As an employer, there are a number of different tax deadlines you need to meet. Next up, the Employer Annual Reconciliation which starts 1 April and ends 29 May 2016. This is for the period 1 March 2015 to 28 February 2016.
What is it?
In 2014, the Employer Tax Incentive (ETI) was implemented to encourage private employers to employ young workers and receive a tax incentive. Qualifying employers can now claim ETI and reduce their PAYE. The Employer Annual Reconciliation is a process whereby an employer is required to submit accurate reconciliation declarations (EMP501 and EMP601/701, if applicable) to SARS.
What do I need to do?
- Use eFiling (for 20 IRP5/IT3(a)s or less) or e@syFile™ Employer (for 20 IRP5/IT3(a)s or more) to submit your declaration.
- Import your Employee Tax Certificates from your current payroll system.
- Reconcile your EMP501 and enter any manual data, monthly liabilities, payments, and Employment Tax Incentive (ETI)
- Make sure your reconciliation submission balances. This means matching all tax due with all tax paid, and then checking these against your total value of tax certificates issued. These three amounts should be equal.
- Ensure all relevant data has been submitted (see this link for specifics: Business Requirement Specification: PAYE Employer Reconciliation).
- You can also look at this guide from SARS that will take you through the reconciliation process step-by-step.
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