Pretoria 8 April 2013 – On Friday, 16 May 2014 a Public Notice will be published in the Government Gazette requiring employers in the country to submit their payroll data to the South African Revenue Service (SARS) for the 2014 Tax Season by 30 May 2014. Click here to check availability of the notice.
Although the Employer Annual Reconciliation period must be filed by 30 May 2014, employers have been able to submit their Reconciliations from 1 April 2014, and since last month SARS has been reminding employers in writing that the submission period had begun.
Employers are required to submit their Employer Reconciliation Declarations (EMP 501 forms) and Employee Tax Certificates (IRP5 certificates of employees) for the transaction period from 1 March 2013 to 28 February 2014.
Employers play an important role in the tax system because the employers’ payroll data enables SARS to prepare a pre-populated income tax return for employees which will become available when the 2014 Tax Season starts on 1 July 2014.
In 2013 more than 85% or 242 998 employers submitted their payroll data to SARS on time, and employers that do not meet submission deadlines may face an administrative penalty for each month that a complete return is not filed. This administrative penalty may be calculated up to 10% of the total PAYE that was or should have been deducted .
To complete their reconciliation, employers must:
1. Use the latest version of [email protected]™ Employer software. Employers must visit the SARS eFiling website to download the latest version of [email protected]™ Employer.
2. Import the electronic files from their current payroll system into [email protected]™ Employer.
3. Reconcile their EMP501.
Should the reconciliation submission fail to balance (ie. the PAYE 501 reconciliation does not match to the monthly declarations, the amounts deducted and paid and the IRP5s issued) SARS will issue a letter notifying the Employer that its reconciliation submission was unsuccessful. The Employer will then need to use the Reconciliation Assistant available on [email protected]™ Employer to assist in correcting and balancing its reconciliation submission.