Enhanced Payment Allocation on e@syFile™ Employer

The payment allocation rules have been enhanced to include the allocation of payments for AA88 based on the payment reference number (PRN) supplied by an employer. Where an outdated PRN is used, these payments will be allocated on a First-In-First-Out (FIFO) basis.

Cancellation/finalisation of AA88s

SARS would like to advise employers of the additional process for the cancellation of/finalised AA88s.
To ensure employees are not negatively impacted, deductions of AA88s should be stopped when an employee has sorted their tax affairs and paid the outstanding AA88 debt.
Employers are requested to continuously synchronise the e@syFile™ Employer, to ensure the latest information concerning AA88s is received from SARS.
All AA88 deductions must also be stopped, when an employee produces an official SARS letter (which will contain the official SARS stamp) confirming that their tax affairs have been rectified and the outstanding debt has been paid, accompanied by a Penalty Statement of Account (APSA) with a zero balance or an Income Tax Statement of Account (ITSA) with a refund due (credit balance) or a zero balance, which indicates the AA88 debt has been paid.
Employers using e@syFile™ Employer are urged to validate the finalised or cancelled AA88s prior to suspending any deductions, in order to minimise the risk of fraudulent documents having been submitted.
When an employee produces these documents, employers are requested to immediately discontinue the withholding and payment of the applicable AA88 to SARS. Any funds already withheld, but not paid over to SARS should be returned to the employee. Any overpayment (e.g. where the employer has paid the funds over to SARS already), will be refunded to the employee, provided there are no additional outstanding requirements from SARS (e.g. outstanding returns, updated banking details required, etc.).
Employers not using e@syFile™ Employer are encouraged to download the latest version, as numerous enhancements have been made to streamline the management of AA88 helping employers to easily manage and pay their AA88s to SARS.
Last Updated: 26/05/2015 3:28 PM     print this page
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