Employer Reconciliation Process – Beginning of 60-day period – 2011 Tax year

4 April 2011 was the start of the 2011 Employer Reconciliation Period. If you fail to submit by the deadline, a 10% penalty of the total Employees’ Tax paid for the year will be levied by SARS. From 4 April to 3 June 2011, all employers must prepare and submit their annual employer’s reconciliation for their employees’ IRP5s and PAYE/SDL/UIF paid during the February 2011 tax year.

Here are 4 basic steps to assist you with the 2011 process:

  1. Capture all relevant information on your electronic payroll system
  2. Collate all data to reconcile the monthly EMP201 returns and payments thereof with the employees’ IRP5/IT3(a) certificates
  3. Identify any payments/certificates that do not form part of the 2010/2011 tax year
  4. Ensure all employee data (eg ID numbers, contact details, banking info and tax reference numbers) is up to date and correct.

Updates of the latest SARS E@syfile program is available on the SARS website (http://downloads.sarsefiling.co.za/easyfilehome/easyfile.html). Alternatively CD’s of the programme are available at your local SARS office.

Please also note that with effect from the 2012 reconciliation year, SARS has indicated that they would require quarterly reconciliations – there are indications that the compulsory use of the SARS E@syfile program will be enforced by SARS at this stage.

Should you like us to assist you with this process (either at your offices or directly on your behalf), please contact Juanita Roman by no later than 21 April 2011.

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