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

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

Travel Allowance Updates Effective March 2018

As of the 2018/2019 tax year, the treatment of travel allowances where employees are reimbursed per kilometre travelled for business has changed. 

Previously, the travel allowance was not taxable on the payslip, irrespective of the amount per kilometre reimbursed. However, the travel allowance may have been taxed on assessment.

From 1 March 2018, if an employee is reimbursed at a rate above the prescribed rate, the portion above the prescribed rate is taxable on the payslip. The prescribed rate for the 2019 tax year is R3.61 per kilometre.

There are no changes to the way that you capture the reimbursement on a payslip on SimplePay. We aim to keep you compliant with SARS and therefore SimplePay has been updated to take these rules into account. The system will automatically split the travel allowance into the taxable and non-taxable portion, based on your inputs.

Please note that due to this change, the reporting codes for reimbursive travel allowances used on the IRP5 have also been updated by SARS.

For more information on this, refer to the following help page.

Tax Certificates Now Available via Employee Self-Service

At SimplePay we strive to create value for you by meeting your payroll needs in a simple and easy manner. With that in mind, we are thrilled to announce the launch of a new feature to make the tax year-end even easier for you – employees can now view their tax certificates via the self-service function.

This means that you can release IRP5s/IT3(a)s to your employees at the end of the tax year at the click of a button. Employees will be informed via email that their tax certificates are available on their employee self-service. You can also attach a PDF of their tax certificate in this email. Please note: you can only release final year-end IRP5s/IT3(a)s to employees i.e. interim IRP5s/IT3(a)s for the first 6 months of the tax year cannot be released to employees.

Please see the following help page for more information on the steps to enable and use this function.

Team SimplePay

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.