It is that time of the year when employers need to put their tax matters in order. As we are all aware, tax compliance by all businesses and employers – whether small, medium, or large – contributes largely to economic growth and the development of our country.
Therefore, employers are urged to comply with the Employer Interim Reconciliation period in these tough economic conditions. This will inevitably make a difference to the fiscus.
This year, the Employer Interim Reconciliation for employers’ filing season started on September 18, 2023 and will end on October 31, 2023. During this period, all employers in both private and public enterprises must reconcile their Monthly Employer Declarations (EMP201), including Pay-As-You-Earn (PAYE), Skills Development Levy, and Unemployment Insurance Fund for the first six months of the reconciliation year (1 March 2023 to 31 August 2023).
There are specific things that employers need to adhere to, to make things easier for them and remain compliant. These include the list below.
Employers’ obligations
- Employers, tax practitioners and payroll administrators must download the latest e@syFile™ employer version, 7.4.0 updated on 18 September 2023. This can easily be done via SARS eFiling at www.sarsefiling.co.za.
- Employers must import the electronic Employee Tax Certificates [IRP5/IT3(a)s] CSV files from their current payroll system.
- All employers must capture all additional manual IRP5/IT3(a)s, and e@syFile™ employers will use the information from all the tax certificates to automatically calculate the certificate totals for your EMP501.
- Finally, employers must enter their monthly liabilities, payments and Employment Tax Incentive (ETI)information, if applicable, and e@syFile™ employer will calculate the rest.
Submission channels
There are now various platforms available to make submissions.
- Employers with 1 to 50 employees can use SARS eFiling or SARS e@syFile™.
A tax certificate file can be generated from the payroll system and imported into SARS eFiling.
- Employers that file EMP501s for more than 50 employees must use the e@syFile™ employer.
- An exception is made for employers with a maximum of five (5) IRP5/IT3(a)s. The employer can still go to the nearest branch where an agent will help them capture these IRP5/IT3(a)s and the EMP501. Remember, it is essential to book an appointment before visiting a SARS branch.
SARS has come up with easy steps for employers and other taxpayers to book an appointment.
To book an appointment at SARS, you can:
- Go to the SARS homepage at www.sars.gov.za and select the eBooking online system.
- Dial *134*7277# and select the Book an appointment option; or
- Call the SARS Contact Centre on 0800 00 7277 and select option 0 (zero) to book an appointment with a SARS official.
Employers’ responsibilities
It is imperative to submit your accurate reconciliation before the 31 October 2023. This will help to avoid penalties and interest.
Employers are encouraged to ensure that their CIT, VAT and PAYE registration numbers are merged on the eFiling system. This will make it easier for SARS to engage with you and provide a more efficient service.
It is important to note that employers must deduct employees’ tax from their remuneration and pay tax to SARS within seven days after the end of the month during which the amount was deducted.
If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.
*This content was supplied by SARS.
