Bi-annual PAYE Reconciliation Season open! (EMP501 and IRP5/IT3 certificates)
Spring does not only bring blooming flowers, radiant sun and new life! No, it also means the filing season for the submission of the bi-annual PAYE reconciliation opened on the 1st of September 2011, with the final deadline being the 31st of October 2011. It is imperative to note that SARS have indicated that stiff penalties and interest for late or incomplete reconciliations will be imposed.
Please note the following:
The IRP5 and IT3 certificates issued for the period March – August 2011 will be submitted to SARS only (these certificates are not to be issued to employees)
There are certain mandatory fields required to complete and submit the reconciliation – accurate and complete information is needed on each employee. The mandatory fields are:
- Full names and surname of employee
- Employee’s ID or passport number
- Employee’s physical and postal address
- Employer’s address and contact details
- Employee’s dates of employment in the current financial year
- Employee’s complete breakdown of salary/wages received for the year
- Employee’s Income Tax Reference Number
- Employee’s bank account details
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. A potential penalty will be imposed on the employer for non-submission of the reconciliation form, equal to 10% of the total amount of employees tax deducted from the remuneration of employees during the tax year.
Speak to us now to assist with your bi-annual reconciliation on your behalf. The clock is ticking and we want to help you avoid penalties!
