Submitting your EMP501
Remember that the deadline for PAYE recons (EMP501’s) is 31 October 2020 for companies with a February year end.
All companies who deduct PAYE from their employees have to submit one to SARS.
Contact us for more detail.
Month:
September 2020
How to get a tax clearance certificate?
You can obtain a tax clearance certificate from SARS. This certificate simply means that all your taxes are up to date. It also indicates that you have no money outstanding on any of your tax accounts.
How long is a tax clearance certificate valid for.
SARS has also changed the format of the tax clearance certificates. The certificate now contains a code which will be used to verify the certificate. This certificate is valid for up to one year, with condition that the tax compliance status is kept up to date.
Please contact us for more information regarding tax clearance certificates.
When is the tax deadline?
Remember that the tax deadline for individuals is 16 November 2020, and for individuals who submit provisional tax is 29 January 2021.
SARS is encouraging taxpayers to submit their returns via eFiling, to reduce the traffic at their offices. As well as to speed up the process.
Contact us to submit your return.
When to deduct PAYE for employees
Have you ever wondered when to start deducting PAYE for your employees? The answer is quite simple.
SARS makes use of PAYE tables to determine from which amount and how much PAYE should be deducted. The current amount, from 1 March 2020 is R7 479. This means, that when you have an employee that receives R7 479 or more per month in salaries, the company should register for and deduct PAYE. This amount is then paid over to SARS on a monthly basis. This also means that the employee should be provided with an IRP5 every year.
PAYE tables
Click here to get a copy of the SARS PAYE tables.
Who needs to submit an income tax return?
In order for you not to submit an income tax return, you have to comply with the following conditions:
- Income for the year was less than R500 000
- Income was only received from one employer, ie only one IRP5 received.
If you had any of the following forms of income, you have to submit an income tax return:
- Trading as a sole proprietor.
- Received a travel or subsistance allowance.
- Capital gains or losses totaling R40 000 or more.
- Held funds in foreign currency or assets exceeding R225 000 at any stage during the year.
For more information, contact us now on email.
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EMP501 – PAYE recon
The deadline to submit the first PAYE recons for the 2021 financial year is 31 October 2020.
The EMP501 is where employers have to reconcile the employee tax they deducted from employees to the amounts that were paid over to SARS. With this PAYE recon, IRP5’s are generated, but not handed over to the employees.
Contact us for more information.
About Us
We are a group led by a registered tax practitioner. With over 10 years experience in income tax and accounting, you can be assured that you will get the best advice and service.
We are situated in Garsfontein, Pretoria, but can serve clients country wide with the help of modern technology.
Contact us today for more information.
