date and fully compliant with changing legislative and SARS Employer Filing Submission requirements. Let our payroll and HR software do it all for you. www.pastelpayroll.co.za http://www.pastelevolution.co.za
The Sage Group
The Sage Group is a leading global supplier of business management software solutions 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 5.8 million customers and more than 14 500 employees worldwide. We operate in over 26 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information please visit http://www.sage.com.
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