With the introduction of additional Employment Tax Incentive relief during 2020, multiple software updates and required changes being implemented by the payroll administrator, we understand that many have found it difficult to reconcile their ETI easily.
The Interim Reconciliation submission to SARS fast approaching, we encourage all customers who claimed ETI in 2020 and 2021 to reconcile their ETI as soon as possible.
What you need to know
ETI claims for the first 6-month reporting period, March 2021 to August 2021, must be finalised no later than 7 September 2021 (before the submission of the August 2021 EMP201 submission to SARS).
Release 5.7a will become available early September, which will include IRP5 changes and the 2021 additional ETI relief measures. Please check and reconcile your ETI before installing Release 5.7a.
Note: Should you not update to Release 5.7a before submission of the August EMP201, then you will not be able to claim the ETI relief for August 2021 at a later stage, as the claim for August will fall outside of the first 6-month reconciliation cycle.
What you need to do
Should the following scenario apply to your payroll, please click to read further.
1. You’ve made use of the ETI Validation tool to extract and update employees ETI during tax year ending February 2021 and did not manually import the updated ETI data into the new tax year. To ensure that your ETI Period and Set in the current tax year has been carried forward correctly from the previous tax year end system into the live payrolls, find the steps of what you should do here.
2. You cannot wait for Release 5.7a and must continue with processing your September payroll, but you still want to claim the additional ETI tax relief for August 2021.