Avoid penalties - The SARS Interim PAYE Reconciliation Period Starts
December 16, 2013 Business News(PRLEAP.COM) Johannesburg, South Africa - All South African companies are required to reconcile and submit PAYE, UIF, SDL contributions for the period of 01 September 2013 – 31 October 2013.
"It is critical for companies to ensure that they download and install the latest version of SARS e@syFile before reconciling. Companies are advised to back-up their current information on their computers prior to installing a new version of e@syFile Employer, as the installation may delete the current information," says Philip Meyer, technology director at Sage Pastel Payroll & HR.
Another important requirement for companies is to comply with the new legislation pertaining to employees making use of company vehicles leased by their employer. Meyer says the fringe benefit value is the rental contract plus the fuel cost for the month. However, the rental contract must be classified as an operating lease.
Income tax reference numbers are another important element in returns. Companies can only submit tax certificates to SARS if each employee has an income tax reference number. Submissions in which one or more tax certificates do not have the mandatory individual income tax reference number specified will not be accepted by SARS.
Companies using an automated payroll software solution can obtain employee tax reference numbers via the bulk ITREG functionality and the e@syFile Employer system to simplify the reconciliation.
Attention should also be paid to new source codes in the event that the employer pays a lump sum to the family of a deceased employee. The first R300 000 of the lump sum is tax free, but the portion exceeding R300 000 is taxed by way of a SARS directive and the lump sum must be reported against code 3922. The PAYE on the lump sum must be allocated to code 4115.
Softline was founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen. The company was established during the formative years of the business software industry in South Africa and soon became the leader in the provision of business software and services to small and medium sized companies. In 2003 Softline was acquired by UK based company, The Sage Group plc. Softline officially changed to Sage in February 2013 to align with our parent company Sage Group plc. We continue to provide local expertise backed by the global Sage brand.
About The Sage Group plc
Sage Group plc is a leading global provider of business management software to small and medium sized companies, creating greater freedom for them to succeed. Sage understands how and why each business is unique. We provide products and services that suit varying needs, are a pleasure to use and are secure and efficient. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and entered the FTSE 100 in 1999. Sage has over 6 million customers and more than 13,380 employees in 24 countries covering the UK and Ireland, mainland Europe, North America, South Africa, Australia, Asia and Brazil.
About Sage Pastel Payroll
Sage Pastel Payroll offer user-friendly, easy-to-use Payroll and HR software that caters for those businesses just starting out as well existing businesses and aims to support the growth of the company and develop partnerships with clients. Sage Pastel Payroll & HR is committed to providing a comprehensive payroll solution and provides unrivalled support and online payroll tools. For further information please visit, www.pastelpayroll.co.za.