Welcome to the latest edition of Tax Practitioner Connect, the electronic newsletter for tax practitioners that keeps you up to date with the tax matters that affect you.
On 26 April 2019 we introduced changes to the Payroll Taxes Statement of Account (SOA) in an attempt to address complaints received from employers about errors occurring on the SOA.
The SOA shows the balance and detailed transactions for a tax year for Pay-As-You-Earn (PAYE), the Skills Development Levy (SDL), the Unemployment Insurance Fund (UIF) and the Employer Tax Incentive (ETI). The purpose of this statement is to supply the employer with an overview of the financial transactions for the various payroll taxes and to ultimately enable employers to complete and submit their Employer Reconciliation Declaration bi-annually.
To ensure that the information contained in this statement is clear and comprehensible, we have amended the manner in which financial transactions are being displayed. Some of the key enhancements include:
- Descriptions were enhanced to provide employers with a better understanding of the two types of transactions reflected i.e. liability and non-liability transactions
- All liability transactions are now grouped together and sorted in transaction date order with the exception of non-financial transactions with a date earlier than the first day of the period
- The addition of a receipt number for payments and journals will allow employers to uniquely identify payments and reconcile them back to their bank statements
- ETI transactions which have no impact on the PAYE account, have been grouped together and will reflect at the bottom of the Statement of Account.
We are continuously striving to enhance our systems and forms and trust that the enhancements made to the SOA will promote ease of doing business with us.
We are introducing new look e-format forms on eFiling for the PAYE Interim Reconciliation which opens on 16 September 2019.
SARS is continuously striving to enhance our systems and forms aiming to promote ease and fairness of doing business with us. As a result we are introducing cleaner format forms which will be available on eFiling but not on [email protected] We will make the new format available for [email protected] at a later stage but until such notice [email protected] will maintain the current screens.
Our eFiling platform will adopt a new look and feel for the EMP201, EMP501, EMP601 (Tax Certificate Cancellation Declaration), EMP701 (Reconciliation Declaration Adjustment) as well as the interim Employee Income Tax Certificate (IRP5/IT3(a)s – for the six month period: 1 March to 31 August 2019).
We encourage employers to make use of SARS eFiling. Please note that the SARS eFiling registration process will be simplified and will take place via the SARS website www.sars.gov.za and no longer via the www.sarsefiling.co.za URL.
Please note that you will only be able to use eFiling if you are registered as an eFiler and that you may be asked to visit a SARS branch to confirm the information given.