GET READY FOR THE 2014 EMPLOYER ANNUAL RECONCILIATION
From 1 April 2014 it will be time to submit your Employer Annual Reconciliation for the period 1 March 2013 to
28 February 2014. The sooner you submit during the reconciliation period the better as this will give you time to resolve any little issues, which may arise.
To help you get ready to submit we would like to tell you about the changes you may expect this year:
Always backup your current information on your computer prior to installing a new version of e@syFile™ Employer
, as the installation may delete your current information.
- Download the latest version of e@syFile™ Employer.
You will automatically be prompted to update when accessing e@syFile™ Employer or visit SARS eFiling to download the latest version of e@syFile™ Employer. SARS will from time to time enhance the system, to help you easily submit your reconciliation submission. Therefore visit our website regularly and stay informed of any changes which may be announced.
- Import the electronic IRP5/IT3(a) CSV files from your current payroll system into e@syFile™ Employer.
- Reconcile your EMP501 – Capture all additional manual IRP5/IT3(a)s, and e@syFile™ Employer will use the information from all the tax certificates to automatically populate certificate totals for your EMP501. Enter your monthly liabilities and payments, and e@syFile™ Employer will calculate the rest!
- Employment Tax Incentive (ETI) included in the reconciliation submission
The ETI came into effect on 1 January 2014 which encourages private employers to employ young workers by providing a tax incentive. Qualifying employers are able to claim the ETI and reduce the amount of Pay-As-You-Earn (PAYE) payable to SARS. To see if you are a qualifying employer and employ qualifying employees, click here. Any amounts claimed for ETI on your Monthly Employer Declaration (EMP201) must be included in the spaces provided when completing your reconciliation submission.
- The ETI supporting data must only be submitted when requested by SARS
This data allows SARS to verify the ETI amounts claimed. For now, the ETI supporting data should not be included in the IRP5/IT3(a) file created by payrolls and should not be uploaded to e@syFile ™Employer for the reconciliation submission. The ETI supporting data requirements have been listed in Appendix C of the Business Requirement Specification: PAYE Employer Reconciliation (including the Employment Tax Incentive requirements).
- Completing the Employer Reconciliation Declaration (EMP501)
Make sure you enter the correct amounts for each month.
- The Gross PAYE before the ETI deduction must be completed.
- The Total actual payments after the ETI deduction must be completed.
- The ETI details section is mandatory, if you are claiming the incentive.
- Read all notes provided carefully, while completing the EMP501.
- New source code [IRP5/IT3(a)]
ETI (4118) – The sum of the ETI amounts calculated (theoretical amounts) for the employee during the year of assessment. The value of this code cannot be a negative.
- Updated source codes [IRP5/IT3(a)]
- Code 3703 may not be reflected on an IRP5/IT3(a) together with code 3701 and/or 3702. The value of code 3703 must be included in the value of code 3702 under these circumstances.
- Code 3802 – Use of motor vehicle acquired by employer NOT via Operating Lease (PAYE). Code 3852 MUST only be used for Foreign Service income.
- Postal address information for employees has been updated to align to the new SARS structure [IRP5/IT3(a)]
These fields must be updated before you submit your reconciliation. The requirements are listed in Appendix D of the Business Requirement Specification: PAYE Employer Reconciliation (including the Employment Tax Incentive requirements). For examples of the new structure click here.
- The Standard Industrial Classification (SIC7) code has been included. The list of the codes is available in Appendix E of the Business Requirement Specification: PAYE Employer Reconciliation (including the Employment Tax Incentive requirements).
Top Tip: Although Pensioners are not employed, Retirement Funds/Fund Administrators are required to submit the SIC7 codes. Code 64300 must be entered, which is the “trust, funds and similar financials entities” code. This information will be excluded for the 2015 Employer Interim Reconciliation submission in August 2014.
Don’t forget the following important details:
- eFiling may be used as a submission channel, where you have 20 or less IRP5/IT3(a)s to submit with your EMP501.
- Complete accurate reconciliation documents.
- Your accurate reconciliation documents must include your EMP501, IRP5/IT3(a)s, and where applicable your Tax Certificate Cancellation Declaration (EMP601).
Don’t forget to complete the ETI
section of the EMP501, if applicable.
- Ensure that your reconciliation submission balances
- The EMP501 must reconcile to your EMP201s which should have been submitted during the period (giving you a chance to correct this, where needed)
- The EMP201s must reconcile to payments made for the period
- The EMP201 payments must reconcile to your IRP5/IT3(a)s generated.
- Before submitting your reconciliation documents, check your Employer Admin information is up-to-date on e@syFile™ Employer. Do this by:
Click View/Edit/Change under EMPLOYER ADMIN (make sure that you select the tab called EDIT Employer).
Complete/check each section, concerning the employer, as required:
- Address and Phone information
- Bank Information
- Contact Details
Top Tip: Click Next after each section to continue.
- Click Save and Updated Employer and submit your declaration to SARS.
- Submit your reconciliation documents before the deadline of 30 May 2014.
- Submission can be made electronically either online using e@syFile ™Employer or on a disk at a SARS branch - the disk must contain an encrypted file created by e@syFile™ Employer. Signed hard copies of the EMP501, and EMP601 (if applicable) must be submitted together with the disk. Once SARS has captured the information, the disk will be returned to you, to sustain the security of the information provided.
Top Tip: Experiencing problems due to duplicate or incomplete EMP501 submissions made on e@syFile™ Employer, read more here.
- Latest Business Requirements Specification (BRS) available - The Business Requirement Specification: PAYE Employer Reconciliation (including the Employment Tax Incentive requirements) is available which states the data submission requirements to SARS.
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