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Interim PAYE Reconciliations: What You Need to know

29 October 2010   (0 Comments)
Posted by: Author: Monique Vanek
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Interim PAYE Reconciliations: What You Need to know

SARS gives its reasons for introducing the biannual returns

For the first time in SARS’ history, employers have to submit tax returns biannually, a mechanism put in place to reduce PAYE fraud and make SARS more efficient.Here's what you need to know…

Submission dates
• 1 September to 29 October if you submit via your own system.
• 1 September to 31 October if you do so through SARS’ e@syFile Employer.

What is the PAYE reconciliation due by the end of October?
It is an interim reconciliation for theperiod 1 March to 31 August,which is exactly the same as the annual reconciliation declaration except that the declaration and employee Income Tax certificates are for six months only.

There is also a mandatory requirement to furnish employee demographic information.The following employee information is required (where applicable):
• Initials, first two names and surname;
• ID number or passport numberand country of issue (where no SA ID is available);
• Date of birth;
• E-mail address;
• Business, cell, home telephone numbers and fax numbers;
• Physical business, postal and residential address;
• Directive numbers; and
• Bank account details of the employee.

Employers also need to include income tax reference numbers for employees who are registered for the interim reconciliation.If an employee is not registered for income tax and hence does not have a reference number, the information field should be left blank.SARS will automatically register the employee when processing the reconciliation submission.

Should the certificates be issued to employees? No, they are for SARS’ administrative purposes only.

Employees must still receive only the one tax certificate at the end of the final annual reconciliation. How do I submit it?
You can submit on e@syFileEmployer, a free software package from SARS, which is available for download from the eFiling website( for the biannual returns According to Mark Kingon, group executive of business systems at SARS, the biannual return was introduced to help SARS know its clients better, to track the movement of employees, to prevent fraud, and ensure less errors in the final reconciliation. It will also help SARS prepare for the wage subsidy, should it ever come into existence.

SARS is hoping to prevent employers from deducting PAYE and using it for cash flow, instead of paying it over to the receiver,says King on. "It will help us to check that what is actually deducted from staff is actually paid over to SARS”.

Do all taxpayers now need to filling a tax return?
Employees who earn less than R120 000 (before tax) for a full year from one employer, and have no car allowance, additional income or deductions that they want to claim for, do not need to submit a tax return.

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.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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