As a South African employer, you are required to reconcile and submit PAYE, UIF and SDL contributions for the period 01 March 2013 to 28 February 2014. You need to submit accurate and complete employee tax certificates and a reconciliation of contributions for the year.
To ensure you meet all the requirements, follow these guidelines:
“It’s critical that companies download and install this software before conducting their PAYE, SDL and UIF reconciliations to ensure accuracy and compliance with SARS requirements,” says Madelein van der Watt, Development Manager at Sage Pastel Payroll & HR.
Should you use a previous version of the e@syFile™ Employer system, your submission will not be accepted by SARS.
Back up your current information
The installation may delete the current information, so make sure you back up your current information before installing the new version of e@syFile™ Employer.
Include individual income tax reference numbers on your tax certificates
SARS requires that tax certificates include the individuals’ personal income tax reference numbers. The e@syFile™ Employer system will generate warnings for each tax certificate without the required income tax reference number specified, indicating that potentially, penalties will be raised if this information is omitted from the final submission data.
Claim your Employee Tax Incentive (ETI)
If your company is claiming ETI, remember to include SIC codes and the value of the ETI you have claimed for the first two months of the ETI year. Also, you will need to include a new deduction source code and comply with new validations specific to ETI.
If you are using an automated payroll solution, it will generate tax certificates with the new ETI source code already consolidated and included in the CSV export for e@syFile™.
Submit your reconciliations before 31 May 2014
During the year-end procedures, the electronic tax certificates are generated automatically in the IRP5.14 file format if you make use of automated payroll solutions. This file can be imported directly into the e@syFile™ Employer system and the payroll EMP501 Reconciliation Report to complete the PAYE, SDL and UIF reconciliations. Van der Watt emphasises that this saves you considerable time and cost compared to manual calculation and capturing to complete the PAYE reconciliation submission twice a year.
Make sure you make all required submissions
You also need to submit your 2013-14 return of earnings to the Compensation Commissioner at roe.labour.gov.za. Online submissions are now accepted from 01 April 2014 and must be completed before the end of May 2014 to prevent unnecessary penalties and interest from being raised on your account. Employers who require a letter of good standing to be issued by the Department of Labour should compile and submit the ROE as soon as possible. Keep in mind that you first need to calculate each employee’s earnings up to the annual limit and separate your directors’ details before completing the COID return.
“Companies are advised to submit sooner than later, to provide them with ample time to rectify any reconciliation problems,” says van der Watt.