Can you believe we are already in the sixth month of the tax year?

As from next month, SARS will require employers to submit their EMP501 reconciliation for the first 6 months of the tax year either via e@syFile or eFiling.

Details of the reconciliation period has not been published as yet, but the submission period usually runs until the end of October 2018. Click here to view the PAYE page on the SARS website.

Here are a few tips to assist you during August to prepare your payroll for the submission as from next month:

• Your payroll version must be either on Release 5.0a or 5.0b (to be compatible with the Release 5.1a update coming in September 2018)
• Validate your company information on the Basic Company Information Screen - all reference numbers and submission details must be correct
• Ensure the 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 are setup correctly - taxability and IRP5 codes play a vital role on your payroll
• Validate your employee information - SARS requires employers to provide the most updated and correct contact and bank details, as well as be registered for a tax number
• Generate the EMP501 History report on a monthly basis, and reconcile with payments on eFiling. This makes it easier to identify any irregularities or issues that might have changed your final payroll values
• Print the Negative YTD report (available during Start of Period process), and ensure you do not have an y 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 2018. Click here to view a guide on this valuable report
• If you have updated to Release 5.0b, you can print the Reimburisve Travel History report to identify exceptions. Click here to read more
• You can print the IRP5/IT3a Validation report on Release 5.0a or 5.0b, you may however receive error referring to "Gross remuneration linked to IRP5 not equal to total taxable income". The error message is due to new IRP5 codes introduced in March, however the IRP5/IT3a report itself will be updated and in line with the software released in September - the error can be expected but in some instances, could refer to incorrect taxability and IRP5 codes. Most validation errors with possible solutions can be found on the Customer Zone Knowledge Base. Click here for a guide how to search the Knowledge Base

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

Release 5.1a for Sage VIP and Sage 200c VIP will be available early September, and will contain all the relevant changes to the IRP5/IT3a reports according to the SARS Business Requirement Specification  (PAYE BRS 17.2) User will be notified via e-mail and on the Sage City forum once the update software is available.

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