SARS has now postponed the Start of the 2016 EMP501 and Tax Certificate Submission Season BUT have not extended the Deadline of 31 May 2016, eventhough I have checked on their “Important Dates” listing and the EMP501 Deadline does not appear on there anymore for the 2016 Submission.
Employers are required to submit their Pay-As-You-Earn (PAYE) Employer Annual Reconciliations between 18 April and 31 May 2016 to SARS, confirming or correcting payroll tax amounts which were declared during the 2015/2016 tax period.
This year, employers are urged to accurately verify and update each employee’s personal and financial details before submitting their Annual Reconciliation Declaration (EMP501) and Employees Income Tax Certificates [IRP5/IT3(a)s] to SARS.
Should these details be incorrect on an IRP5 certificate, the employee will be unable to file his/her Income Tax Return for Individuals (ITR12) during Tax Season. Individuals will no longer be allowed to make any corrections to pre-populated IRP5 details on their returns.
As we have also mentioned previously, Banking details are of upmost importance to be bona fide and current as majority of individuals experiencing issues with Payment be made to them from SARS is due to them having to go in to SARS Branches, again, majority of those individuals will have to have more than one visit to SARS branch and with great difficulty have their banking details verified for payments by SARS.
In cases where details are incorrect, employees will have to revert to their respective employers who will need to make changes on the IRP5 and re-submit these to SARS. This process can be time consuming and it may become problematic for employees to file on time. This process as it is time consuming will also be rather costly as it is unnecessary if it was avoided be the employer ensuring that personal details for all their employees, current AND terminated is current and correct.
Employers play a very important part in the income tax cycle which effectively starts on 18 April with the submission of the annual reconciliations. We rely on your cooperation to make the submission of ITR12s later in the year as stress-free as possible for all involved. Need help? Call the SARS Contact Centre on 0800 00 7277.
For the Submission if we have not started with you yet, contact me personally on firstname.lastname@example.org