Last week I touched on some of the requirements that an employer would need to work through in terms of the payroll and the tax year end pertaining to 2010. Here are some more requirements that I came across during my research.

The following information needs to be captured for each employee (where possible):
• Employee Surname and First Two Names
• Employee ID Number
• Employee Passport Number and Country where the passport was issued
• Employee Date of Birth
• Employee Tax Reference Number
• Employee Contact Telephone Number – Home, Business, Fax or Cell
• Employee Residential Address
• Employee Bank Account Details.

Once all this information is loaded and captured the Year End Procedures can be dealt with. These are (but not limited to):

• The whole year’s pay slips, for each individual employee, need to be added together and all the source codes for each employee should also be grouped together
• As a ‘balance check’ the PAYE, UIF and SDL should be recalculated per employee, per month for the year. These figures should then be compared to the monthly EMP201’s and all the payments made to SARS to ensure that they are correct.
• Again as a ‘balance check’, all the values on the monthly EMP201’s should be added together and compared to all the monthly payments that were made to SARS and they should match. These amounts should also match the total tax amounts as they appear on the IRP5’s and the EMP501. Should there be any discrepancies or differences these should be shown on the EMP501 reconciliation and if necessary they should be paid across to SARS. For your own records (and in the event of a SARS audit), you should keep a written explanation as to what occurred when these discrepancies took place.
• Once everything is reconciled all the information should be captured manually into the SARS e@syFile. This must include the information pertaining to each employee as well as the tax certificate values, and this should then be submitted to SARS.

That’s enough information to digest in one go – next week we will continue with the next step of the requirements.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za

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