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Known Issue: ETI Validation Tool applying COVID rules in the 2021 calendar year

Update (7 July 2021)

A patch has been deployed on this system to fix this issue. You can refer to the What's New document for more information

Original Post (9 June 2021)

We are aware of the following known issue on the ETI Validation tool on Release 5.6a/b

Description of Problem:

For any year other than 2020, the Covid-19 ETI tax relief measures should not be applied in calendar month 4, 5, 6 and 7 (April, May, June and July).

Currently the ETI Validation tool applies the 2020 Covid-19 ETI tax relief measure rules for month 4, 5, 6 and 7 in the 2021 year (April 2021, May 2021, June 2021, and July 2021), which is incorrect.

Important: ETI values calculated on the payroll should be correct, based your ETI setup.

The problem described above is only applicable if payroll administrators ran the ETI Validation tool and imported the incorrect data onto the payroll, in any period after March 2021.

Solution:

A new ETI Validation tool will be released for the 2021 calendar year. Please ensure that you have activated your Sage City profile for email notifications regarding News, Announcements and Alerts.

What will happen if you ran the tool and imported the adjusted values?

  • The ETI Validation tool would have applied the calculations based on the COVID rules for April, May June, and July 2021 incorrectly.
  • The ETI Validation tool does not increase ETI values. It will therefore not increase the ETI values, as declared on the EMP201 submissions to SARS.
  • The ETI Validation Tool can however decrease ETI values, if deemed to be incorrect.
  • SARS [email protected] will reject Set 3 in the 2022 tax year during the mid-year submissions.

What if payroll administrators have already run the tool and imported the incorrect values?

  • When the 2021 version of the ETI Validation tool becomes available, run it again, evaluate the calculated values and amend if needed and then re-import the correct values.

Customers who want to use the ETI Validation tool without waiting for the latest version, must review the period sets and values. Do not change values according to the Covid-19 ETI tax relief measure rules.

Amend the Excel sheet before creating the import ETI file.