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SARS Employee's Tax Return / Reconciliation / Declaration
Employers must submit to SARS a Tax Return of their remuneration paid to, and taxes deducted from Employees, generated using SARS's EasyFile program. This requires entering data manually into EasyFile which can be very time consuming and frustrating, or importing it from a file generated by a reputable Payroll program.
TAX RETURN REQUIREMENTS
- Presently two such returns are required every year.....
++ a Mid-Year provisional Return covering the 1st 6 months of the Tax Year, to be submitted to SARS by the end of every October. Although a pain, is it a good practice-run to identify problems, and prepare for the Year End final Return which should then just be a mere formality. IRP5's are not printed at this stage.
++ a Year-End return covering the full 12 months of the Tax Year, due by the end of every May. IRP5's must be printed at this stage, and handed to Employees.
- It is advisable to obtain Tax Reference numbers for all your employees and incorporate them into your Payroll Program and/or EasyFile program, as SARS has threatened to start raising penalties where this information is not provided.
- Also, take the effort and ensure that the employee’s banking details are also incorporated into your Payroll Program and/or EasyFile program, because this will in due course also become a requirement.
REMUNERATOR PAYROLL SOFTWARE USERS.
FOR THE MID-YEAR TAX RETURN
Set aside data of the 1st 6 months of the year in the August 'Month-End-Procedure', .
Users of the REMUNERATOR payroll software must remember as part of the August Month End Activities, to tick the checkbox "Copy YTD to YTDpart" before clicking the "Run Month-End Procedure" button. This sets aside the data to the end of August in the YTDpart Data Period, which is to be used to generate the CSV file containing the Income and Tax information, that is imported into the EasyFile program for generating your Tax Return.
FOR ALL TAX RETURNS
Generate the CSV Tax File.
In the "Tax Matters" main menu, select "Generate Tax Reports" sub menu.
- In the "Generate for period" dropdown box select .....
++ "CY" if you want to generate the Tax File for Current Year
++ "YTDpart" if you want to generate the (Mid-Year) Tax File as set aside per the above section.
++ "PY" if you want to generate the Tax File for the (whole of the) Previous Year
- In the "Up to Month No." dropdown box, select .....
++ "08" when generating the Mid-Year Tax File.
++ "02" when generating the Current or Previous Year Tax File
- Accept the default "TEST" in the dropdown box, to generate initial figures
(Once you have resolved all errors generated by Easyfile when importing the above Tax File, change this selection to "LIVE".)
- Click on the "Generate Tax File" button, which will ......
++ generate a Tax File (REM_TaxReport.txt) in your current data folder.
(This is the file that you must select once in EasyFile, from which the data generated by the Remunerator program is imported.)
++ print a Tax Report, giving some useful information pertaining to the Tax File generated.
*** Make sure that the First and Last Dates for each Employee is correct, otherwise will incorrect data be sent to SARS!!!
*** Of particular interest is the "PAYE Actual (deducted & paid over)" column vs. the "PAYE Calculated" column. These figures should be similar, unless there is a good reason why either more or less PAYE had been deducted from the Employee during the period.
For guidelines to import into EasyFile, and generate the Tax Return, see seperate page "SARS - EasyFile Tax Return generation".
Please note, this is not a comprehensive note of the requirements, but merely intended as a guideline.
For any questions, can you contact the SARS call-centre at 0860 12 12 18
Pierre Leon Myburgh