Tax Filing

The Tax Filing Season Is Here

It is that time of the year again; tax filing has officially begun.

Employers need to finish collating additional information required by SARS in the 2010 Employer’s Filing Season as the deadline is 31 March 2010.  As of 1 April 2010 employers need to start submitting their EMP501 Reconciliation Declarations as well as their IRP5/IT3(a) tax certificates. The submission period ends exactly 8 weeks after it has started i.e. 31 May 2010.

With regards to submissions and tax filing, there are a few important things to take note of. We have listed them below.

Start date for submissions: Companies can only start submissions from 1 April 2010 and not earlier.

e@syFile: There is a new version of e@syFile. When doing submissions, employers should use the latest version of e@syFile. If they use the older version their submissions will not be accepted. The new e@syFile software can be downloaded from the SARS website from the 1st of April.

Method of submissions: Submissions must be made on the SARS website using eFiling or should be handed in on a disk.

Issuing employee tax certificate: It is very important that companies can only print and issue IRP5/IT3(a) tax certificates to their employees after electronic IRP5/IT3(a) tax certificates and EMP501 Reconciliation Declarations have successfully been submitted.

Automated payroll solutions: If your company utilises an automated payroll solution you only have to capture your employees’ information and pay slips. During the year the system will automatically generate electronic tax certificates in a file. These files can then be imported directly into SARS e@syFile. Manual completions of PAYE, SDL and UIF Reconciliations can also be done by printing an automated EMP501 Reconciliation Report. This saves businesses valuable time.

Tax reference numbers: If an employee’s earning salary is less than R60 000 he or she does not have to apply for a personal income tax reference number and consequently not required to submit any information. If an employee receives more than R60 000 income per annum he or she must apply for an IT Reference Number which can be obtained by completing the IT77 form along with the supporting documentation.

The new version of e@syFile conveniently simplifies the process of tax filing: As of 1 September 2010 employers can verify their employees’ income tax numbers and register employees who have not yet applied for an income tax number.

Tax Relax is a registered tax practitioner based in Gauteng and would like to take the stress out of your tax filing by providing professional assistance. Call us today!

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