2010 Changes made to IRP5s and the Filing process.

Several changes to current legislation governing tax submission have been made that will essentially expand the influence - and enhanced operation of the South African Revenue Services (SARS). These changes – which include additional information required on employee tax certificates for the February 2010 reporting period - have been established to assist SARS in the future administration of the country’s National Social Security. In addition to the fact that the tax submission form is now two pages and not one, other changes facing tax payers include:

• Period of reconciliation for employers will be twice a year in the 2011 tax year. The view is that in the years to come, reporting will take place every quarter. (Individuals will still submit their returns once a year)

• The electronic tax certificates imported into SARS E@syFile must include an Employer Trade Classification code.

• Employer and Employee Addresses must be submitted using the following format:

• Unit Number
• Complex Name
• Street Number
• Street/Farm Name
• Suburb/District
• City/Town
• Postal Code

• Everyone has to have an Income tax reference number and therefore, must be registered. (This will only be applicable in September 2010)

• Tax certificate numbers must be 30 characters long and must consist of the following components:

• Employer’s PAYE Reference Number
• Tax Year
• Unique combination of 16 characters

• Nature of Person codes have been amended:

• Code M – Foreign Employment Income (no longer in use)
• Code K – Personal Service Trust (no longer in use)
• Code H – Personal Service Company (renamed to Personal Service Provider to include Personal Service Trusts)
• Code N – Pensioner (new code)

• Contact Telephone Numbers are required for each employee.

• Business and Residential Address details are mandatory for each employee.

• Employee Bank Account details are required for employees not paid in cash.

• Total UIF and SDL contributions must be included on each employee tax certificate.

• You can find a comprehensive view and all the changes on the blow link:

 PAYE 2010 Quick Guide for Employers

What you should do / How to prepare

Step 1  - Stay informed - Remain clued up on any legislation changes and any news updates regarding your payroll.

 Step 2 - Collect as much information as possible from your employees before the Employer Filing Season 2009/2010 commences on 1 April 2010

Ensure that the details that you have loaded for each employee are correct and available on file. This includes residential and postal addresses, contact information, banking details and INCOME TAX REFERENCE NUMBER per employee.

• Employee Surname and First Two Names
• Employee ID Number
• Employee Date of Birth
• Employee Income Tax Reference Number
• Employee Contact Telephone Number – Home, Business, Fax or Cell
• Employee Residential Address
• Employee Bank Account details

Step 3 - Do the IRP5 Reconciliation Process (Starts only 1 April 2010)

Please download guide here

Employers step-by-step guide to PAYE reconciliation 

                       
What to expect for 2010

• New EMP201effective 1 March 2010. 
   

You can download the new EMP201 guide on the link below:

PAYE 2010 - EMP 201 - A Guide for employers to the new monthly declaration process  

• Introduction of bi-annual reconciliations.

• Submit and reconcile PAYE, UIF, and SDL via E@syFile for 6 months –August/September 2010.

• Submit and reconcile PAYE, UIF, and SDL via E@syFile for 12 months –April/May 2011.

• XML (Extensible Mark-up Language) format replaces CSV tax certificates.
  
  

Dates to Diarise