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SARS Submissions

Employers are required, twice a year, to reconcile their IRP5 / IT3(a) tax certificates; the EMP201/EMP501 statements; and the actual payments made to SARS, by using the [email protected] software provided by SARS. The February 2020 reconciliation relates to the full 2020 tax year (March 2019 – February 2020).

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[email protected] Software

The current version of [email protected] is 7.0.3, we will communicate should there be a version update prior to the commencement of the filing season.

The csv file on PaySpace is available for download. Please note that the Payspace csv file is only compatible with [email protected] and not eFiling.

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Submission Period

The submission period for the Annual PAYE reconciliation declaration is Wednesday, 15 April 2020 to Sunday, 31 May 2020.

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How can we help you?

PaySpace has compiled two specific options to help you through your submission obligations and make the process as seamless as possible. (Please refer to Option 1: Do it yourself or Option 2: Let us do it!)

VERY IMPORTANT!

If the EMP501 was submitted on [email protected] prior to the filing season opening (15 April 2020), the file will need to be resubmitted on the latest version of [email protected] once filing season has opened. If the file is not submitted on the latest version or is submitted prior to filing season-opening, the declaration may reflect as outstanding and may result in penalties for non-submission.

What are your options?

Click on one of these choices to better understand your options for this years RSA Filling Season.
  • Please follow the instructions in this submission guide to check your figures and extract the electronic file to upload into [email protected]
  • After you have reconciled your figures, downloaded, installed and configured the [email protected] software you can read in the electronic file produced from PaySpace, input the PAYE, SDL, UIF and ETi figures that you have paid SARS throughout the tax year and submit the results (the EMP501 reconciliation as well as the certificate electronic file) to SARS via [email protected]
  • Please be aware, that to the extent that any bugs are identified on [email protected] during filing season, SARS may release further updates to [email protected] . It is therefore essential to do regular backups of [email protected] if anything has been changed on [email protected] after your last backup and prior to submission. It is not unheard of for the auto backup that happens during the update to fail.
  • SARS will provide a high-level guide on using [email protected] that can also be downloaded, however, in the likelihood that you may have any further questions relating directly to the [email protected] software specifically and you feel that SARS cannot assist you, you have the option of purchasing a support package from PaySpace at a cost of R948.00 excl. VAT per hour. Please note, although the [email protected] software is able to produce IRP5’s we advise that you do not print the IRP5’s from the [email protected] software.
  • Please do not use prior versions of the [email protected] software, the new version must be downloaded from the SARS website before commencing your process. The [email protected] software requires that you upload an electronic file that must be obtained from PaySpace provided that you were using PaySpace prior to March 2020.
  • Manual certificates will need to be manually captured on [email protected], or manually updated where the certificates were manually created for the mid-year submission. These individual certificates or certificate ranges can be printed from [email protected]

We can handle the entire submission process on your behalf:

  • For customers with less than 150 employees in a single company, a fee of R4 740.00 excl. VAT will be applicable.
  • Customers with more than 150 employees or more than one company will be charged on a time and materials basis at R948.00 excl. VAT per hour with a minimum charge of R4 740.00 excl. VAT per company.
  • Please be advised that all charges above exclude any time taken to apply for tax reference numbers on behalf of the client. This will be billed on a time and materials basis (R948.00 excl. VAT).
  • Please note, the above fees apply to companies that give us notice of their intention to have us handle the submission process on their behalf before 14th May 2020. After this date the minimum fee will increase to R7 110.00 excl. VAT.

We simply will require the following from you should you select option 2:

A breakdown of all of your PAYE, SDL and UIF payments per month between March 2019 and February 2020. Although these details may already be on PaySpace provided that you have been with us since the beginning of the tax year, we will still require your confirmation of the actual payments made.

The Technical Stuff: SARS Changes

The following section will supply you with more information on SARS changes based on Tax Code/Field, the amendments and important comments of the change effective for February 2020 submission.
Tax Code/FieldAmendmentComments
7009: Monthly ETI SEZ CodeNew code effective 1 March 2019The code of the Special Economic Zone in which the employer operates through a fixed place of business and within which the employee mainly renders services to that employer, if applicable.
New note component added to PaySpace (ETI SEZ Zone).
3834/3884: Non-taxable Benefit – Loan to purchase Immovable Residential Property (Excl)New code effective 1 March 2019Non-taxable benefit – Low or no interest loan to purchase Immovable Residential Property as contemplated in par 11(4)(c) of the Seventh Schedule.
New deduction component with automated non-taxable fringe benefit component added to PaySpace (Loan Deduction Non Taxable)
4585: Employer’s pension fund contributions paid for the benefit of an employee or former employee who has retired from the fund and qualifies for the “no value” provisions in the 7th Schedule [par 12D(6)].New code effective 1 March 2016Where the employer is making contributions to a pension fund in respect of an employee or former employee who has retired from the fund, or in respect of the dependents or nominees of a deceased employee, please ensure that the field on employee basic profile “is this employee retired?” is ticked in order for the company contributions to go to the new tax code.
4586: Employer’s provident fund contributions paid for the benefit of an employee or former employee who has retired from the fund and qualifies for the “no value” provisions in the 7th Schedule [par 12D(6)]New code effective 1 March 2016Where the employer is making contributions to a provident fund in respect of an employee or former employee who has retired from the fund, or in respect of the dependents or nominees of a deceased employee, please ensure that the field on employee basic profile “is this employee retired?” is ticked in order for the company contributions to go to the new tax code.
Amendment to csv file Code 2025 (Employer Contact Person: First Name)Currently this field reflects both the name & surname of the contact person on the csv file. It should now only reflect the first name of the contact person.New Legislative field added to PaySpace on the Company Basic Information screen (SARS contact person first name).
Users will need to add the SARS contact person’s first name to this new field.
It is a mandatory field and the PaySpace csv file will generate an error if this field has not been completed.
New csv file Code 2026 (Employer Contact Person: Last Name)New field code effective 1 March 2019.
The surname was previously reflected with the first name on field 2025. It should now reflect separately on this new field.
New Legislative field added to PaySpace on the Company Basic Information screen (SARS contact person last name).
Users will need to add the SARS contact person’s last name to this new field.
It is a mandatory field and the PaySpace csv file will generate an error if this field has not been completed.
New csv file Code 2038 (Employer Contact Person: Position at Business)New code effective 1 March 2019N/A
Not a mandatory field.
New csv file Code 2039 (Employer Contact Person: Fax No)New code effective 1 March 2019N/A
Not a mandatory field.
New csv file Code 2040 (Employer Contact Person: Cell No)New code effective 1 March 2019This field on the csv file will return the contact person’s mobile number from this field in PaySpace: Company –> Basic Company Information –> Contact Details Tab –> mobile number.
Where there is no mobile number captured, it will default to telephone number from the following field on PaySpace: Company –> Basic Company Information –> Contact Details Tab –> telephone number.
New csv file Code 2029 (Payroll Software Package)New code effective 1 March 2019This field on the csv file will return the PaySpace edition to this field from the following field on PaySpace: Company –> Basic Company Information –> UIF, SDL, Other Tab –> edition.
New csv file Code 2037 (Diplomatic Indemnity Indicator)New code effective 1 March 2019This field on the csv file will return either a Y or N based on the following new legislative field in PaySpace: Company –> Basic Company Information –> Company Details Tab –> Diplomatic indemnity drop-down). Only apply to the IRP5 certificate, not IT3a certificate or ITREG file (left blank).
New csv file Code 3195 (Voluntary over deduction)New code effective 1 March 2019Where there are any travel components taxed at 100% (tax codes 3701; 3802; and 3816) or where additional tax has been processed, this field on the csv file will return a “Y” to this field to indicate yes, otherwise it will indicate “N” for No.
Only apply to the IRP5 certificate, not IT3a certificate or ITREG file (left blank).
New csv file Code 3220 (Fixed Rate Taxation Indicator)New code effective 1 March 2019If employee is on Tax status “Non Standard Employment” on the employee’s tax profile, a “Y” will be returned to this field, otherwise a “N” will be returned to this field.
Only apply to the IRP5 certificate, not IT3a certificate or ITREG file (left blank).

Keep in Mind

  • We advise that you gather as much information as you can relating to the new submission process as well as the new [email protected] software from the SARS website and familiarise yourself with everything in order that you are able to make an informed decision on the options above.
  • Should your submission fail to balance, SARS will issue a letter notifying you that your reconciliation submission was unsuccessful.
  • Under normal circumstances, an exception is made for employers with a maximum of five (5) IRP5/IT3(a)s. In such cases the employer can still go into a SARS branch where an agent will help them capture these IRP5/IT3(a)s and the EMP501.Please bear in mind the changes to some of the SARS branch processes in light of the nationwide lockdown and the continued fight to combat the spread of COVID-19. You can access the SARS website updates in this regard here. Please contact SARS should you be unsure about what process to follow.
  • Employers should either use eFiling (for 20 IRP5/IT3(a)s or less) or [email protected] (For 20 IRP5/IT3(a)s or more) to submit their declarations.

How can we help you?

If you are unsure of any of the information above please do not hesitate to contact us and we will gladly explain the different options in a bit more detail.