SARS has compiled a handy checklist that will make it easy for you to submit your declaration accurately and on time.
You can download this from http://www.sars.gov.za/home.asp?pid=187
During the PAYE Interim Reconciliation you are required to submit your Employer Reconciliation Declaration (EMP501) and Employee Income Tax Certificates [IRP5/IT3(a)s] for the six month transaction period 1 March to 31 August 2012, in respect of the Monthly Employer Declarations (EMP201) submitted, the payments made and the IRP5/IT3(a)s generated.
Before you start working on your declaration, here is a 8-point checklist to get an overview of what you should be looking out for.
1. Submit your declaration as early as possible
Your reconciliation declaration includes:
- Your EMP501
- The applicable IRP5/IT3(a)s – These certificates must not be issued to employees, as they are for SARS’s administrative purposes only. Certificates should only be provided to the employees whose employment was terminated prior to the closing of the interim period, due to resignation, death, immigration or any employer ceasing to be an employer.
- Your Tax Certificate Cancellation Declaration (EMP601), if applicable.
2. Use the e@syFile™ Employer software
- e@syFile™ Employer has been updated for this PAYE Interim Reconciliation. Only the latest version must be used as any information submitted to us using a previous version will not be accepted.
Please note that if you wish to submit a previous year’s reconciliation you will need to convert the files to the current CSV format and submit, as old or outdated CSV files will not be accepted.
- The latest version of e@syFile™ Employer 6.1.0 is available at http://www.sarsefiling.co.za/
3. Check on the update to the IRP5/IT3(a) and introduction of new and re-activated source codes
- The IRP5/IT3(a) has been updated due to the introduction of the Medical Scheme Fees Tax Credit and code 4116 has been included under the “Tax Credits and/or Employer’s/Employee Contributions” section.
An amount must be completed next to this source code, for all employees below the age of 65 years receiving 4005 Medical aid contributions.
- The following new source code have been included:
FRINGE BENEFIT CODE:
3815 (3865) – Non-taxable bursaries and scholarships to employees and their dependents – Section 10(1)q – Exempt portion only.
LUMP SUM CODE
3922 – Compensation i.r.o death during employment (Excl/PAYE).
Compensation lump sum payments in terms of Section 10(1)(gB)(iii) in respect of the death of an employee in the course of employment
- The following previously de-activated source codes have now been re-activated. These source codes are valid from:
- 1999 – 2009 year of assessment and from the 2013 year of assessment
- 2002 – 2009 year of assessment and from the 2013 year of assessment for the Foreign Service Income [the source codes denoted in (brackets)].
NORMAL INCOME CODES:
- 3603 (3653) – Pension (PAYE)
- 3610 (3660) – Annuity from a Retirement Annuity Fund (PAYE)
FRINGE BENEFIT CODES:
- 3805 (3855) – Accommodation (PAYE)
- 3806 (3856) – Services (PAYE)
- 3808 (3858) – Employee’s debt (PAYE)
- 3809 (3859) – Taxable bursaries or scholarships (PAYE)
All the above changes have been made in Pastel Partner Payroll 2013 Update 2a
Pastel Partner Payroll 2013 Update 2a is available and can be downloaded as a Frictionless Update provided you have installed version 2012 Update 2b, or you can download it from http://www.pastelpayroll.co.za/Pastel-Payroll-Software-Product-Updates/Pastel-Payroll-Software-Download-Latest-Version.asp
It is imperative that you download this update as it includes new legislation for the 2013 PAYE Interim Reconciliation.
4. Request your reconciliation declaration forms
You can access reconciliation declaration forms through the following channels:
- On e@syFile™ Employer, for electronic completion and submission
- Manually, by requesting the forms from the SARS Contact Centre
5. Submit your PAYE Interim Reconciliation Declaration though the right channel
Completing your reconciliation online using e@syFile™ Employer and submitting it via SARS eFiling is the quickest, easiest and most convenient option.
6. Note the changes regarding duplicate reconciliation declaration submissions
New controls and process have been put in place to minimise the number of duplicate reconciliation declaration submissions that SARS receive.
The following changes have been implemented:
- e@syFile™ Employer will only allow changed IRP5/IT3(a)s to be submitted
- We will no longer accept a re-submission that is deemed to be a duplicate submission. You can use the PAYE dashboard on e@syFile™ Employer to confirm the status of your submission.
7. Get help from SARS’s PAYE Recon Assistant
- Where your reconciliation submission fails to balance across the three elements [EMP201, payments submitted and IRP5/IT3(a)s)], SARS will issue a letter notifying you that your reconciliation submission was unsuccessful.
- The PAYE Reconciliation Assistant is available on www.sars.gov.za to assist you in correcting your tax affairs and balancing your reconciliation submission.
8. Visit www.sars.gov.za for the latest information
Pastel Payroll covers the A-Z of the Interim PAYE Reconciliations on our website.
Visit our Interim PAYE Reconciliation page on http://www.pastelpayroll.co.za/Pastel-Payroll-Software-SARS/Pastel-Payroll-Software-Latest-SARS-Changes.asp