1 September 2016 – Employer Mid-Year Reconciliation

1 September 2016 – Employer Mid-Year Reconciliation

Employers are required to submit an EMP501 confirming or correcting the amounts declared for Pay-As-You-Earn (PAYE), Skills Development Levy (SDL), Unemployment Insurance Fund (UIF), and Employment Tax Incentive (ETI) in their EMP201s submitted, the payments made and the tax values of the Employee Tax Certificates [IRP5/IT3(a)].

The interim reconciliation is for the six-month transaction period 1 March to 31 August and must be submitted during September and October.

For the 2016 Employer Interim Reconciliation the following legislative and system changes should be noted:

  • From 1 March 2016 contributions to Pension, Provident and Retirement Annuity Fund is deductible for payroll taxes
  • New source codes (3817, 3825, 3828) have been created to differentiate between Pension, Provident and Retirement contributions and new source code (4582) to indicate the total value “remuneration” portion where the source codes allow a 20/80 split
  • Medical expenses tax credit for people over 65 years who are still employed have been introduced
  • New source code(4120) has been created  to capture the additional medical expenses tax credit for employees over 65 years
  • Taxpayers will be able to submit a request for correction in relation to audited periods after the audit has been completed. Audit outcomes will be communicated to taxpayers via listed email on SARS records, posted letters will only be sent to taxpayers who do not have an email listed under their profile
  • EMP 501 has been updated to enable employers to print both EMP 501 and IRP5/IT3 (a) as a package. There is also an option for taxpayers to write the postal address in their preferred unstructured format
  • e@syfile Employer enhancements include an upgrade to Windows 8, and bulk printing of IRP5/IT3(a) certificates
  • Capturing of an EMP 201 return prior to 1999 will be allowed.