The deadline to submit your PAYE recon, aslso known as the EMP501 is 31 May 2022.
What is a PAYE recon?
This is the process where the amount of PAYE deducted monthly and paid over to SARS is reconciled. This is to ensure that all the amounts deducted from employees is paid over to SARS.
During this process, when the EMP501 is submitted, IRP5 certificates have to be issued for every employee. These certificates then have to be issued to every employee.
What information does the IRP5 certificate need to contain?
The certificate needs to contain all income the employee has received. This includes the salary, all other benefits and contributions made by the employer. It also need to contain all deductions made by the employer towards pension funds, retirement funds and medical aids. Also, it needs to show the amounts deducted for PAYE, SDL and UIF. The IRP5 certificate also needs to show the number of months which the employee has worked. Read more about EMP501.
It is very important to submit this recon, as the employees have to use it to submit their personal income tax returns. Failing to submit the return will also attract penalties for non or late submissions.
Since January 2022, SARS have been problems with keeping up with their turnaround times.
How does this impact you?
The result of this is that everything takes longer to be finalized. This includes VAT audits, income tax audits, appointment of public officers, disputes etc.
Unfortunately, there are a lot of processes to follow when SARS fails to stick to their turnaround times. The first step is to escalate the case number. After this, you need to wait again for SARS to act. The next step is to lodge a complaint with the SARS complaints department. Only after all of these processes have been completed, can a complaint be lodged at the SARStax ombudsman.
This causes a lot of frustration for both tax practitioners and taxpayers. And the result of this is that it can take months to finalize a case.
If you need assistance with a case like this, do not hesitate to contact us.
In layman’s terms, workmens compensation, also known as COIDA, is an insurance policy. The policy is in place to protect employers in the event where an employee is injured on duty.
The company has to be registered at the department of labour.
COIDA returns and tariffs
Every company needs to submit a return every year in May. The tariffs are set annually by the department of labour. The amount payable is then calculated according to the salaries paid by the company.
Letter of good standing
Only once the return has been submitted and the payment made, will the department of labour issue a letter of good standing.
When an employee has been injured while performing his work duties, it must be reported to the department of labour immediately. They will then issue an authorization code which can be used to take the employee to a private medical institution.
When you have registered a new company, a public officer has to be appointed at SARS. This needs to be done before the tax profile of the company can be added on eFiling. This is the case with private companies and non profit companies. The public officer will be the director of the company. In the event where there is more than 1 director, only one director will be appointed as the public officer.
The following documentation is required to appoint a public officer:
ID copy. When it is an ID card, copies of both the front and back is required.
Proof of banking details for the company. Internet bank statements with an electronic bank stamp is acceptable.
A letter where the director accepts the role as public officer.
Copy of the COR14.3
Together with this, a selfie of the director is required. When the selfie is taken, the director has to hold his ID in his one hand and a paper in the other hand. On this paper, the following has to be written,” Please update my eFiling security details”, with the current date. The following documents are accepted as proof of address. Read the latest SARS updates here.