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Basic Reconciliation Procedures

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Summary

This article is a guide on the basic reconciliation procedure on Sage VIP Classic, Sage VIP Premier and Sage 200c VIP

Description

The EMP501 Reconciliation report is the recommended report to print at tax year end. It summarises the PAYE, SDL, UIF and ETI for each month in the tax year.

Resolution

Reconciliation steps:

1. Determine the total liability for Tax, UIF,  SDL and ETI. (including any manual certificates issued through the year).

Print the EMP501 reconciliation report to Excel.

Main Menu > History > Reports > EMP501 Reconciliation 

  • Related article: How do I print the EMP501 Reconciliation Report ?
  • Print the report for the period - March to February (Tax Year End), March - August (Interim Reconciliation)
  • Current or Multiple companies may be selected depending on the PAYE number
  • The companies must all be in the same pay period, or will not be 
  • Add the Tax, UIF and SDL for any manually issued certificates, to the amounts on the spreadsheet.

2. Determine the total amount paid to SARS, based on actual SARS payment receipts. Capture the amounts on the spreadsheet. Any differences will be displayed.

3. If the EMP501 balances, proceed with creating the IRP5 file, for importing into [email protected]

4. If you have differences, determine where the variances on payroll are.

  • Start by identifying which employees are affected.
  • Print the History Screen Report (real number 698)
  • Related article: How do I print the History Screen Report?
  • Tick the "Items Included in a Tax Reconciliation" field
  • Include "Terminations" and select the "Detail" option
  • Choose the specific month where there is a difference
  • Compare the amounts on the History Screen report(s) to the original EMP201 report for each period
  • Accountability for any changes can be investigated using the Audit Trail and/or Logfile reports

Now determine why employees’ records were changed:

  • Were the changes correct?
  • Are the new/saved values on payroll correct?
  • Or are adjustments to payroll required?
  • Make the necessary corrections, if any.
  • If the saved values on payroll are correct, then the difference will have to be paid to/claimed from SARS.

 

CAUTION: Should you require assistance with a payroll reconciliation, we recommend that you arrange a consultation, as the process is too detailed to complete over telephone/email support. Contact your Sage Business Partner for assistance, or click here to book a consultation.