URGENT REMINDER TO EMPLOYERS

ANNUAL PAYE RECONCILIATIONS FOR THE YEAR ENDED 28 FEBRUARY 2009

All employers who have deducted PAYE from their employees during the 2009 tax year (1 March 2008 to 28 February 2009) need to complete and submit a PAYE reconciliation (Form EMP 701) to SARS by not later than 30 May 2009.

To submit the reconciliation the following steps need to be followed:

• IRP 5 tax certificates need to be completed for each employee from whom PAYE was deducted.
• The total tax deducted as shown on all the IRP 5 certificates must be reconciled to the EMP 201 returns submitted during the year.
• The EMP 201 returns must be reconciled to the monthly payments made to SARS.
• The annual reconciliation Form EMP 701 must be submitted to SARS using their e@syFile 2009 software.

Please remember that employers are prohibited from distributing IRP5 tax certificates to their staff prior to their annual reconciliation (Form EMP 701) has been submitted AND APPROVED by SARS.

As the deadline for submission is 30 May 2009 (SARS will impose penalties for late submission), kindly let us know by no later than 30 April 2009 should you require our assistance in submitting the annual reconciliation so that we can assist you to complete and submit your return on time.

At the same time, we will require full details of all salaries paid and taxes deducted from all your employees during the entire tax year.

Kindly note that this requirement of SARS only applies if you are an employer and have deducted PAYE from  staff during the 2009 tax year.