Two week postponement
SARS announced that the filing season for Employee Tax Reconciliations for the 2015/2016 tax year will not start on 01 April 2016 as expected. The filing season has been postponed to commence only on 18 April this year. The deadline is still 31 May 2016 which means employers will have less time to get their EMP501 reconciliations submitted successfully.
This does not mean that employers can sit back and wait until the 18th before starting to get their PAYE affairs in order. The clever approach is to start preparing all your employee data and using the validations in e@syFile 6.6.3 – the same version that will be used during this year’s filing season – to ensure that the data is complete and accurate before you hit the submit button when the filing season officially starts.
E@syFile Employer is available to download from http://www.sarsefiling.co.za.
Strict rules for pre-populated individual tax returns (ITR12)
It is important to take note of the new approach SARS is taking this year with regards to personal information submitted for each individual employee. SARS will no longer allow individuals to update their personal info – address, telephone number, email address – during the individual filing season that will start mid 2016. Instead, they are pressuring employers to make sure the personal data they submit is accurate since the tax certificate info is used to pre-populate each individual’s tax return.
If the information on the tax return is not accurate, the employee needs to approach his/her employer to amend the tax certificate that was submitted during the reconciliation process. The personal data can only be corrected by an amended tax certificate that will in turn update the tax return.This process can take some time to complete and can prevent an individual from filing a tax retun before the deadline.
Ensure that refunds can be paid out quickly
Another important point is to ensure that the banking details that are submitted with the tax certificate should be current and correct. If the individual qualifies for a refund on assessment and the banking details on file are incorrect, the taxpayer is going to go through a tough time trying to get the banking details amended before the refund is paid out.
Don’t delay, start today!
To ensure that employees are able to submit their personal income tax returns without any hassles, employers must take a proactive approach by ensuring that they get the correct personal and banking details from each individual prior to preparing the 2015/2016 tax certificates.
Use the 2 week postponement to prepare, verify and validate your tax certificate data. Don’t get slammed with unnecessary penalties and fines by missing the 31 May 2016 deadline.