Filing Reminder and TERS Update

In the blog today we are writing to remind you about both the interim employer reconciliation and the individual income tax return deadlines, in addition to an update on COVID-19 TERS. Both of the filing submission periods are now open and we recommend that you complete your submissions in good time to avoid any complications.

Employer Interim Filing Season

This year the employer interim reconciliation submission period will run between 14 September and 31 October 2020. Within this period you will need to submit your EMP501 return and your employees’ IRP5 / IT3(a)s to consolidate the period between 1 March and 31 August.

As mentioned in our previous blog post, SimplePay automatically generates these forms from your previous submissions, with all the latest legislative changes taken account of. All you need to do is log onto [email protected] or eFiling and submit the required forms. It really is that easy!

Manual Individual Income Tax Return 

If you have already completed SARS new auto assessment process in August, as covered in this blog post, then you have already met your obligations and don’t need to do anything further. This reminder applies to you if you rejected or did not receive an auto assessment from SARS, but need to complete an individual income tax return.

If this is you, the submission period for individual income tax returns is between 1 September and 16 November 2020 if you are filing online. You can log into eFiling or the SARS Mobi App to complete your manual return.

COVID-19 TERS Update

The past few weeks have been challenging for the UIF with respect to COVID-19 TERS. The audit carried out showed a number of shortcomings in the validation steps for applications, which led to various misallocations of funds. As a result payments were halted on 11 September and access to the TERS portal was down over the past weekend to maintain and improve the process’s safeguards. The resumption of the payouts is yet to be announced, but we shall endeavour to let you know when this happens.

An additional point of note is that for those that meet the application requirements, TERS benefits have been extended to 15 September. The application deadline for this period is 30 October, after which no new applications will be accepted.

For all other application periods i.e. March to 15 August, the deadline for new applications is 17 September.

Update 16 September: The closing dates for new have been changed  as follows:

 New applications for March to end of May the deadline is now 25 September 2020. 

New applications for June the deadline is now 15 October 2020.

New Applications for July to 15 September the deadline is now 30 October 2020.

The media statements on the audit findings can be found here and the announcement of an extension to COVID-19 TERS can be found here.

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

Equally, 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

End of Week Blog: 14 August

As we approach the halfway point for the month of August, today’s blog post will be looking at recent  COVID-19 TERS announcements, updates from SARS and a recap of some of our recent blog posts.

TERS Update

On 12 August, the Department of Employment and Labour announced that the opening of TERS applications for July / August will be on Monday, 17 August. This followed the Minister signing a Directive on the application of TERS for these months.

The Directive states that for the July / August period, applications can be made for employees whose employers are:

  1. not permitted to commence operations under the Disaster Management Regulations; 
  2. unable to make alternative arrangements for vulnerable works, (e.g. working from home or taking special measures); or are
  3. unable to make use of their employees’ services, due to restrictions to the permitted active workforce, caused by compliance with Directions and Regulations, such as staggered working.

The application process should be the same as for the previous months, with proof of disbursements to employees being required if you are selected to act as a conduit, in addition to the bank verification process.

To read the Directive, its explanatory memorandum, or an updated set of FAQ’s for the upcoming application process, you can visit this Department of Labour webpage

Reminder: Employer Interim Reconciliation Submission

The interim employer reconciliation period which runs between March and August ends this month, meaning that you will need to submit your EMP 501 and IRP5s / IT3(a)s next month. The submission period opens on 15 September and concludes on 31 October.

[email protected] BETA Testing

SARS is currently running final tests on the latest version of [email protected] in time for Employer Interim Reconciliation in mid-September.

Enhancements will include:

  • New source codes on the IRP5 to incorporate the legislative changes 
  • New letters regarding Remittance of Penalties and Interest, Notice of Non-Compliance Penalty 
  • Amended letters regarding excessive liability changes on the Employer Reconciliation, Employment Tax Validation, Notice of Assessment 
  • Amendment of PAYE dashboard 
  • Upgrade of the BETA Testing site 
  • Resubmission of rejected EMP501 reconciliation 
  • Time out while downloading a new version of [email protected] Employer 
  • New summary report of all certificates included in the EMP501 Reconciliation 
  • Synchronisation of eFiling and [email protected] Employer logons 

We are incorporating all the new codes and tax rules to our system, meaning that come September you can automatically generate the IRP5s / IT3(a)s and EMP501 needed, and submit them to SARS. Easy as that!

NEW FEATURES AND UPDATES

PAYE vs Income Tax

We have changed the labelling of Pay As You Earn (PAYE) on payslips from “Tax” to “Tax (PAYE)”. If you’d like to know more about our reasons for us doing this and the differences between the various forms of income tax, take a read through our blog.

Family Responsibility Leave

We have updated the name of Compassionate Leave to Family Responsibility Leave on SimplePay, to align our site more strongly with the Basic Conditions of Employment Act. You can read more about this in our blog post.

Self-Service Employee Claim Request

We’ve expanded our self-service features to allow employees to claim expenses, travel allowances and custom items of various input types.

If you’d like to opt-in for these new and expanded features, you can find out how and read more about them here.

Employee Filtering Revamp

Having had requests to switch up how you’d like to be able to filter employees on SimplePay, we’ve listened and made some changes. You can read about our newly introduced and adapted filters in our blog post from 4 August.

RECAP

Easing of Tourism Restrictions

On 30 July, we updated you on the new rules for the tourism industry under level 3 of lockdown. You can read more about these relaxations here.

Business Turnaround and Recovery Programme

The Business Turnaround and Recovery Programme is aimed at intervening to help companies in distress or decline to re-strategise and put their business back on to a profitable trajectory.

If this sounds an interesting prospect, you can read more about the eligibility criteria and how to apply in our blog post.

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]  

Equally, if you are not yet a client of SimplePay but would like to be, or if you’d like to know how we can take the effort out of filing and calculating payroll, get in contact with us or visit our website.

Keep well and stay safe.

Team SimplePay

Annual Employer Reconciliation Period Deadline

With 31 May just around the corner, this blog is a friendly reminder that the Annual Employer Reconciliation Period deadline is fast approaching. As mentioned in our blog on 8 May, all the necessary changes were made to the SimplePay site at the start of this month, so all that is left is to jump in and complete your IRP5/IT3(a)s!

As mentioned in this previous blog, SARS has rolled out the Employer Tax Validation system for the first time, which will cross-check SARS calculated value for the SDL and PAYE amounts, with those submitted.

Despite the pandemic, SARS has made it clear that it will not be altering its policy on late submissions, meaning that if you do submit late, you could be subject to penalties of up to 10% the value of the payroll.

We hope that this information proves useful to you. If you have any queries on how the above relates to payroll and the SimplePay system, please feel free to get in touch with our customer support team at [email protected]

Keep well. Stay home. Stay safe.

TeamSimplePay

P.S. Individual Tax Returns: 

SARS has announced a delay in the deadline for Individual Tax Returns (ITR-12s) from its normal place in July, to September 2020. The online filing period for individuals in 2020 will prospectively run between 1 September and 16 November 2020.

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

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

August 2017 Employer Interim Reconciliation Filing Season

The August 2017 Employer Interim Reconciliation filing season is now open and you have until 31 October 2017 to submit your Employer Reconciliation Declarations (EMP501s) for the period from 1 March 2017 to 31 August 2017, in respect of the Monthly Employer Declarations (EMP201s) submitted, payments made, Employee Income Tax Certificates [IRP5s / IT3(a)s] and ETI, if applicable.

You can refer to the SARS website for news about this.

Remember that we have a help page about the bi-annual filing process, as well as a guide – to take you through it step by step.

Please pay particular attention to the checklist in the guide, which will help you eliminate unnecessary validation errors when trying to upload files to [email protected]

An updated version of [email protected] is already available, and it is very important that you use the latest version: 6.8.1. Please remember to make a backup of your current information on your computer before installing a new version of [email protected]

We are happy to inform you that we have already made all the necessary updates to the system that were required because of the changes SARS made for this filing season. You will now, once again, be able to generate an export file of your tax certificates on the Submissions tab and upload this file onto [email protected]

One notable change introduced by SARS is the increased reporting requirements for ETI, which include new and amended ETI source codes. Another consequence of the requirement for increased reporting on ETI is a slight change in the way tax take-on balances are captured – and some action might be required on your side.

When you do the pre-validation on our system (as described in the guide linked to above), you might get some IRP5 code errors – especially if you started using SimplePay after 1 March 2017 and if you already had employees who had qualified for ETI when you entered take-on balances.

Many of these IRP5 code errors should be resolved when you enter the additional ETI take-on information that SARS now requires. This should be done individually for all employees mentioned in the IRP5 code errors as follows:

  1. Go to the employee’s profile.
  2. Click on Take-On Balances under Actions on the right.
  3. Click on Edit Balances.
  4. Enter the monthly ETI Wage and ETI Hours information for the same months for which you had previously entered ETI Claimed and Remuneration information.
    • More information about ETI Wage is available here. Please note the distinction between remuneration and wage.
    • More information about ETI Hours is available here.
  5. Re-do the pre-validation and check that the IRP5 code errors related to ETI take-on information have been resolved.

As always, please feel free to contact us at [email protected] if you have any questions or need assistance in resolving the IRP5 code errors.

The SimplePay Team

2017 Employer Annual Reconciliation Filing Season

SARS has announced the dates of the 2017 Employer Annual Reconciliation filing season. This year it will run from 18 April to 31 May 2017.

Please note that this is slightly different from other years, where the filing season started on 1 April.

You will have until 31 May 2017 to submit your Annual Reconciliation Declarations (EMP501s) for the period 1 March 2016 to 28 February 2017, in respect of the Monthly Employer Declarations (EMP201s) submitted, payments made, Employee Income Tax Certificates [IRP5s / IT3(a)s] and ETI, if applicable.

An updated version of [email protected] should be available from 18 April 2017, so it is not advisable to attempt to do your filing before then. Please remember to backup your current information on your computer before installing a new version of [email protected]

Remember that we have a help page about this bi-annual filing process, as well as a guide – to take you through it step by step.

Please pay particular attention to the checklist in the guide, which will help you eliminate unnecessary validation errors when trying to upload files to [email protected]

You can also refer to the SARS website for news about this.

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

The SimplePay Team

SARS PAYE Reconcilliation 2015-08

Dust off your EMP501s, it’s that time of year once again.  The employer filing season opened officially on 1 September, with the deadline on 30 October 2015.  You will be reconciling figures for the period 1 March 2015 to 31 August 2015.  Please view our online help on this subject to ensure that everything goes smoothly.

It’s worth noting this time around that both version 6.6.2 and version 6.6.3 of SARS [email protected] can be used to submit your reconciliation statement (EMP501). If you’re using version 6.6.2 you’ll see a popup message asking you if you would like to update to version 6.6.3. Clicking ‘Yes’ will update [email protected] to the latest version, requiring a full back-up and restoring of data, while clicking ‘no’ will allow you to continue using the older version.

As always, please feel free to contact us if you have any questions.

Employer filing season starts on 01 April 2014

Important date to remember!   The employer filing season for EMP501 submission starts on 01 April 2014 and will run until 30 May 2014.  SimplePay has done the updates to comply with the new [email protected] layout.  Changes you need to know:

– The new SIC (standard industrial classification) codes have been implemented.  You can now setup your company with your specific industry information.

How to do this setup:

In your payroll, go to settings and select the ‘Employer filing details’ option.  You will be required to fill in the company information required by SARS, as well as the new industry classification codes.  Important, your SIC code needs to be 5 digits!  But don’t worry, SimplePay has already done most of the work, you just need to select the correct options!

If you would like more assistance in setting up your SIC codes, and also a help guide to do your annual reconciliation and submission, follow the below link to visit the help section.

The SimplePay team.