2012

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Employer acts as an Intermediary
Employer collects money from employee on behalf of SARS
Employer
(PAYE / SDL / UIF)
WHY PAYE!
GOVERNMENT
Allocation of
Revenue
Employees
 HEALTH
 SCHOOLS
 EDUCATION
 SECURITY
 INFRASTRUCTURE

E
M
P
L
O
Y
E
R
– PAYE AS YOU EARN & INCOME TAX
PAYE
PAYE RECON&PROCESSING APPLICATION / BFE /
EMPLOYER TAX REPOSITORY (ETR) / U3TM
RECONCILE
EMP 501,
CERTIFICATES
AND/OR EMP601
SUBMIT
INPUT CHANNELS
EXCEPTION
HANDLING
ATP
(Processing Layer)
VALIDATE
CAPTURING
STORE
IT
U3TM / FORMS REPOSITORY / EMLOYER RECONCILED
CERTIFICATES
PRE-POPULATE
INCOME TAX
RETURN
SUBMIT
INPUT CHANNELS
EXCEPTION
HANDLING
X
P
A
Y
E
T
A
R
IT/PAYE LINK
CASE MANAGEMENT
VALIDATION AND CONTROL
TRACKING
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WHAT IS RECONCILIATION
Reconciliation is a process to. . .
 Match taxes declared on monthly
EMP201s and the actual liabilities based on the IRP5s to be issued
 Understand the difference between actual tax liabilities and payments made to SARS
 Match back your actual liabilities to funds withheld from your employees
. . . which means you have to . . .
You need to start by knowing what you have declared and what you actually owe for the year
 Recalculate tax liability per employee
(actual liability)
 Compare with actual tax deducted o Correct differences
 Complete actual monthly total liability on EMP501 (not EMP201 amount)
You need to be able to work out how the total you have paid matches individual employee liabilities – for their IRP5s

WHAT RECONCILIATION IS NOT
Reconciliation is not . . .

Just a reconfirmation of the payments for the amounts declared on your monthly EMP201 forms
. . . which means . . .
 A reconciliation can be correct even if the balance identifies that you owe money or have a credit for the tax year
Note: It is possible you may have overpaid for the year, but submitting a refund may require careful documentation for this and prior years

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OVERVIEW OF PROCESS…
What does the employer do?
Run monthly payroll
• Run the monthly payroll to determine your current declarations and monthly liabilities
2
Submit monthly declaration and pay withheld liabilities
• Declare this liability on form EMP201 and submit it together with the payment to SARS by the 7 th of the month following the month of employee remuneration
3
4
5
Compute actual annual liability as per IRP5s to be issued
Match computed liability in step 3 to revised liabilities and payments – adjust errors
Submit the reconciled declaration
• Compute the actual liabilities for transactions in the 2009/10 tax year based on your annual payroll
– Imported as a CSV
– Manual certificates issued
• Remove liabilities/payments relating to prior year’s certificates
• Remove all payments relating to interest or penalties
• Reconcile actual declared liabilities & payments to certificates for this year and account for the differences
• Submit your signed EMP501 and associated payroll data to SARS by
30 May 2010
• Pay any adjustments owing to SARS
Note: Employer will be liable to pay any adjustment owing to SARS
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REQUEST RECON DOCS
ELECTRONIC FORMAT
e@syFile™ • e@syFile™ Employer is a software application that SARS provides to employers free of charge
• ability to complete your documents off-line
• ability to submit the data electronically or via electronic media
MANUAL FORMAT
Can be requested from SARS by visiting your nearest SARS branch office
Note: The manual reconciliation documents are currently blank forms with no pre-populated employer information

A
D
O
B
E
RECONCILIATION DOCUMENTS
The technology that has been defined as the standard for form development within SARS which include –
•EMP 501 – Employer Reconciliation Declaration
•Annual – full 12 months
(March – February)
•EMP 601 – Tax Certificate Cancellation Declaration
•IRP5/IT3(a) – Employee Income Tax Certificate
•EMP701 – Reconciliation Declaration Adjustment

EMP501
– Page 1
Enter all relevant demographic information
Ensure you Sign and Date prior to submission

EMP501
– Page 2
Enter a reason in the case of over/ understatement of declaration

EMP501
– Page 3
Enter your actual monthly liabilities
Enter the payment amounts (excluding payments in respect of other years of assessment, penalties and interest
Calculate the actual
IRP5 tax liability for the transaction year:
• Import payroll files
• Enter manual certificates
Calculate amount due by/to SARS. This does not have to equal to zero

IRP5/IT3(a)
– Page 1

IRP5/IT3(a)
– Page 2

EMP601

EMP701

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1
Easy File Electronic Reconciliation Process
What does the employer do?
Run monthly payroll
• Run the monthly payroll and import the csv file by clicking import on the easy file application
2
Successfully Imported
• Once the csv file has successfully imported , update the employer detail and proceed to the Declaration screen
3
4
5
Self Assess, Ready
Submit to SARS/ Electronic
Debit/ Credit to File
Result
• Once the declaration is completed, click on Self Assess, complete reason for over or under declaration
• Click on Ready to File and click OK
• Click on Submit to S ARS
• Select either Internet / E Filing or electronic medium
• Click Submit
• Pay any adjustments owing to SARS
Note: Employer will be liable to pay any adjustment owing to SARS
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1
Easy File Manual Reconciliation Process
What does the employer do?
IRP5/IT3A Certificates
• Create IRP5/IT3A certificates by clicking on View or edit employees
• Capture personal detail of employees and click on Save Employee
• Click on Add Certificate and capture the financial information on certificate.
2
Successfully Created
• Once the certificates has successfully been created, update the employer detail and proceed to the Declaration screen
3
4
5
Self Assess, Ready
Submit to SARS/ Electronic
Debit/ Credit to File
Result
• Complete the declaration , click on Self Assess, complete reason for over or under declaration
• Click on Ready to File and click OK
• Click on Submit to S ARS
• Select electronic medium, click Submit
• Save the Compressed zipped folder on a electronic device
• Print and sign a copy of the EMP501 and submit with the zip folder
• Submit at your nearest SARS Branch
• Pay any adjustments owing to SARS
Note: Employer will be liable to pay any adjustment owing to SARS
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19 e@syFile TM EMPLOYER

20 e@syFile TM EMPLOYER

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27 e@syFile TM EMPLOYER

EMPLOYER
RECON
EMP501
RECON SUBMISSION OVERVIEW
Electronic Submission Channels
ORIGINAL
RECON
EMP501
1. Import CSV
2. Capture the following:
• EMP501
• IRP5/IT3(a)
• EMP601
• EMP701 IRP5/IT3(a)
EMP601
IRP5/IT3(a) e@syFile generates ZIP (full reconciliation) that can be manually submitted to SARS
1. Import XML e@syFile generated
2. Must be supported by signed Adobe:
• EMP501
• EMP601
• EMP701
Partial Electronic and Manual Submission Channels
EMP601
EMP701
EMPLOYER
REVISED
RECON
EMP701
IRP5/IT3(a)
1. The following manually completed forms:
• EMP501
• IRP5/IT3(a)
• EMP601
• EMP701
Branch Office
Post
EMP601
SARS
I
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S
P
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N
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TM
• HOME - Application Home
• REGISTRATION - eFiling Registration
• IMPORT - Import Payroll File
• EMPLOYEE ADMIN – View/Edit Employees
• MONTHLY PROCESS – EMP201 Submission & Payment)
• RECONCILIATION – Cancel Certificate Range, Declaration
(EMP501) & Adjustments (EMP701)
• SUBMISSION – Submit prepared declarations to SARS
• AGENT APPOINTMENTS - process ITA88s issued to
Employers
• EMPLOYER ADMIN – Add/Edit Employer
• UTILITIES – Various important functions

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NEW FUNCTIONALITY AND ENHANCEMENTS
• Enhanced Error messages – Import and Declaration
• Improved processing time (import, submissions, merge)
• New, smaller output file format – encrypted ZIP file
• Improved submission process & turn around time
• Monthly Process – EMP201 submission and payments
• Inbox (listing all electronic correspondence from SARS)
• IT Registration – Bulk and Single registration
• ITA88 (Agent Appointments)
• EMP201 Statement of Account (later this year)
• EMP201 Mismatch and Allocation of payments (later this year)

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FREQUENT ERRORS AND QUESTIONS
• Downloading and Installation errors
• Functionality errors – network and pc restrictions
• Submission - Access restrictions & incorrect user rights
• Transaction year, Period of Reconciliation, Year of
Assessment – 2012, 201108, 2012 (standard)
• Employee Date of Birth – must match ID number
• Special Characters in CSV file / employee records
• Importance of updates (software version)
• Cancellation of multiple certificate ranges
• Declaration - Certificate sub-totals (PAYE, SDL, UIF)
• Managing data – importance of backups

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