6 Monthly PAYE Reconciliations

The South African tax law in relation to employees' tax has and will continue to change greatly on an annual basis. The tax law applicable on employees' tax is directly linked to the Income Tax Law in South Africa.

Tax specialists are an invaluable and vital component in the payroll process.

No employer can afford not to be ahead of current trends.

Our specialised team looks after your best interests with relation to payroll and HR requirements, effectively managing the payroll process and ensuring full compliance with SARS.

The first step to this trusted relationship lies in the method and procedures the employer adheres to when dealing with their staff's weekly, fortnightly or monthly remuneration.

Either our specialised team works in conjunction with your current payroll/HR department or the entire payroll function can be outsourced to us.

Taxrek provide all our business clients access to the payroll portal as part of our real-time web-interface ERP system.

The ERP allows payroll-clients full access or limited access (depending on your staff members access requirements) to your company's payroll, whereby the staff members' details can be updated, payslips generated (weekly, monthly and fortnightly), monthly analysis furnished for an individual or corporate level and much more.

Our firm will be overseeing the process and will be able to give invaluable advice from an income tax specialist's point-of-view, ensuring that the correct income structure exists for your staff members.

Payroll directly relates to income tax and a specialised team must do the quality control and assurance.

Our firm also ensure that the monthly PAYE returns and 6-monthly reconciliation is submitted timeously and correctly.

The new penalty regime that SARS implemented as part of the Tax Administration Act (TAA) would cause penalties to be raised on incorrect submissions of returns to SARS.

Therefore, quality assurance is extremely important indeed.

PAYE/SDL/UIF reconciliations must be completed and submitted to SARS via SARS Easyfile at predetermined dates after every 6 monthly period had lapsed during the payroll year, which is between 01 March to 28 February.

The reconciliation of the first period 01 March to 31 August consists of reconciling all PAYE/SDL/UIF for the first 6 months of the payroll year with the detail and payment declared to SARS as per EMP201.

The second period of reconciliation consists of reconciling all the PAYE/SDL/UIF  for the full 12 months of the payroll year, towards monthly payment and EMP201 submissions, where after annual IRP5's are issued to all employees of our business clients.

The EMP501 is preloaded on the online web-based ERP for our clients' review and download.