Ensuring no stones are left unturned with this vital company SARS submission

Johannesburg, 30 August 2024 – Death and tax are the only two certainties in life, and while the latter likely will not bring about any physical demise, it is by no means pleasant.

This is especially the case when the annual submission deadline draws nearer. For registered businesses, this period can be a nightmare to negotiate if they are not buttoned up on tax requirements and procedures.

EMP501 submissions are a sore point for many South African employers, whether they are companies, small businesses or non-profit organisations. It applies to all those registered for Pay-As-You-Earn (PAYE) with the South African Revenue Service (SARS) and is mandatory.

Essentially, any form of staff payroll requires EMP501 reconciliation.

SARS requires this documentation to ensure organisations are deducting the correct amounts for PAYE, UIF (Unemployment Insurance Fund) and SDL (Skills Development Levy) from workers’ salaries. These amounts are collected by SARS.

Missing the deadline or submitting incorrect information can lead to penalties, interest on unpaid amounts and possibly a tax audit, which puts a business in poor standing.

South African business solutions provider Times 3 Technologies has extensive experience of EMP501 submissions and has developed a handy checklist for businesses to ensure compliance. The company advises the following:

• Start early: When it comes to preparing for tax season, reconcile payroll data early. The last-minute rush is a stress nobody needs or wants.
• Accurate employee information: Make sure all staffers’ identity and tax reference numbers and other relevant information are correct.
• Align payroll figures: PAYE, UIF and SDL figures must match the amounts paid to the revenue service throughout the tax year.
• IRP5/IT3(a) certificates review: During the reconciliation process ensure all employees’ IRP5/IT3(a) certificates are correct.
• SARS tools: The revenue service offers SARS EasyFile Employer software or eFiling to assist in making submissions accurate.
• Thorough review: Oversight is a common mistake when submitting to SARS so go through the EMP501 form again carefully.
• Meet the deadline: August 30 is the cutoff date for submissions. Ensure it’s met to avoid penalties.
• Retain records: All EMP501-related documents and confirmation of submission must be kept on record. This is necessary for when a business might need to challenge SARS on a particular aspect.

Times 3 Technologies director Stephen Howe says aligning payroll figures is one of the most important items on the list. Particularly for business that still rely on manual inputting, human error can easily occur.

It is for this reason that more businesses are turning to software solutions that not only save time in terms of recording payroll items but also eliminate human-born mistakes.

“One of the biggest benefits of this software is that it is fully integrated and provides a single database for all your payroll and HR data. When working out your SARS submission this is extremely useful,” Howe says.

“Further, the fact that it is automated means the reconciling process is greatly streamlined. The software comes with tools that actually help you avoid potential errors.”

One of South Africa’s most popular payroll and HR software solutions is Sage 300 People, as it includes many of the features Howe describes.

About Times 3 Technologies (T3T)

Times 3 Technologies (T3T) is an established South African Sage business partner and provider of Sage business software and implementation services. Sage, established in 1981 in the UK, is the third-largest software company in the world. T3T, a leading Sage partner, resells Sage Enterprise Resource Planning (ERP) and Payroll & HR software, customising its implementation to clients’ specific needs through the following main products and services: Sage X3 (formerly known as Sage Enterprise Management), Sage Intacct, Sage 300 People, Strategic Customised Developments, and Implementation Service and Support. The subscription cloud-based financial-management applications and services enable businesses to tailor a solution covering finance, procurement, distribution, inventory management and manufacturing and facilitate payroll and HR functions. The T3T team has in-depth experience in providing and fine-tuning solutions that suit a business’s needs and enhance its growth.

T3T holds Sage’s highest-ranking, ‘platinum’ status. With 30 years of successfully implementing business solutions across numerous industries and sectors throughout Africa, Sage has recognised T3T’s ongoing commitment to providing the best solutions by awarding dozens of accolades, including Partner of the Year, Top Implementation Partner, and Highest Customer Retention in AMEA (Africa and Middle East).