Paymaster Magazine

8 Steps to Completing the 2014 Tax Year Submission Process.

HOW TO RECONCILE?

Reconciliation involves matching all tax due (liabilities) with all tax paid and checking these against the total value of all tax certificates issued. These three (3) amounts should all be equal. The reconciliation process only relates to the tax paid and not additional tax, penalties or interest.

 3.3 RECONCILIATION STEPS FOR EMPLOYERS:

 Step 1

Before completing the EMP501 (for interim and annual submission), determine the total income of each employee for that year and recalculate the tax based on that amount. IRP5/IT3(a) certificates should reflect the income, deductions and tax as calculated at this point.

 Step 2

If the recalculated liability according to the tax certificates is different to the EMP201s previously declared, it will need to be determined in which month(s) these differences occurred.

Step 3

Capture all the relevant demographic information in the Business Information and Contact Details sections.

 Step 4

Capture all the monthly liabilities for PAYE(before ETI deduction), SDL and UIF using these revised figures in the Financial Particulars section on the EMP501 (i.e. where different, the liabilities inserted on the EMP501 should be the final calculated liabilities rather than the liabilities declared on the EMP201).

Step 5

Capture the total monthly payments made in respect of PAYE, SDL and UIF but excluding payments made in respect of interest and additional tax. These are the actual payments made to SARS throughout the year – no recalculations needed.

Step 6

Calculate the totals and difference fields (If using e@syFile™ Employer simply click on the self’assess button in order to populate all the totals and difference fields for you).

 Step 7

Employers must calculate the SDL and UIF totals and capture the values. If the SDL and UIF contributions are not on the certificates this value must be calculated and completed.

 Step 8

When settling any shortfall reflected in the reconciliation, the payment must be allocated to the period(s) in which the shortfall occurred. If the relevant period cannot be determined, the payment should be allocated to the last active period within the transaction, which is August (interim) and February (annual).

 



We can handle the entire submission process on your behalf.

We simply will require the following from you :

  • A breakdown of all of your PAYE, SDL and UIF payments per month between March 2013 and February 2014.

Contact Ian Hurst now on Ian@paymaster.co.za for a price list

Adrian Baillie-Stewart

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