Points for Discussion

Transcription

1 PAYE Enhancements

2 Points for Discussion Form Changes Pre population ETI Validations Business Rules EMP 201 & EMP 501 Compliance Audits Estimated and Agreed Estimated Assessments Legislative changes & new source codes

3 EMP 501 Form Changes The following field will be added to the EMP 501 return to ensure that the EMP 501 reconciliation will balance: Audit result not included in certificates Tax paid by employer on behalf of employees Unstructured postal address has been added to the IRP5/IT3(a)

4 Form Changes Processing of pre-1999 returns EMP201 returns for periods prior to 1999 can now be submitted via all channels. The submission period will be limited to either: The taxpayer s year of liability; or The legislated commencement date of the tax.

5 enhancements Employee database management Users will have the ability to mark employees as inactive, as well as reinstate employees as active. The date on which the employee`s status was changed will be stored in the database. Enquiry functions listing employees will exclude inactive employees.

6 enhancements Bulk printing of IRP5/IT3(a) certificates The option to save an EMP 501 recon and IRP5/IT3(a) certificate to a disk for submission will be replaced with: An option to save the IRP5/IT3(a) certificates to a folder for bulk printing. The folder name will include the wording: For printing only.

7 enhancements Bulk printing of IRP5/IT3(a) certificates A watermark For printing only will be added to the IRP5 Certificates If the user selects this option, then the application will not create a zip file or update the status of the certificates to submitted A message will be displayed to the user as a reminder to submit the recon to SARS The option to create a disk will move to an administrator function for an exception process. The following function will be discontinued : Recon Assistant

8 efiling enhancements Import a CSV File efiling will now be enhanced to: Provide the option for users to import a CSV file created by an external system Use the CSV information to pre-populate the WPAYE Wrapper form and populate multiple IRP5/IT3(a) certificates.( Form validations will be performed on the imported data.) Enable the user to add, amend and/or remove certificates

9 WPAYE Wrapper Form The following enhancements aim to provide a better experience to employers who use the WPAYE wrapper form to submit EMP 501 Returns and IRP5/IT3(a) certificates: Pre population of non- financial information on the IRP5/IT3(a) certificate. Enable the user to add, amend and/or remove certificates.( Will remain editable after pre- population) Increased number of IRP5/IT3(a) certificates to capture. Will be increased to allow the employer to capture 50 certificates.

10 WPAYE Wrapper Form The following enhancements aim to provide a better experience to employers who use the WPAYE wrapper form to submit EMP 501 Returns and IRP5/IT3(a) certificates: Pre population of non- financial information on the IRP5/IT3(a) certificate. Enable the user to add, amend and/or remove certificates.( Will remain editable after pre- population) Increased number of IRP5/IT3(a) certificates to capture. Will be increased to allow the employer to capture 50 certificates.

11 Pre Population The application will provide the employer with a message SARS has the financial values for the EMP501. Select Accept data in order to capture your own values on the return If the employer accept SARS value, the system will populate the EMP 501 with these figures. Where the employer has selected the form to be pre-populated, the form will validate any data captured by the user and if the data captured does not comply with the allowed indicator as received from ATP, the form will provide the relevant messages to the user in order to resolve the issue on the EMP 501 form

12 Pre Population If the employer has selected to capture own data, the form will not be able to complete the allowed indicator and deviation check. In this event The form will be submitted without checks done and if an issue is found by ATP subsequent to submission, ATP will respond with a message. If the employer chooses their own values the e@syfile database will display a form that is not pre-populated. The application will provide the employer with a message You are about to capture own data on the EMP 501 form. Note that the data at SARS may be different and may lead to the EMP 501 form not being accepted by SARS. This is presented with the option to continue or cancel.

13 Pre Population In this event The form will be submitted without checks done and if an issue is found by ATP subsequent to submission, ATP will respond with a message. If the employer chooses their own values the e@syfile database will display a form that is not pre-populated. The application will provide the employer with a message You are about to capture own data on the EMP 501 form. Note that the data at SARS may be different and may lead to the EMP 501 form not being accepted by SARS. This is presented with the option to continue or cancel. The IRP5/IT3(a) certificates will go through the balancing rules every time an IRP5/IT3(a) is submitted/cancelled after an EMP 501 has already been processed.

14 ETI Validations All EMP 501 submissions that have ETI will now be validated. Two validations will be performed on all ETI EMP 501 submissions: ETI calculation and legal requirements validations Compliance validation check ETI validation check The system will calculate the values of the ETI declared on the EMP 501 by adding the value of the ETI (code 4118) of all certificates received and compare it to the total ETI value supplied for the bi-annual or annual reconciliation depending on which period is validated. If the calculated values are not the same, then ETI balancing has failed.

15 ETI Validations ETI validation check The employer will have to submit a revision within 21 working days If no EMP 501 revision is received within 21 working days, the system will automatically adjust the EMP 501 and correct the ETI amounts. Example: If the employer paid any employees below the minimum wage or paid any employees below the set R2000 monthly remuneration, the system will generate an ETI penalty. The ETI calculated amounts on the applicable periods on the EMP 501 will be adjusted to match the new IRP5/IT3(a) amounts that will now pass ETI validations. The system will auto adjust the ETI Utilised and ETI Brought Forward for all periods to the correct amounts after the adjustments. The system will then submit the EMP 501, (that passes ETI Validations) to the second phase of ETI Compliance Check.

16 ETI Validations Compliance check The system will check if the employer is compliant at the time of the submission of the EMP501( Looks for outstanding debt and returns) Should the employer be non compliant, the system will mark the EMP501 with the new status FailedETICompliance. The system will daily check the compliance. When the employer is compliant the system will pass the EMP 501 to the next phase of Risk screening.

17 Compliance Audit If a risk has been identified during the risk screening process of EMP201 or EMP501, a PAYE compliance audit case will be created. A standard generic letter will be issued to the employer requesting the employer to submit either a RFC or relevant material. If the employer submits a RFC, it will be routed for risk screening and if it resolves the risk, the PAYE compliance audit case will be finalised. If a risk is identified in an EMP501 for which EMP201 audit case has been created, the EMP201 audit case will be cancelled and the EMP501 audit case will be created. The cancelled EMP201 compliance audit case will be related to the EMP501 case.

18 Compliance Audit If an EMP201 compliance audit case is in diarised status and another EMP201 for another period is identified for audit, the system will add the new period to the existing case and first letter will be issued to the employer. The compliance auditors have 60 days to finalise the case before the case will expire based on Case SLA parameter. EMP217 notice of assessment will be issued which includes the grounds and reasons for SARS revision, estimate or agreed estimate.

19 Compliance Audit Letters issued to the employers are viewable from different channels irrespective of the submission channel used to submit the return. Letters will be issued using the go green principles i.e. e-filing and/or or post. Employers may submit a RFC from different channels irrespective of the submission channel used to submit the initial return. An employer can submit a RFC after the audit with findings has been finalised provided that the RFC will result in an increased liability relative to the audited assessment.

20 Estimated Assessments An original assessment based on an estimate may be raised in accordance with Section 95 of the TAACT no 28 of An original assessment based on an estimate may not be disputed by the Employer, due to the fact that the employer has yet to submit a declaration (if original). If the estimated assessment has been done and the employer submits a declaration, the employer can dispute as per the normal dispute processes. The employer may submit a return within the prescription of 3 calendar years. After the 3 calendar years all declarations will be blocked on all channels (efiling, e@syfile, and SARS branch)

21 Agreed Assessment An original assessment based on an agreed estimate may be raised in accordance with Section 95 of the TAACT no 28 of The assessment may not be disputed by the employer at any stage as no returns is outstanding in this instance. The employer may not RFC the declaration the declaration at any stage via any od the SARS channels (efiling, and SARS branch) SARS may revise the assessment within the normal prescription (Currently within 5 years) Agreed estimate may still be audited by SARS after the fact.

22 Source Codes The following new source codes have been added to the IRP5/IT3(a): Source codes (3817, 3825, 3828) to differentiate between pension, provident and retirement annuity fund contributions; Source code (4582) to indicate the total value of remuneration portion where the source code allow a 20/80 split; and Source code (4120) to capture the additional medical expenses tax credit for employees over 65 years.

23 Thank you SARS Contact Centre SARS (7277) Visit your nearest SARS branch (to locate a branch visit Open: Monday, Tuesday, Thursday & Friday 08:00 to 16:00; Wednesday 09:00 to 16:00