Yesterday Minister of Finance, Trevor Manual, launched the new tax season and announced some important changes for both employers and employees as far as PAYE is concerned. These include a simplified reconciliation process, changes to which employees need complete tax returns, and new software.
A SIMPLIFIED PAYE RECONCILATION PROCESS
The IRP501 reconciliation processed has been amended to precede the issuing of IRP5's. This new form (now called the EMP501) will be available for download from www.sarsefiling.co.za or from your nearest SARS branch from 1 July 2008. The EMP501 allows you to calculate any difference between the total value of the tax certificates you issued, your total annual declared liability (as per your monthly EMP201s) and your total payments to SARS - which simply results in a credit amount to be refunded or debit amount to be settled with SARS.
Employers have until June 30 to start preparing for these changes, Companies then have a 60 day window period from 1 July to 29 August 2008 to submit employer PAYE deductions to SARS. Employers who do not comply by 29 August 2008 are likely to face strong penalties.
CUSTOM-BUILT SOFTWARE
SARS has developed custom-built software which allows you to complete the entire reconciliation process easily and electronically! This SARS e@syFile software will be compatible with all major payroll systems and will be available for download from www.sarsefiling.co.za or from any SARS branch from 1 July 2008. 1 For those of you who prefer to work manually, SARS has also simplified the manual process including new IRP5 booklets which you will also be able to download or collect them from a SARS branch from 1 July 2008.
FOR EMPLOYEES
Employees cannot receive or submit their tax returns to SARS until employers complete their PAYE declarations to SARS. The payroll information from employers to SARS will allow SARS to issue the majority of taxpayers with a pre-populated return that already contains the income they have earned.
For individuals, the filing period for returns opens on 1 September 2008. Individuals must request a return from SARS and can do so from 1 September 2008. The deadline for the manual submission of returns is 21 November and the deadline for electronic submission of returns is 23 January 2009.
SARS said that certain individuals with income below 120,000 rand a year who have a single employer and source of income and who meet certain criteria, will not have to complete and submit a tax return to SARS.
Their details and income stream will be automatically captured by the new process, SARS added.
SARS said it will not issue or mail any returns to taxpayers this year. It will send letters to all registered taxpayers to explain why it is important that taxpayers notify SARS of changes to their addresses, SARS said.
Taxpayers will have to request a return from SARS from 1 September 2008 by calling the call centre, by visiting a SARS branch office, via SARS eFiling, or by sending SARS a request for a return. A form for this purpose will be attached to the letter to taxpayers.
Twigg Payroll Solutions....call Wayne or Debbi on (033) 3307333 to discuss how we can tailor a solution to meet your needs and budget!
Leave a comment