It's been a week since the Easter long weekend, and most of us have settled back into the swing of things. But now's the time to focus on your employer tax responsibilities - and you have just seven weeks to get everything in order, as the 2013 Employer Annual Reconciliation period runs to 31 May 2013, says SARS. Luckily, it takes just four steps to do so...
As of 1 April, employer tax season is open, says SARS
So you have just seven weeks to submit your Employer Reconciliation Declaration and Employee Tax Certificates or IRP5s for 1 March 2012 to 28 February 2013.
Luckily, you don't have to worry that this will be an admin-intensive process, because no changes have been introduced.
All you need to do is follow four simple steps.
Four steps to submit your Employer Reconciliation Declaration and Employee Tax Certificates to SARS!
1. Use the latest version of e@syFile™ Employer software
Your first step is to download the latest version of e@syFile™ Employer from the SARS website.
Remember to back up your current information on your computer first, in case installation of the latest version deleted your old information.
2. Import the electronic IRP5/IT3(a) CSV files from your current payroll system into e@syFile™ Employer
It's as simple as checking that you've imported them all against your list of employees for the tax year.
3. Reconcile your EMP501 by capturing all additional manual IRP5 or IT3(a) certificates
The e@syFile™ Employer software will use the information from all the tax certificates to automatically populate certificate totals for your Employer Reconciliation Declaration or EMP501.
All you need to do is enter your monthly liabilities and payments.
4. Submit before the deadline of 31 May 2013 to avoid penalties from SARS!
The earlier you submit the more time you will have to rectify any reconciliation problems, says SARS.
This includes penalties for failure to submit, late or inaccurate submissions, or reconciliations which do not balance.
An easy way to avoid reconciliation problems is to remember to include any gifts worth more than R5,000 on your employees' IRP5s, says FSP Business
That's because 'The first R5,000 of an asset/gift is tax-free. Every rand above that is taxed, at the marginal tax rate (i.e. whatever tax bracket you fall into, depending on your salary),' explains practicaltaxhandbook.co.za
Simple as that.