SARS Interim PAYE Reconciliations
The SARS Interim PAYE Reconciliation submission season opens on 1 September 2014. This means that you only have the month of August left to prepare all the necessary, mandatory information and update your payroll system before you perform your last payroll run in August 2014.
Below, please find the A-Z of how you can prepare for a successful SARS Interim PAYE Reconciliation.
What you need to know
- Employers have to submit a 6-month reconciliation of PAYE, UIF and SDL from 01 September 2014 until 31 October 2014
- The submission must include IRP5/IT3(a) tax certificates for the period 01 March 2014 to 31 August 2014.
- SARS issues new validation rules before the start of each Employer Filing season and employers must ensure that they are always using the latest version of payroll software (Sage Pastel Payroll & HR 2015 Update 3) as well as SARS e@syFile (Version 6.5.2) to ensure their submissions pass the current validations.
- New validation rules for the upcoming interim submissions include:
- New employee postal address fields. Ensure that the postal addresses on your employee masterfiles are structured in the new format required by SARS (only available in Sage Pastel Payroll & HR 2015 Update 3).
- Mandatory SIC codes. The Standard Industry Classification codes for the company and its employees is a mandatory field and must comply with the SIC7 list of codes.
- New ETI Supporting data fields. Each electronic tax certificate submitted to SARS must include supporting data for ETI claims, where relevant (only available in Sage Pastel Payroll & HR 2015 Update 3)
- New source codes:
- Code 3820 – Taxable Bursaries/Scholarships for further education and training
- Code 3821 – Non Taxable Bursaries/Scholarships for further education and training
- Code 3822 – Non Taxable Fringe Benefit for the acquisition of immovable property
- Employers should also take note of the increase in the interest rate used to calculate fringe benefits. The increase took effect 01 August 2014 and the new rate that should be used is 6.75%. This means that whenever an employer issues a staff loan to an employee, the employer should charge interest on the loan at at least 6.75%. If the interest charged by the employer is less than the official interest rate then the difference in interest payable results in a taxable fringe benefit.
- No manual submissions will be accepted from 25 August 2014 if you have more than five IRP5/IT3(a) tax certificates to submit. All EMP201, EMP501, IRP5/IT3(a), EMP601 and EMP701 forms MUST be submitted electronically via SARS e@syFile and eFiling from now on. If you have been submitting your payroll taxes manually thus far, we strongly suggest you do the following ASAP:
- Sign up for a SARS eFiling profile
- Install the free SARS e@syFile software
- Familiarise yourself with the process and requirements of submitting electronically, either
Capture all your tax certificates and reconciliations manually on SARS e@syFile and then submit online
Import the data from your payroll software into SARS e@syFile and then submit online
Sage Pastel Payroll & HR tips
Kindly remember to utilise the EMP501 Reconciliation Report to complete your PAYE, SDL and UIF reconciliation declaration on SARS e@syFile. This will save you and your business considerable time and cost compared to manual calculation and capturing.
In addition to the EMP501 Reconciliation Report, Sage Pastel Payroll & HR offers you the ability to import a file containing employee income tax reference numbers from SARS e@syFile. These income tax reference numbers would have been generated by SARS during or after the 2013/2014 PAYE filing season and returned to the SARS e@syFile application as part of the bulk registration process.
Step-by-step instructions to ensure a successful submission
Follow these steps to ensure that your PAYE Reconciliation for the period 1 March 2014 to 31 August 2014 is submitted successfully before the end of the interim submission season.
- Complete your payroll processing for August 2014 and make a backup of your data.
- Process a Pay Period Update for August 2014 after making a backup.
- You will need to download and install Sage Pastel Payroll 2015 Update 3.
- Generate the IRP5/IT3(a) Exceptions Report and correct any errors listed on the report.
- Run the IRP5/IT3(a) Electronic Certificates to create the export file for SARS e@syFile.
- Print the EMP501 Reconciliation Report from 1 March 2014 to 31 August 2014.
- Download and install the latest version of SARS e@syFile from www.sarsefiling.co.za
- Import the electronic certificates generated on Sage Pastel Payroll 2015 Update 3 into the latest version of SARS e@syFile.
- Capture the EMP501 Reconciliation Report printed on Sage Pastel Payroll 2015 Update 3 on the latest version of SARS e@syFile.
- Submit your PAYE Reconciliation before 31 October 2014 to prevent unnecessary penalties.
Latest SARS e@syFile version
Ensure that you download and install the latest SARS e@syFile Employer version 6.5.2 in order to upload and submit your electronic IRP5/IT3(a) tax certificates and EMP501 Reconciliation Declaration for the period of 01 March 2014 – 31 August 2014. Click here to download the latest e@syFile version.
SARS Interim PAYE Submission Guides
Our Interim PAYE Submission Guides will assist you in correctly processing your Interim PAYE Reconciliation due to SARS from 01 September to 31 October 2014.
2014 Interim PAYE Submission Guide: Sage Pastel Payroll & HR
Click here to download the 2014 PAYE Interim Submissions Guide.
This guide details the easy-to-follow instructions to assist you in completing your mid-year EMP501 Reconciliation in good time.
IRP5/IT3(a) Exception Errors Guide
Click here to download the IRP5/IT3(a) Exception Errors Guide.
This guide outlines the errors you may encounter on the IRP5 / IT3(a) Exception Report and provides solutions on how to clear the exceptions.