As part of our continued effort to always keep you compliant and signal potential issues which may affect your business, we noted a recent issue which warrants this blog post.
The information in this post is aimed at employers who may have facilitated donations by employees to the Solidarity Fund, between 1 April and 30 September 2020, via their payroll.
Last week SARS released updated software to enable the filing season of individuals and trusts that commenced on 1 July 2021.
As part of the testing cycle during the release, it was discovered that [email protected] incorrectly processed EMP501 source code 4055 data, which relates to employee donations to the Solidarity Fund through their respective payroll systems.
SARS has apologised for the error and will be taking steps to have the issue resolved and the errors corrected.
Resubmission of EMP501 data
To address the issue, it will be required that affected employers resubmit their EMP501 data to SARS. Resubmitting the data is the only way that SARS will be able to recognise the donations by employees for tax purposes during the upcoming filing season. It is essential that donations to the Solidarity Fund are reported on the tax certificate against code 4055.
SARS has urged all affected employers to resubmit by Friday 9 July 2021 to enable them to process the data successfully.
If you have any queries about this or are unsure if you are affected, please call the SARS Contact Centre on 0800 00 7277.
Should you have any questions regarding SimplePay or any of our services, please feel free to contact [email protected] for assistance.
In a previous blog post, we discussed the opening of the 2021 employers filing season which runs from 1 April to 31 May 2021 and many employers should now have submitted or be in the process of finalising their filing for 2021.
An important point to note concerning your filing is that SARS requires that employers be consistent in the submission channel used to submit their EMP501 reconciliation and tax certificates for a particular filing period. For example, where an employer submitted their EMP501 reconciliation through SARS eFiling for the August 2020 interim submissions, the employer must not revise their first submission through SARS [email protected], or vice versa.
As part of the filing process, SARS will recalculate the PAYE and SDL payable for each employee from the amounts which are reported on the submitted tax certificate.
SARS will then compare the amounts they calculated against the PAYE and SDL amounts that are stated on that tax certificate where there are any significant differences between the two amounts, SARS will issue an error report with details of the tax certificates that have differences.
These error reports will be sent via the same channel that the employer used to submit the EMP501 and the tax certificates. For example, where an employer has submitted their EMP501 reconciliation through SARS eFiling, the error report will be sent to them via the SARS eFiling portal only and will not be accessible via other means.
Re-submission of Tax Certificates
In line with the above principle, corrections to the certificates must only be resubmitted using the same channel that was used for the initial filing.
Changing Submission Channels
You will have the option to use a different submission channel for the next filing period but must again be consistent during that filing period in making use of the same channel for any resubmissions.
If you have any questions on how the information provided in this blog relates to SimplePay, you can contact us at [email protected]
Keep well and stay safe.