Do this to complete your PAYE reconciliation schedule correctly when filling in your IT14SD
The Supplementary Declaration (IT14SD) is a form you use to reconcile your company's Income Tax, Vat, PAYE, UIF, SDL and Customs declarations to SARS.
There are six sections you must complete when you fill out your IT14SD. One of them is the PAYE reconciliation schedule.
Often, companies complete this section incorrectly. As a result, SARS rejects their IT14SD.
Don't let the same thing happen to you.
Follow these eight steps to complete the PAYE reconciliation schedule correctly when filling in your IT14SD so SARS won't reject it.
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Have you received a Supplementary Declaration IT14SD target="_blank" class="contextual_links">IT14SD form?
Do you know how to complete it correctly? If you've opened the form you'll see it's quite tricky.
IT14SD basics: Follow these eight steps to complete the PAYE reconciliation schedule correctly
According to How to successfully complete your IT14SD form e-book
this section you must reconcile and reflect the total of all salaries, wages and employment costs you declared as income statement information on the IT14 and EMP20I forms.
This PAYE reconciliation schedule contains eight fields and you must follow these steps to complete it:
Step #1: Directors'/members' remuneration as per IT14:
Insert the amount you declared against code 4569 on the IT14.
Step #2: Medical, pension and provident fund contributions as per IT14:
Insert the amount you declared against code 4581 on the IT14.
Step #3: Salaries and wages as per IT14:
Insert the amount which was declared against code 4529 on the IT14. This excludes the amounts that are set out in step number 2.
Step #4: Other employment cost as per IT14:
Insert the amount you included in the profit or loss that relate to employment costs on the IT14.
Step #5: Total employment cost as per IT14:
This amount is the sum of the amounts you set out in steps 1 to 4.
Step #6: Total PAYE paid as per EMP201's:
Insert the total PAYE you set out in the EMP501 declaration, or the total of the PAYE as reflected on the EMP201 for that particular year of assessment.
This amount must exclude the Skills Development Levy (SDL), Unemployment Insurance Fund (UIF) contributions, penalties and interest.
Step #7: Total employment cost on which PAYE liability was calculated:
Insert this amount based on your payroll and financial statements.
Step #8: Reconciling differences:
Enter an amount if you're filling out the form manually.
This difference must be positive. This will show there's a discrepancy between the amounts, and you'll have to explain the discrepancy if it's greater than R100.
The reason for the discrepancy could be something as innocent as paying an amount to an employee who isn't liable to employees' tax. It doesn't automatically mean you've committed an offence. So make sure your explanation is clear and you can prove where the discrepancy came from.
Following these steps will help ensure you complete the PAYE reconciliation schedule correctly when filling in your IT14SD.
PS: We strongly recommend you check out How to successfully complete your IT14SD form e-book
. It will give you all the steps you need to fill other sections of your IT14SD
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