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Tax Year-end 2022/2023 Frequently Asked Questions

Created on  | Last modified on 

Summary

This article contains the frequently asked questions for Tax Year-end 2022/2023 on Sage Business Cloud Payroll Professional.

Description

South African Employers are required to reconcile their Monthly Employer Declarations (EMP201) for the Reconciliation Year (1 March 2022 to 28 February 2023).

These reconciliations are based on the Monthly Employer Declarations (EMP201) submitted, with the tax values of the final IRP5/IT3(a)s certificates generated, accurate payroll information, employees’ tax (PAYE) payments made, thereafter an Employer’s Reconciliation Declaration (EMP501) is submitted.

Resolution


1. When will the SARS Annual Employer Reconciliation Submission (EMP501) filing season for the 2022/2023 tax year start?

The 2022/2023 SARS Annual Employer Reconciliation Submission (EMP501) dates can be confirmed on the SARS website by clicking here. The information is located under the Business Requirement Specifications (BRS) and timeline section.


2. When is the deadline to submit my EMP501 reconciliation to SARS?

The 2022/2023 SARS Annual Employer Reconciliation Submission (EMP501) dates can be confirmed on the SARS website by clicking here. The information is located under the Business Requirement Specifications (BRS) and timeline section.


3. Is it mandatory to submit my SARS Annual Employer Reconciliation Submission (EMP501)?

The reconciliation and submission of the EMP501 return and tax certificates to SARS must take place within the dates announced from year to year as the employer’s filing season. Failure to do so may result in penalties and interest.


4. How can I submit my SARS Annual Employer Reconciliation Submission (EMP501)?

These submissions can be made via one of the following channels:

  • Manual – complete the relevant tax certificates (50 certificates) and return the specified forms on SARS eFiling, and submit electronically to SARS or visit a SARS Branch for assistance
  • Electronic – Generate a tax certificate file from the payroll system and import this file into SARS e@syFile™ Employer. Within SARS e@syFile™ Employer, capture additional manual certificates, cancel certificates, capture EMP501 details, and submit to SARS via the eFiling online channel.
  • If the employer has 50 or fewer IRP5/IT3(a) certificates, a tax certificate file can be generated from the payroll system and this file can be imported into SARS eFiling. Any amendments to or cancellation of or capturing of certificates can be done in eFiling if the total number of certificates does not exceed 50.

NOTE: Sage CSV import files for the 2022/2023 tax year are created according to the latest Business Requirements Specification and import files are tested only on the SARS e@syFile software. Unfortunately, no testing platforms are available for SARS eFiling, however, it is accepted that both platforms will apply the same validations.


5. What is the version of the Sage software I need to be on to submit my SARS Annual Employer Reconciliation Submission (EMP501)?

To successfully submit your Annual Employer Reconciliation (EMP501) SARS return for the 2022/2023 tax year, the Tax Year-end Copy Instance must be on Release 5.9b. Click here for more details on this update.


6. Where can I find the specifications of the IRP5 submission file?

The 2022/2023 Business Requirement Specification is available on the SARS website and can be accessed on the SARS website by clicking here.


7. Where can I find more information on how to complete my declaration?

A step-by-step guide to the Employer Reconciliation Process is available on the SARS website and can be accessed by clicking here.


8. When should I provide my employees with their tax certificates?

Once you have submitted your reconciliation and certificates to SARS, and it was accepted successfully by them, you can distribute the certificates to your employees.

TIP: We recommend that you keep copies of the tax certificates on file, and keep a record that your employees have received their certificates from the Employer.

Related article: How do I upload my employee Tax Certificates to InfoSlips?


9. How long should I be required to keep the documentation for my employees?

As per the Tax Administrations Act, the Employer must keep records of remuneration, tax-deductible deductions, and Income Tax reference numbers of their employees for a period of 5 years from the date of submission of their returns.

NOTE: If you have been audited by SARS, you might be instructed to keep records for even longer periods.


10. Where can I find more information regarding the Employment Tax Incentive (ETI) refund process?

Details on the refund process are available on the SARS website by clicking here.


11. What can the support desk assist with during the SARS Annual Employer Reconciliation Submission (EMP501) process?

Click here to read more information from our Sage Knowledgebase.


12. Where can I search for self-help documentation to assist me with the reconciliation and submission process?

All documentation to assist you with the reconciliation and submission process can be found on our dedicated Tax Year-end Centre page on Sage City and covers all payroll aspects of the Annual Employer Reconciliation Submission (EMP501). Click here to access the page.


13. How do I make a copy instance for Tax Year-end?

When you start a new tax year, the system will automatically create a Tax Year End Instance, for the specific year and month, which you will access to extract your tax certificates for the 2022/2023 tax year. Click here to read more information on Tax Year End Management from our Sage Knowledgebase.


14. If there are differences on the EMP501 Reconciliation report comparing the payroll values and declared EMP501 values, how do I resolve or review the differences?

If there are differences in the EMP501 Reconciliation report when you compare the values of your payroll PAYE, SDL, UIF, and ETI and your monthly declared EMP201 values, you will need to investigate the reasons for the differences before submitting. The following reports can be printed to investigate the differences:


15. If I need assistance with my EMP501 Reconciliation, what options does Sage offer?

You have the following options to assist you:


16. I have generated and completed my EMP501 reconciliation history report and I have differences every month, how is that possible?

There are various reasons that might cause this issue:

  • Transfers of employees between payroll companies with different PAYE numbers
  • History Screen changes
  • Changes made to company setup or employee records after payroll was closed or finalised
  • Recalculations activated after the payroll was closed


Once you have established the cause, changes should be made to your declarations or on the payroll, to correct the issue. We highly recommend that you contact your Business Partner for further assistance with the investigation and applying the corrections. Click here to book a consultation.


17. What should I do if I receive a Payroll Taxes Validation Failure letter?

If any errors are found by SARS, the employer will receive a “Payroll Taxes Validation Failure” letter.

The employer will be able to view more detail on the new ETV field in e@syFile once the ‘Download Employment Taxes Validation’ option has been selected (Utilities – EMP501 Status Dashboard – ETV column). Please click on the link to view the information.


NOTE: Should you have any tax advice or compliance-related questions/queries, they should be addressed to SARS or your Tax practitioner