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All Employees Now Need To Be Registered As Taxpayers

28 April 2010   (0 Comments)
Posted by: Author: Monique Vanek
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All Employees Now Need To Be Registered As Taxpayers

… and employers only have two months in which to do this

Employers that have found the filing season for employers to be onerous in previous years, might find it even more so this year as a result of the new requirements being introduced.SARS has issued a 61-page brochure on the new PAYE requirements for the 2010 IRP5s(i.e. employees' tax certificates for the year ending 28 February 2010),as well as a new simplified EMP201.The EMP201 will no longer be a payment and liability declaration, but a payment declaration in which the employer declares the total payment together with the allocations for PAYE, SDL and UIF.

According to Colin Wolfsohn of Wolfsohn & Associates, who is also a member of the SAICA National Tax Committee, there are quite a few new requirements which will entail a lot of additional work from employers:
•All employees will now need to be registered as taxpayers irrespective of what they earn.This requirement will become mandatory from the 2011 tax year;
•Employers will need to register them on the SARS e@syFilesystem. (Beta) e@syFile was released on 1 March 2010. The new e@syFile program is due to be released to employers in April this year;
•Employers need to submit additional demographic details for employees, including ID numbers, bank account details and physical home and business address details, in the Employer Reconciliation Declaration(EMP501);
•Before installing the TEST(BETA) 2010 e@syFileTM,employers need to backup their current PAYE information as the installation of the new software results in current information being deleted. The final version will be available for download from from 1 April 2010;
•Employers will need to obtain information for all persons employed since 1 March this year;
•The 2010 IRP5 is a completely different document to past years.

The two page IRP5 requires a lot of additional information for each employee.Since employers have literally two months to get this done (i.e. 1April 2010—31 May 2010), don't  leave it for the last minute.

Editor’s Note:
I raised this issue during a recent visit to the SARS office in Pietermaritzburg—mainly because of massive queues arising from large numbers of (mainly State)employees who were applying for registration as taxpayers.However, according to the consultant I spoke to in the tax practitioners’ sect on, the requirement to have everyone registered is only applicable to the 2011 tax year.According to internal SARS directives, such registration should therefore betaking place from August 2010onwards.Clearly a great deal of confusion has been created.My recommendation to employers,however, is to err on the side of caution by allowing your staff time off to brave the queues and get themselves registered—just imagine the scramble at SARS offices if this in fact does need to be done by 31 May 2010!

Source: By Monique Vanek (Tax Breaks)



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

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