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.
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.
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.