Urgent Payroll matters to be actioned in April and May 2017

Apr 21, 2017 | Taxation Blog

There are a few important payroll related matters to be actioned during April and May 2017:

  1.  W.As.8 Return of Earnings 2016 – due to Department of Compensation by 31/05/2017

The 2016 W.As. 8 Return of Earnings for Compensation for Occupational Injuries and Diseases Act (COIDA) submission deadline is 31 May 2017. (This relates to the payroll tax year 01/03/2016 – 28/02/2017).

Please note that the 2016 assessment period is open for transacting on the ROE website from 1 April 2017.

If you are unsure whether your entity (as the employer) must register for Workmen’s Compensation, please read our blog.

2.    Increase of Unemployment Insurance scale of Benefits

The Increase of the scale of benefits of the Unemployment Insurance Act has been legislated – previous annual limit of R148 720 increased to R178 464 with effect from 1 April 2017 – please note that the Act which regulates the UIF contributions has yet to be amended to increase the contributions due for UIF.

3.   Get ahead of the rush – Annual EMP501 February 2017 reconciliation opened 18 April 2017 – deadline is 31 May 2017!

All employers must prepare and submit their Annual EMP501 declaration (EMP501) and employees’

IRP5’s to SARS reconciling the PAYE/SDL/UIF paid during the tax year 01 March 2016 to 28 February 2017

SARS is urging employers to accurately verify and update each employee’s personal and financial details before submitting the annual EMP501 and providing their staff with the 2017 IRP5/IT3 certificates.

Employees will no longer be able to amend any pre-populated information on their personal Income Tax returns with SARS which will delay submission of their returns until rectifiedThe only way to rectify any incorrect pre-populated SARS details would be for the employees to advise their employers to make changes on the IRP5/IT3 data and re-submit these to SARS. This process can be time consuming and it may be difficult for employees to submit their returns on time.

SARS Income Tax numbers for all employees (regardless of income level) are part of the mandatory information required by SARS – submission of the Annual February 2017 IRP5/IT3 certificate without the mandatory information will be seen as incomplete information and penalties will be levied by SARS (even if submitted before the deadline).

Do not forget about the Employment Tax Incentive (ETI) to be included in the reconciliation submission!

Use the following steps to ensure correct and timeous submission:

1.       Use latest version of SARS E@syfile Employer software
2.       Import the payroll files or create manual employee data
3.       Reconcile your EMP501 and correct errors
4.       Ensure correct submission before the deadline

Please note that manual disc submissions at SARS branch offices are no longer permitted.

Warning – Reconciliations which do not balance will be subjected to penalties being imposed by SARS!

Our outsourced payroll services ensure that we work with you to maximise your tax and payroll efficiencies and ensure that all your compliance requirements have been met! We can assist with all your UIF, Workmen’s Compensation and SARS payroll nightmares to save you both precious time and money.

Please contact Juanita Roman at our offices on 021 683 4834 by 5 May 2017 to schedule an appointment for in-house assistance to ensure that you meet your payroll obligations effortlessly.

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