​Employer Interim Reconciliation

17 September 2018 - Employer Interim Reconciliation Submissions
The Employer Interim Reconciliation submission period is open from 17 September until 31 October 2018. During the Interim Reconciliation submission period, employers are required to submit an Employer Reconciliation Declaration (EMP501) and an interim Employee Income Tax Certificate [IRP5/IT3(a)s] for the six month period - 1 March to 31 August 2018. The interim IRP5/IT3(a)s must not be issued to an employee, unless it is a final certificate (where the employee has left the service of the employer or the employer ceased to be an employer on or before 31 August 2018).

Changes implemented include:

  • Employment Tax Incentive (ETI) Legislative amendment effective from 1 August 2018
    The age limit applicable to employees qualifying for Employment Tax Incentive (ETI) claims does not apply to employers operating within a Special Economic Zone (SEZ). From 1 August 2018, an eligible employer operating from a fixed place of business that falls within a SEZ can claim the Employment Tax Incentive (ETI) for employees younger than 18 and older than 29 years of age, if these employees render services to the eligible employer mainly within that SEZ. The validation of the monthly calculated ETI (code 7004) was amended to make provision for the SEZ benefit.

  • Designated SEZs are as follows:
    • Coega
    • Dube Trade Port
    • East London
    • Maluthi-A-Phofung
    • Saldanha Bay
    • Richards Bay

  • New Income Source Codes for Section 10(1)(qA) 3829/3879, 3830/3880, 3831/3881 and 3832/3882
    These source codes pertain to an increase in threshold, for the exemption of employer provided bursaries to learners with disabilities:
    • 3829/3879 – Taxable Bursaries or Scholarships to a disabled person – Basic Education (PAYE).
    • 3830/3880 – Non-Taxable Bursaries or Scholarships to a disabled person – Basic Education (Excl).
    • 3831/3881 – Taxable Bursaries or Scholarships to a disabled person – Further Education (PAYE).
    • 3832/3882 – Non-Taxable Bursaries or Scholarships to a disabled person – Further Education (Excl).
       
  • New Source Codes 3723/3773
    New source code 3723/3773 - Dividends not exempt i.t.o. par (kk) of the proviso to s 10(1)(k)(i) (PAYE).

  • New Source Codes 3722/3772
    New source code 3722/3772 - Reimbursive travel allowance (PAYE), where the reimbursement rate exceeds the prescribed rate for the portion that exceeds the prescribed rate, multiplied by the actual business kilometres.

  • Paragraph 1, Par (cA) and new Par (cC) of the Fourth Schedule: Definition of remuneration
    The explanation of the following codes was amended:
    • 3702/3752 – Reimbursive travel allowance (IT), where the reimbursement rate exceeds the prescribed rate of the portion that does not exceed the prescribed rate, multiplied by the actual business kilometres.
    • 3703/3753 – Reimbursive travel allowance (Excl), where the reimbursement rate does not exceed the prescribed rate.

  • New source code for the Transfer of a Retirement benefit
    New source code 3924 pertaining to the “Transfer on Retirement (PAYE)”, on or after the normal retirement age, as defined in the rules of the fund, but before the retirement date has been added.

  • Improved management of the employer reconciliation submissions
    The Employer Reconciliation Declaration (EMP501) pre-populating request and balancing process were enhanced, and a new functionality to stop the EMP501 reconciliation introduced, where the liabilities were changed in excess of a predefined threshold for manual verification.

  • Other enhancements to improve taxpayer compliance:
    • Enhancements to the Tax Certificate Cancellation Declaration (EMP601) process on e@syFile EmployerTM
    • Implementation of exception processes to manage scenarios where current processes cannot be utilise
    • Enhancements to the Revised Declaration Function (Monthly Employer Declaration – EMP201)
      • The Employment Tax Incentive brought forward amount will be pre-populated.
      • Employers can refresh their EMP201 data once non-compliance has been resolved and then claim their Employment Tax Incentive (ETI) for the month.

  • Payroll Tax (PAYE, SDL and UIF) compliance
    To avoid penalties being levied, make sure that you submit your declaration by no later than
    31 October 2018.

Please note: Monthly Employer Declarations (EMP201) and payments need to be submitted to SARS by the 7th of each month. In instances where the 7th falls on a public holiday, Saturday or Sunday, the due date becomes the last business day prior to the 7th. When making a payment, make sure that the correct Payment Reference Number (PRN) is used so that payments are correctly allocated.

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Last Updated: 16/10/2018 3:20 PM     print this page
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