VDW Group

Employer Annual Reconciliation

Employers are required to submit their Pay-As-You-Earn (PAYE) Employer Annual Reconciliations between 18 April and 31 May 2016 to SARS, confirming or correcting payroll tax amounts which were declared during the 2015/2016 tax period.

This year, employers are urged to accurately verify and update each employee’s personal and financial details before submitting their Annual Reconciliation Declaration (EMP501) and Employees Income Tax Certificates [IRP5/IT3(a)s] to SARS.

Should these details be incorrect on an IRP5 certificate, the employee will be unable to file his/her Income Tax Return for Individuals (ITR12) during Tax Season. Individuals will no longer be allowed to make any corrections to pre-populated IRP5 details on their returns.

In cases where details are incorrect, employees will have to revert to their respective employers who will need to make changes on the IRP5 and re-submit these to SARS. This process can be time consuming and it may become problematic for employees to file on time.

Employers play a very important part in the income tax cycle which effectively starts on 18 April with the submission of the annual reconciliations. We rely on your cooperation to make the submission of ITR12s later in the year as stress-free as possible for all involved. Need help? Call the SARS Contact Centre on 0800 00 7277.

Why is SARS discontinuing the use of a Debit Pull transaction on eFiling?With debit pull a taxpayer or their approved representative may authorise SARS to collect the money owed directly from their bank on their behalf, which means that SARS is initiating the collection directly from their bank. SARS does so by instructing the bank to collect the amount from the taxpayer’s bank account. There are several problems associated with this:
•There are risks associated with this product in that payment is not guaranteed and can be reversed at the request of the client and can also be rejected due to insufficient funds
•SARS is unable to validate that the person authorising SARS to initiate the debit pull is mandated to do so which can result in payments being withdrawn from incorrect accounts. SARS could be placed at risk as a result of such unauthorised actions.
Very importantly it is in the interest of the client to not allow unauthorised withdrawals from their accounts.

All, be on the lookout for efiling scam emails.

Just received one notifying me of a refund, but need to click on the link to verify bank details.

Don’t be caught by this type of mail.

Here are a few tips to help you complete and submit your return easily, honestly and on time:
- If you have forgotten your login and password: Simply click on the question mark icon on the login page and you will be able to reset your login and password.
- Need help eFiling? Help-You-eFile is here! Get instant access to our friendly Contact Centre staff while you are eFiling your return! Simply click on the Help-You-eFile icon on the login page and follow the prompts. It’s like having your very own SARS consultant helping you every step of the way.
- On the go? Try our mobisite or App! You can choose to complete and submit your Tax Return (ITR12) not only via your PC or laptop but even via your mobile phone (if it has web browsing capabilities). Simply go to sarsefiling.mobi. If you would like to use our App, download it from the App Store for iPhone 4, 4S, 5, iPad 2 and higher and from Google Play for Android phones and tablets.
- Don’t just save your return – submit it! eFiling allows you to work on your return and to save your work until you are ready to submit. But saving your return does not mean it has been sent to SARS! Your return will only be submitted when you click the “File Return” button and your profile is updated to show the return has been submitted. So, if you’ve not received your ITA34 Notice of Assessment, it means you haven’t yet submitted your return.
- Be honest about the information you give SARS: It is an offence to fail to declare all your income on your tax return as well as to misrepresent your allowable deductions. This can cost you very stiff penalties or worse! Make sure you are completely honest on your return.
- Do it on time! We’d hate for you to miss the deadline and get a penalty! Please make sure you submit your return on time:
• Non-provisional taxpayers using eFiling have until Friday 22 November 2013
• Provisional taxpayers using eFiling have until Friday 31 January 2014.

Two important tax deadlines fall on January 31, the SA Revenue Service (Sars) said on Wednesday.

The first deadline was for the submission of 2012 income tax annual returns (ITR12) by "provisional" taxpayers who use the e-filing system, it said in a statement.

Provisional taxpayers are people who receive an income other than a salary.

The second deadline is for the payment of outstanding assessed tax by taxpayers who filed their returns on e-filing.

The Reserve Bank will maintain current interest rates, governor Gill Marcus said on Thursday. It would leave the repo rate unchanged at 5.0% after a surprise 50 basis point rate cut in July. The prime lending rate is currently at 8.5%.

Sunday, 1 July 2012 marks the start of Tax Season 2012.

As from this date you can begin to submit your Income Tax return to the South African Service (SARS).

Send your accounting-related questions to our Accounting Helpdesk at [email protected] – and get an answer in 72 hours

For home office expenses to constitute allowable deductions, they must meet these requirements:
1. NOT be of a capital nature (e.g. maintenance, rates and taxes and wear and tear on office equipment qualify);
2. Be directly related (and limited) to the part of house used for the purposes of trade (i.e. the office part only);
3. This part of the house must be used regularly and exclusively for the purposes of the trade. This means that setting a desk up in the corner of your dining room, and calling it your “home office” during the day, won’t cut it!
4. If your trade is a form of employment, the income, which you receive, must be mainly (i.e. 50% +) commission, and your employer doesn’t provide you with an office to carry out your duties (hence, your home office).

1 April - 31 May: Employers Tax Season

Please take note that the maximum value for which a cheque can be written will be reduced from R5 million to R500,000 with effect from 16 July 2012.

Effective 1 March 2012 the medical scheme contribution deduction will, for taxpayers aged below 65, be replaced by a medical scheme contribution tax credit, in an effort to achieve greater equality in the treatment of medical expenses across income groups.