Dear Reader,

In this bulletin:

• Are you ready for the 2010 employer tax season?
• What you’ll need to submit when you make your Employer Reconciliation Declaration
•  If you don’t pass the spelling test, then you can’t pay SARS by cheque

Are you ready for the 2010 employer tax season?

Hopefully, you’ve spent the last few weeks preparing for the 2010 employer tax season, which occurs from 1 April to 31 May 2010. If so, then you’ve:

• Collected your employees’ demographic info, and have registered them with SARS for a tax reference number;
• Collected new EMP201 forms (i.e. the Employer Monthly Declarations — one for each month between March 2009 and February 2010). If you only have old EMP201 forms, then make sure you download the new version, and complete it for each month. SARS won’t accept the old forms;
• Declared your liability for each month, and made actual payments.

And if you've done all of this correctly, then you’re ready to complete and submit your Employer Reconciliation Declaration!

What you’ll need to submit when you make your Employer Reconciliation Declaration

To complete and submit your Employer Reconciliation Declaration, you’ll need to complete the following:

• the new mandatory employer information on the EMP501 form (your company address, bank account details, contact details, etc);
• demographic and financial information relating to the IRP5/ IT3(a); and,
•   a Reconciliation Declaration Adjustment (AMP701) form, should you need to update a declaration made for previous years. In this case, you’ll also need submit the respective IRP5/IT3(a) certificates.

If you make use of the e@asyFile software, then look out for the launch of the newest version of e@syFile Employer on 1 April 2010. You’ll need it to make this submission without any hiccups.

We’ll keep you updated on the employer declaration process, especially the bi-annual PAYE reconciliation in August 2010. In the meanwhile, here’s a newsflash…

If you don’t pass the spelling test, then you can’t pay SARS by cheque

As of 1 April 2010, banks will no longer accept payment by cheque, where the abbreviation “SARS” has been used. You’ve got to spell it out in full: South African Revenue Services.

This is a measure introduced by SARS, to cut down on fraud, and also to prevent taxes being paid to companies with the same abbreviated name.

Until next week,

Fulvia Becatti,

Managing Editor: Practical Tax Handbook & Practical Vat Handbook.