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Follow these four steps to reconcile PAYE correctly in your IT14SD form

by , 22 October 2014
Oh dear, you made a mistake on your Vat return. Now SARS wants you to complete a Supplementary Declaration (IT14SD).

If you make a mistake here, SARS will definitely audit your company to sniff out any non-compliance with tax laws.

One of the most common areas for mistakes on the IT14SD form is PAYE reconciliation.

That's why we're revealing four steps you must take to reconcile your PAYE correctly to avoid this type of trouble with SARS...

 

Here's why you need to reconcile your PAYE correctly

 
Your reconciliation must include all PAYE declarations and reflect the total salaries and wages/employment costs you declared under the 'Income Statement Information' section on your original IT14 and EMP201s.
 
For example, if your Company/Close Corporation has branches you registered separately for PAYE, you must reconcile the total PAYE declarations for all the branches with the salaries and wages/employment costs from your first IT14 submission.
 
To do this, you need to compare your original submission against your new one.
 
And that's where these four steps come in.
 
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Reconcile your PAYE on the IT14SD by taking these four steps

 
Step #1: Insert the amount you declared against code 4569 (Directors' / Members' remuneration) on the IT14. 
Step #2: Insert the amount you declared against code 4581 (Medical, pension and provident fund contributions) on the IT14.
 
Step #3: Insert the amount you declared against code 4529 (Salaries and wages [excl. medical, pension, provident fund contributions]) on the IT14. This excludes the amounts you set out in Step 2.
 
Step #4: Insert the amount you included in your profit or loss, and that relate to employment costs on the IT14.
 
There are four more steps you must take and you can find them in How to Complete Your IT14SD Form. It contains everything you need to know about completing your IT14SD correctly.
 

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