deadline looms for employers to submit payroll records
19 August 2008

“Employers have until 29 August 2008 to submit payroll information to SARS after which strong penalties may be imposed,” SARS said.   ccording to SARS Commissioner, Pravin Gordhan, SARS has engaged scores of employers since 1 July 2008 to assist them with the new requirements. “Still, SARS believes there are many employers who have not yet complied with the legal requirement to submit their declaration within a 60 day period which started on 1 July this year.”

To date, 42 400 employers have submitted a Reconciliation Declaration (EMP 501 form) to SARS along with 2.5 million employee tax certificates [IRP5/IT3(a)].  The EMP501 document is a reconciliation of taxes deducted from employee salaries (PAYE), payments made to SARS on behalf of employees and tax certificate information.  Mr Gordhan said new emphasis was being placed on the information supplied by employers to SARS in respect of the PAYE deducted from employees.

“This year employers will be required to meticulously submit records which will ensure that SARS has accurate information about their employees. Employers are reminded that employees cannot begin filing until a reconciled declaration has been received from the employer.”  SARS added that non-compliant employers would make it very difficult for their workers to submit completed income tax returns when the filing period for individuals opens on 1 September 2008.

This was because SARS would for the first time this year issue employees with pre-populated tax returns that already contained their information.  The information about the PAYE deducted and paid over to SARS would ensure that SARS has accurate information which would be used to pre-populate income tax returns for certain categories of individuals.  SARS said the information would also be used to verify information supplied by individuals on their tax returns and also to make these tax returns available to individual taxpayers from 1 September 2008.
The Revenue Service also has software available to assist all employees to download the documents from its eFiling website.

Furthermore, SARS would provide employers with free version on disk of the easyFile computer software complemented by a free training video which provide a step-by-step guide in seven chapters on how to apply the software.

Proffesor Ndawonde,  www.buanews.gov.za