There is only one week left for employers to submit their reconciliation submissions for the Employer Interim Reconciliation which closes on 31 October 2014. Don’t delay, submit your reconciliation immediately, so that you can resolve any problems before the deadline of 31 October.
Make sure you have the latest, updated version of [email protected]™ Employer available. Remember: Always backup your current information on your computer before installing the new version, as the installation may delete your current information.
Manually completed Payroll Tax forms dropped-off at a SARS branch (in a drop-box) or posted, are no longer accepted.
These forms include:
- Monthly Employer Declaration (EMP201)
- Employer Reconciliation Declaration (EMP501)
- Tax Certificate Cancellation Declaration (EMP601)
- Reconciliation Declaration Adjustment (EMP701).
An exception is made for employers with a maximum of five (5) IRP5/IT3(a)s. In such cases the employer can still go into a SARS branch where an agent will help them capture these IRP5/IT3(a)s and the EMP501.
Employers should either use eFiling (For 20 IRP5/IT3(a)s or less) or [email protected]™ Employer (For any number of IRP5/IT3(a)s) to submit their declarations. These electronic channels are free, convenient and available 24/7.
While downloading the latest version of the [email protected]™ Employer, your anti-virus identified a virus and deleted any [email protected]™ Employer files already installed. Is there a virus on [email protected]™ Employer?
No, [email protected]™ Employer is not infected by a virus. Make sure you have set your anti-virus software to accept [email protected]™ Employer.
Should the problem still continue, follow these additional steps:
1. Ensure that your anti-virus software and signature files are up to date before downloading the [email protected] ™ software.
2. Make sure that all relevant and current security patches for the operating system used are installed on your desktop/laptop device.
3. In circumstances where the anti-virus software does quarantine the [email protected] ™ software, you should release the software from the quarantine and complete the installation as per normal.
Please contact your IT Department for further assistance should you need additional anti-virus software programmes or upgrades.
Certain employers may experience a problem due to duplicate or incomplete reconciliation declaration submissions made on [email protected]™ Employer.
What is considered a duplicate submission?
A submission is considered to be a duplicate once the verification has been completed and it is determined the information about to be re-submitted to SARS is identical to the previous submission made (e.g. the information contained in the Employer Reconciliation Declaration (EMP501) and the Employee Tax Certificates [IRP5/IT3(a)s] is the same as the previous submission).
What may cause a duplicate submission?
A duplicate submission may occur when an employer selects “Via SARS Branch (Electronic medium)” to generate the IRP5/IT3(a)s to check the correctness of the submission before submitting it to SARS.
What is considered an incomplete submission?
A submission is considered to be incomplete where all certificates have not been received.
What may cause an incomplete submission?
An incomplete submission may occur when an employer selects “Via SARS Branch (Electronic medium)” to generate the IRP5/IT3(a)s to check the correctness of the submission before submitting it to SARS.
Once the IRP5/IT3(a)s have been checked, and changes are made (where necessary), the employer then once again, submits the information to SARS by selecting “Via the Internet (eFiling Login Required)” which results an incomplete submission.
As [email protected]™ Employer only submits the updated EMP501 and/or new or amended IRP5/IT3(a)s, the initial information was not submitted to SARS, therefore resulting in incomplete information being submitted.
How do I fix this problem for either duplicate or incomplete submissions?
- Logon to [email protected]™ Employer
- Enter your login details
- Once on the home screen, select “Utilities” in the left hand side menu
- Select “Full Resubmission Request”, this is the last option in the menu
- Select the employer, from the drop-down list, for which the re-submission must be made
- Click “Request”
- A pop-up message will appear – please read this carefully
- Click “Yes” to continue
- You will now be at the reconciliation declaration screen.
- Capture your reconciliation declaration information and submit to SARS.
Why does SARS perform a verification before each submission?
In order to minimise duplications and improve the response time to employers on the outcome of their submissions, SARS does a verification each time an EMP501 and/or IRP5/IT3(a)s are submitted for processing. Where a duplicate is identified, this will result in an error as duplicates are not allowed for re-submission.
Once the verification of the IRP5/IT3(a)s has been completed and no changes are required, the employer then once again, submits the information to SARS by selecting “Via the Internet (eFiling Login Required)” which results in a duplicate submission.
The re-submission will not be allowed, as the information is identical.
- Be sure that when selecting “Submit to SARS” and completing the process, the information is ready and intended for submission to SARS.
- The full resubmission request function should only be used in exceptional circumstances as this will delay the processing of the reconciliation declaration submission.
Validation rules have been included on the Skills Development Levy (SDL) and Unemployment Insurance Fund (UIF) reference numbers. Therefore employers are advised:
- Where an entity is NOT registered for Pay-As-You-Earn (PAYE), SDL and UIF with SARS but still uses [email protected]™ Employer to submit their reconciliation declarations, their Income Tax reference number must be completed in the PAYE reference number field on the employer demographics page (EMPLOYER ADMIN – View/Edit/Change), but should remove the information from the SDL and UIF fields. UIF deductions should not be included when completing the reconciliation declarations, as these amounts are paid directly to the Department of Labour.
- Where an entity is registered for SDL and UIF, but not for PAYE and still uses [email protected]™ Employer to submit their reconciliation declarations, their Income Tax reference number must be completed in the PAYE reference number field on the employer demographics page (EMPLOYER ADMIN – View/Edit/Change) and must ensure the correct reference numbers are completed in the SDL and UIF fields.
The financial information on the EMP201 has been aligned to the EMP501.
- The Payments Details of the EMP201 has now been divided into three sub-sections:
- Payroll Tax Calculation – will work out your monthly liability due
- ETI Calculation – only if all the criteria and requirements have been met, are you allowed to claim – will work out your ETI used for the month.
- Total Payable – Will work out the amount due to SARS, if applicable.
- The EMP501
- Demographic information has been removed
- A wizard has been included, only creating the sections applicable.
- The IRP5/IT3(a) now includes:
- A wizard that only creates the sections applicable
- Additional source codes
- ETI fields, where applicable.
Need to find a Source Code?
- Taxable Bursaries or Scholarships – Further Education (3820 or foreign – 3870) – NQF levels 5 to 10.
- Non-taxable Bursaries or Scholarships – Further Education (3821 or foreign – 3871) –NQF levels 5 to 10 – exempt portion only.
- Non-taxable Fringe Benefit – Acquisition of Immovable Property (3822 or foreign 3872).
The postal address information for employees has been updated to align to the new SARS structure. These fields must be updated before you submit your reconciliation. Visit the SARS website for more information.
EMP501 = EMP201 = IRP5/IT3(a)s
- 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.
Please note: Submissions made on a disc at a SARS branch are no longer accepted.
Tax Season started on 1 July 2014 and already 3 million income tax returns have been submitted to SARS. Please remind employees who earn more than R250 000 per year and who meet other criteria to submit their returns before the deadline of Friday 21 November. The criteria for submission are outlined on the SARS website. They can also call the SARS Contact Centre on 0800 00 7277 for assistance with the submission of their returns.