You are required to process your staff’s wages and salaries at the agreed regular interval and to deduct the correct amount of PAYE and UIF from each employee.
SARS requires all employers to complete and submit a declaration of PAYE, UIF and SDL deducted each month. In addition, a reconciliation of these declarations with a summary form is required twice a year.
- The monthly declaration is known as an EMP201 and must be submitted to SARS by the 7th of every month.
- The bi-annual declaration is known as an EMP501 and must be submitted to SARS in October and May every year.
When the February EMP501 reconciliation is submitted to SARS the employer is required to issue an IRP5 tax certificate to each employee as well as SARS. An IRP5 tax certificate is a summary of the employee’s income, benefits and deductions for the year, including the PAYE and UIF.
What do you need to process payroll information?
You can opt to do the calculations manually, however it makes much more sense to use a payroll package that is designed for this purpose.
In order to submit your monthly EMP201 returns you will have to be registered as an employer on SARS e-filing. The return will be completed and submitted online and you can also pay online as soon as you have lodged the form; so no more late payment penalties and interest.
In order to submit the EMP501 returns and IRP5 tax certificates you will need to be registered as an employer on SARS Easyfile.
How and why Meredith Harington can make your life easier by assisting with Payroll
- We’re geared for it. We have the programmes and use them regularly.
- We perform payroll services for a number of our clients so we have the knowledge and experience that will ensure your payroll is done efficiently and in a cost effective manner.
- You’ll have no need to use clumsy tax tables any more.
- We can calculate your leave pay and bonus’ quickly and easily.
- We can calculate travel and subsistence allowances in the most tax efficient manner.
- We’ll prepare payslips for you to issue to your employees.
- You don’t have to fuss with SARS when you have payroll queries – we know SARS well and we know the best channels to use.
- You don’t have to deal with the headache of remembering when you need to submit returns or certificates – we’ll contact you.
- Did you know that SARS can issue garnishee orders? It is called an IT88 and we can assist with these.
- Payments can be done quickly, easily and without worry. And you still maintain control.
- In the long run, it will save you time and money.
What happens if you get it wrong?
- SARS have recently embarked on a new initiative with the National Prosecuting Authority to prosecute non-compliant tax payers who have failed to submit returns. Tax payers who are found guilty will end up with a criminal record.
- Late or non submission of payment attracts a 10% penalty based on PAYE / UIF / SDL due.
- As an employer you could be held liable for payment of an employees PAYE.
- Non submission of IRP5’s could mean that you/your employees are not able to submit tax returns, which in turn will attract penalties.
If you still choose to do it on your own…
- Know that you can call us anytime for assistance with SARS e-filing and Easyfile.
- We can come out to you and give you a crash course.