South African employers are required to submit their EMP501 Interim Reconciliation for the first 6 months of the tax year, to the South African Revenue Auhority (SARS). 

Details of the reconciliation period has not been confirmed as yet, but the submission period usually runs until the end of October. Click here to view the PAYE page on the SARS website, for more details.

Here are a few tips to assist you during August, to prepare your payroll for the submission:

• The current payroll versions is on Release 5.2c, and you will be able to update your IRP5 codes to the new codes required for te 2019/2020 submissions. These include the codes for overtime, bargaining council levies, etc. Click here for more details. The new codes will be included in Release 5.3a as well.
• Release 5.3a is scheduled to be released mid-September 2019. There is also going to be new e@syFile software from SARS.
• Validate your company information on the Basic Company Information Screen - all reference numbers and submission details must be correct.
• Ensure the company date information of your company is correct - we recommend that you validate the dates of your system on the Period Info screen available on the Basic Company Information screen, where you will be able to confirm the processing period, tax year start and end dates, pay period in tax year, weeks in month etc.
• Ensure that all earning and deductions/company contributions definitions are setup correctly - taxability and IRP5 codes play a vital role on your payroll
• Validate your employee information is updated and correct - SARS requires employers to provide the correct contact and bank details, as well as be registered for a tax number.
• You can print the IRP5/IT3a Validation report to identify issues and do corrections where necessary. Click here for more details to print.
• Generate the EMP501 Reconciliation History report on a monthly basis, and reconcile with declarations and payments on eFiling. This makes it easier to identify any irregularities or issues that might have changed your payroll values. Click here for more details
• Reconcile ETI values claimed. ETI not utilised cannot be carried forward from August to September. The EMP501 History Report will assist you to reconcile the montly values, and the ETI Validation Report (Real Number 767 on Reports and Maintenance menu) can be printed each month.
• Print the Negative YTD report (available during Start of Period process, or under Reports > Audit Reports), and ensure you do not have any negative values per IRP5 code - the tax certificate specification does not allow negatives values, and will need to be corrected within the payroll, prior to September 2019. Click here to view a guide on this valuable report.
• Print the Reimburisve Travel History report to identify exceptions. Click here to read more

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Take note: You will not be required to make a copy system as you do at Tax Year End - the reports can be generated from the live payroll companies.