Just 42 days to go for 2011 Interim ‘Mid Year’ Employer Reconciliation

Further mandatory information on the employee’s IRP5 now includes:

  • Employee work and residential addresses (in specified SARS format)
  • Employee banking details (i.e account number and branch codes)
  • ID numbers for RSA citizens and passport numbers in other cases (including country of origin)
  • Employee contact numbers and email addresses
  • Tax reference numbers for all employees who qualify to submit annual income tax returns (optional in mid-year EMP501 but mandatory in 2011)
  • Employer’s information to now include contact person, contact details, both physical and postal addresses and trade classification

Penalties levied by SARS for late and/or non-rendition of this mid-year EMP501 would be 10% of your total PAYE liability for the submission period!

The actual IRP5 or IT3(a) certificates are not given to the employees now – this is only done after the year end EMP501 reconciliation (February 2011) has been finalised.

Updates of the latest SARS E@syfile program are available on the SARS website (click here to download). Alternatively CD’s of the program are available at your local SARS office. SARS has also issued a document containing FAQ’s regarding the Reconciliation process (click here to download).

Please note that with effect from the year ending 28 February 2012, SARS have indicated that they would require quarterly reconciliations and that the compulsory use of the SARS E@syfile program will be enforced by SARS at that stage.

Our payroll systems provide accurate monthly payslips and reports required for the monthly/annual statutory returns (EMP201 and WCA), including electronic IRP5’s at the end of the tax year for your employees – no manual calculations required!

Should you like us to assist you with this process or enquire about our automated payroll solutions, please contact Juanita or Lizette by no later than 30 September 2010.

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