Employers are required, twice a year, to reconcile their IRP5 and IT3(a) tax certificates, as well as the EMP201/EMP501 statements and the actual payments made to SARS. SARS has imposed high administrative penalties for EMP501 submissions that are late, inaccurate or that do not balance. Therefore it’s critical for the submission preparation to be managed proficiently. Fortunately, technology can help with this.
Gary Epstein, MD of EasyBiz Technologies, outlines the need for bi-annual submissions and how technology can help streamline the process.
For companies to comply with SARS’ requirements, a bi-annual tax reconciliation and submission is necessary. The EMP501 reconciles the payroll data of tax that the employer deducted from the taxable remuneration of each of its employees, together with the amount of tax that has been paid to SARS by the employer on behalf of employees. It also records the required Employment Tax Incentive (ETI) claims for applicable employees during the respective reconciliation periods.
Due to an increase in queries received by SARS along with audits on PAYE and the highly regulated Tax Administration Act, having an automated payroll software system is no longer a luxury, but a critical part of the daily function of any business. An automated payroll software system will streamline all payroll processes, including the bi-annual reconciliation requirements, leaving business-owners extra time to focus on the growth of their enterprise.
An automated software system such as Quick Payroll is affordable, accurate and user-friendly – from paying employees to accessing and generating monthly third-party submissions. Most importantly, the software is SARS-compliant with all the latest payroll legislation, so there is no need for concern about changes in legislation affecting employees.
Quick Payroll includes the following features:
● Allows up to 10 users, and from 10 to an unlimited number of employees
● Free telephonic and email support (as long as you pay for your ALF)
● Legislative and product updates
● An unlimited number of transactions for different rates of normal and overtime pay
● Import or export transaction values for use in batches e.g., Excel
● Assistants (Wizards) in the software for easy setup and processing
● EFT bank transfers to all the major banks in South Africa
● Various password protection levels
● Weekly/fortnightly/monthly pay periods across single or multiple companies
● Special (additional) payroll Runs
● ‘What if’ pay slip calculations
● Automatic accrual of leave days due
● Automatic leave pay-out calculations on termination of employees
● Automatic calculation of Basic Condition of Employment Act (BCEA) leave rates per employee.
The bi-annual reconciliation and submission to SARS can be a time-consuming and labour-intensive operation that, if not done correctly, can result in penalties due by the company. With an automated payroll system such as Quick Payroll, this essential process can be easily accomplished, leaving companies more time to focus on the success and growth of their business.