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Step 3: Review and validate the retirement fund values on the payroll

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Summary

How to validate the retirement fund values for tax year-end submissions on Sage VIP Classic and Premier.

Description

Before generating the IRP5 files, you need to review the retirement fund values and information of each employees. This report helps identify any issues to resolved before submission. The Validation Report does not generate files for SARS e@syFile; it is only a tool to check for errors.

Retriement fund contributions have a direct influence on the tax calculation of employees. Employer retirement fund contributions will also be taxable as a fringe benefit in the hands of the employee.

Resolution

1. Access the RSA Submission Utility:

  1. Go to the Utilities menu in your payroll company
  2. Select RSA Submissions, then SARS Submission Process
  3. Review the Period End Date and select Continue
  4. Click 'Step 4: Validate Retiement Fund Values'

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2. Review the report:

  • An Excel spreadsheet opens with the details of each employee.
  • Review the details of the report to ensure all employees are linked to the correct Scheme Code, Scheme Name and Type of Scheme.
  • Review the The scheme type Defined Contribution Fund, Defined Benefit Fundh or Hybrid Fund determines how the 
  • Review the fund values (employee and employer contributions) 

 NOTE: Code ZZZZ is the system default code for Defined Contribution Funds. If your company has a Hybrid or a Defined Benefit Fund, then you will need customised Scheme Codes to be setup. Employees must be linked to the correct schemes. 

3. Apply corrections (if required)

  • If any of these values are not correct:
    • Review the setup
    • Correct the YTD+ values fr the employee - Do corrections of Company Contributions on the Employee History Screen, since the fringe benefit calculates per month 

CAUTION: Fund changes from Defined Contribution Funds to Hybrid or Defined Benefit Funds will require a consultation. Any changes to these funds are complex and could result in tax changes.

Next steps

All the employee data is now check, and time to review the financials in the payroll and values declared to SARS.

Continue to the next of SARS Submission Utility process: Step 5: Reconcile payroll financial values.