Extension of PAYE Deferment and Interim Employer Filing Reminder

There has long been a question mark over whether the Government is going to extend the duration of the 35% PAYE deferment to support the ongoing challenges that businesses face. We had been waiting for the release of the Government gazette to confirm this, but as it is now 7 September we want to inform you of the possibility that your PAYE liability may be reduced on this month’s Statement of Account from SARS.

In the blog post today we’ll explain what this extension would mean and change, as well as providing you with a brief reminder of the upcoming employer interim reconciliation period.

35% PAYE Deferment Update

In addition to the Government’s announcement extending COVID-19 TERS (covered in this blog post), they are now also expected to extend the 35% PAYE deferment to include the month of August. This might mean when you complete your monthly filing today, the amount of PAYE you have to pay in your monthly EMP201 return may automatically be reduced by 35%. EMP201s should be generated and submitted as normal on SimplePay, with the full amount of liability stated, then SARS will reduce the amount owed by the corresponding amount.

The value of this additional month’s deferred payment will be added to the values of the previous months. The repayments for the deferred PAYE liability will be spread equally across 6 months, with the first payment being due on 7 October 2020 and the last on 5 March 2021.

Mention of the extension can be found on this SARS page, dated 28 August.

Employer Interim Reconciliation Reminder

The submission period for the 2020 / 2021 employer interim reconciliation period opens on 14 September. During the reconciliation period you need to submit your EMP501 return and employee IRP5 / IT3(a)s, consolidating the period of 1 March to 31 August 2020.

Staying true to our ongoing commitment to make your payroll obligations a breeze, SimplePay automatically generates these forms for you, with all the latest legislative changes already incorporated.

You can complete the filing process using eFiling if you have less than 50 employees, or alternatively with [email protected] for any number of employees. You might also be able to complete the process in branch by prior arrangement, but we would encourage you to use one of the online methods. More on [email protected] can be read on this page.

We hope that you have found the above information useful. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]  

If you are not yet a client of SimplePay but would like to be, Why not try out our service on the house? You can sign up for your free 30-day trial here. Get to grips with our user-friendly service by reading our getting started page, or trying our free online course. Concerned about cost? Don’t be; we’ve simplified that too – check out our pricing page. Alternatively, you can request a formal quote if you need one here.

Keep well and stay safe.

Team SimplePay

Interim Filing Season Now Open

The Interim Employer Reconciliation filing season with SARS is now open and ends on 31 October 2019. The interim reconciliation covers the six-month transaction period from 1 March to 31 August 2019, and the final annual reconciliation in April/May 2020 will cover the full tax year.

During the reconciliation process, you are required to submit an EMP501 return confirming or correcting the amounts declared for PAYE, SDL, UIF and ETI, as well as the payments made. This ensures that your EMP201 submissions are correct and up-to-date. In addition, failure to complete the interim reconciliation means that you will forfeit any ETI credits that have overrun in the first 6 months and will therefore not receive any payouts for this.

Remember that SimplePay automatically generates the IRP5s / IT3(a)s and EMP501 needed for bi-annual filing with SARS. SimplePay also automatically incorporates any new legislative changes, such as new codes or tax rules, simplifying the filing process for you.

The reconciliation process can be completed using [email protected] (recommended) , eFiling (for less than 50 tax certificates), or at a SARS branch (for less than 5 certificates). Version 6.9.7 of [email protected] was released today, 23 September 2019. You can download it here and read up about the changes incorporated in the latest update
here. Please remember to back up your current information on your computer before installing a new version of [email protected]

For more information about the bi-annual filing process, refer to this help page. We also have a useful guide to take you through it step by step. The guide contains an important checklist which will help you eliminate unnecessary validation errors when trying to upload files to [email protected]

If you have any queries or need any assistance, please contact our support team.

Team SimplePay

Issues and Other Matters Arising From New eFiling

Please take note of the following issues and other matters regarding SARS eFiling:

(1) Consolidated Profiles

SARS is consolidating profiles where payroll administrators or individuals have more than one profile on eFiling.

For payroll administrators, SARS is now authenticating all existing users and migrating them to one single profile.

Individuals with multiple profiles will be required to choose a primary login from a list after logging into eFiling with any one of the profiles. Once the primary login is chosen, the indivdual must link the other logins as “Portfolios” to his/her profile.

See the following resources for more information:

Manage your user profile (paragraph 7.2 onwards)

Guide to the Auto Merge Function

(2) SARS eFiling Portfolios

The role in which you act is referred to as the SARS eFiling Portfolio. Only Tax Practitioner and Organisation portfolios can have multiple tax entities loaded on SARS eFiling, while Individuals cannot. Therefore, if you are a SimplePay client that does payroll for multiple firms, you should use the Organisation portfolio.

The 3 types of Portfolios referred to above can be defined as:

  • Individual: A person acting on his/her own behalf for his/her own taxes
  • Tax Practitioner: A Tax Practitioner that is registered with a recognised controlling body, acting on behalf of another tax paying entity and authorised by a signed Power of Attorney.
  • Organisation: A person acting as a representative of a tax paying entity, either as a representative taxpayer or as an appointed representative with a signed Power of Attorney.

(3) Tax Certificates not Pre-populating for Individuals

An error occurs on SARS eFiling under certain circumstances when an individual completes his or her ITR12 (Income Tax return):

  • When completing an ITR12, the tax certificate information is pre-populated in the annual return. However, when the individual saves the return and then requests a calculation, the “Creation wizard” defaults the “Unemployment” questions as YES, and the tax certificate that was linked is unlinked and is no longer available.

SARS is working on this issue. The workaround to re-link the tax certificate is:

  • The user must set all questions relating to unemployment as NO in the “Creation wizard”
  • SAVE the return, and then
  • REFRESH the DATA.

However, this will have the effect that the user must complete all the relevant information.

Team SimplePay

Tax Return Submissions Are Open

The 2019 tax season officially starts on 1 August 2019. However, if an individual makes use of eFiling or the MobiApp to complete their tax return, they are now able to do so, as filing opened on these platforms on Monday 1 July 2019.

Legislation requires that all employees receive a copy of their IRP5/IT3(a) after the tax year ends in February. This should now have been done, whether in digital or hard copy format. Employees can retrieve their tax certificates themselves via self-service on SimplePay, if this function has been made available by the payroll administrator. For more information on this, refer to our help page here.

Individuals should also take note of the following information:

  • SARS has revealed a new look eFiling website, which will hopefully improve the filing experience. For an optimal experience with eFiling, SARS recommends that a web browser should not be older than the following:
    Chrome v41, Firefox v55, Edge v13, Safari v10 or Opera v55
  • This year, if an individual meets ALL of the following criteria, then they do not need to submit a tax return:
    • Total income from employment for the year before tax is less than R500 000. This was raised from R350 000 last year.
    • Employment income should be received from ONE employer for the full tax year, and NO OTHER EMPLOYER.
    • There should be no other form of INCOME earned (e.g. car allowance, business income, and rental income, taxable interest or income from another job)
    • The individual doesn’t have any additional allowable tax related deductions to claim (e.g. medical expenses, retirement annuity contributions and travel expenses).

If there is uncertainty about whether a tax return is required, this can be checked using this SARS tool.

Team SimplePay

2019 Employer Annual Reconciliation Filing Season

The 2019 Employer Annual Reconciliation filing season will soon be opening on 17 April 2019 (it is usually 1 April but has been delayed due to system upgrades at SARS). You have until 31 May 2019 to submit your Annual Reconciliation Declaration (EMP501) for the period 1 March 2018 – 28 February 2019 to SARS.

SimplePay automatically generates the IRP5s / IT3(a)s and EMP501 needed for year-end filing with SARS and these are available under the Filing section of the menu. Submissions of your EMP501 can be done via eFiling or the [email protected] application. You may need to update your [email protected] application to the latest version, 6.9.4. This can be done here. Please remember to back up your current information on your computer before installing a new version of [email protected]

For more information about the bi-annual filing process, refer to this help page. We also have a useful guide to take you through it step by step. The guide contains an important checklist which will help you eliminate unnecessary validation errors when trying to upload files to [email protected]

As always, please feel free to contact us at [email protected] if you have any questions.

Team SimplePay

2018 Employer Annual Reconciliation Filing Season

The 2018 Employer Annual Reconciliation filing season is now open. SimplePay automatically generates the IRP5s / IT3(a)s and EMP501 needed for year-end filing with SARS and these are now available for the 2018 filing season.

You will have until 31 May 2018 to submit your Annual Reconciliation Declaration (EMP501) for 1 March 2017 – 28 February 2018 to SARS. This can be done via eFiling or the [email protected] application. You may need to update your [email protected] application to the latest version, 6.8.3. This can be done here. Please remember to back up your current information on your computer before installing a new version of [email protected]

For more information about the bi-annual filing process, refer to this help page. We also have a useful guide to take you through it step by step. The guide contains an important checklist which will help you eliminate unnecessary validation errors when trying to upload files to [email protected]

In preparation for this filing season, we have done some system updates to further simplify the process for you:

  • Pre-validation updates:

We have added additional pre-validation measures to identify data errors are before filing with SARS.

  • Consolidated IRP5s / IT3(a)s

After liaising with SARS, we have updated the way we generate tax certificates for employees who are terminated – any information on once-off payslips created after their termination date are added to the tax certificate generated for their service period if the once-off payslip date falls in the same tax year.

As always, please feel free to contact us at [email protected] if you have any questions.

Team SimplePay