SARS has modernised its PAYE administration requirements and coupled hefty penalties for late submissions to this improved process, says Rob Cooper, a Softline VIP director and chairman of the Payroll Authors' Group.
Cooper has been involved in the discussion and planning of these changes with SARS since January and says the process of submitting tax certificates to SARS has been changed substantially.
"As many people are already aware, SARS are very reluctant to accept manual tax certificates and the annual IRP501 reconciliation procedure has changed. In addition to this, the 60-day filing season for employers has also been postponed to now start on 1 July," Cooper says.
Changes will affect companies as follows:
* Software will be supplied, free of charge, by SARS to assist companies to do PAYE reconciliation and to submit electronic and manual certificates electronically. This software will be available from 1 July 2008.
* Companies will have to capture manual certificates on the new SARS software.
* The IRP501 form has been simplified and is now called the EMP501. This form is incorporated into the software issued by SARS, and is also available from 1 July 2008.
* The filing season for companies will run for 60 days, from 1 July 2008 to 29 August 2008.
Changes will affect employees as follows:
* Each taxpayer will receive a customised return according to their personal requirements. This return will be populated with tax certificate data already submitted by the employer.
* For this reason, employees cannot get annual returns before their employer has submitted their tax certificates and reconciled those to the EMP501.
* Employees will have to request their annual returns from SARS, as these will not be posted in bulk, as in the past.
* Employees with a single employer, no additional income or deductions, and annual earnings up to a maximum of R120 000, will not be required to submit an annual return.
* The filing season for employees will run from 1 September 2008 to 21 November 2008 for manual submissions, and 23 January 2009 for electronic submissions via eFiling.
Cooper explains that the new process means that by 30 June 2008, companies will need to have all payroll information correct, reconcile financial data and generate electronic tax certificates.
The next step is to install the software provided by SARS, upload the electronic file which is generated on the payroll system, enter the data of manual certificates and reconcile PAYE payments (EMP501). This must be completed by 29 August 2008. Submissions can be made via eFiling from the electronic file, or must be write-encrypted onto a CD and taken to your nearest SARS branch. Once the reconciliation has been done, printed certificates can be issued to employees.
As these are substantial changes to the IRP5 submission and reconciliation process, Softline VIP is hosting a practical seminar for its clients, presented by Cooper. He will interpret the new requirements in practical terms, give guidance on the completion of the tax year-end, and tell you what you can do now in preparation for the new submission process. For more information and to book, visit www.vippayroll.co.za or call Softline VIP Customer Care on 012 420 7109.
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Softline VIP is a leading supplier of payroll and human resource management solutions in South Africa, Namibia and Botswana. The company now boasts more than 24 000 clients.
With three payroll and human resource management products, Softline VIP is able to meet the needs of any size company. Coupled with an extensive service offering, Softline VIP is the only payroll and HR solution geared to meet the challenges of the modern payroll office.
The VIP products are synonymous with ease of use, stability and reliability, with the flexibility to cater to the unique needs of every client. VIP promises long-term sustainability over and above legislative compliance. VIP understands the human resources and payroll environment and offers the client peace of mind by providing a total solution.
Softline VIP products include:
VIP Premier - Softline VIP also supplies leading technology to service large and corporate clients. VIP Premier is geared towards increasing the functionality of payroll systems and provides an uncomplicated solution for medium to large organisations. One of the key features of this product is that it is quick to implement in comparison to similar solutions. Meeting the needs of any payroll office and supplying the most suitable solution is important for Softline VIP as it strives to ensure practical solutions for all users. Our products are easy to use and reliable and the information produced is accurate and complies with all statutory requirements.
VIP Classic - VIP Classic is the perfect solution for clients with bigger operations than the one-man business. VIP Classic provides the same flexibility as larger systems but is aimed at the small to medium sector. This software offers a total solution to users.
VIP Essentials - VIP Essentials is geared to small businesses and contains the same ease of use and stability of all VIP's products. VIP Essentials is an affordable product making it an ideal solution for the small business paying less than 30 employees.
Softline
Softline is a leading provider of accounting, payroll and CRM software solutions to small, medium and large companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia.
Focused on the development of accounting, payroll and CRM software solutions, Softline has a 17-year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline's leading brands include Softline Accpac, Softline Enterprise, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group's product offerings, provide Softline customers with comprehensive, well-branded accounting, payroll and CRM software solutions.
In November 2003, Softline was acquired by Sage Group plc, a FTSE 100 company. The software group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large business community.
Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll and CRM software solutions that improve the efficiencies of businesses around the world.
Sage
The Sage Group plc is a leading supplier of accounting and business management software solutions and services to 5.5 million small and medium-sized clients worldwide. With over 13 900 employees, the Sage Group comprises market-leading businesses throughout Europe, United Kingdom, North America, South Africa and Australia. Its products and services are sold through a global network of 25 000 reseller partners, 40 000 accountants as well as directly to clients from Sage companies throughout the world. For the financial year ending 30 September 2007, the group's revenue grew by 30% to lb1,175.6 million.
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