TAX: The SARS Mid Year Tax Submission Process
Recent Gauteng Business News
“The submissions require a large amount of additional information. HR and payroll managers need to ensure they have captured all relevant data into the payroll to guarantee a successful submission to SARS, as well as avoid penalties for late or incomplete submissions,” says Schmikl.
Previously SARS required an annual tax submission; however, Schmikl says the new system will not only ensure that companies are submitting information more regularly to SARS, but that all employees are registered for income tax. “Employees who are not required to submit tax returns will still be registered and will also receive an income tax number,” says Schmikl. She says the process may be made easier with a possible electronic registration process.
Schmikl says employers can expect the following information to be a requirement for the next submission of tax certificate information to SARS:
* ID or passport number
* A contact telephone number
* Employee addresses
* Directive numbers
* Bank account details for employees who are paid electronically
In terms of directives, Schmikl says that it is important to note that the taxation of certain share gains is subject to the application of tax directives. “Many employers merely taxed the gains at 40 percent, but SARS will in future validate the IRP5 and require a tax directive number.”
She says it is vital that employers adopt the correct procedures now to ensure they are able to not only meet the deadline, but also submit the correct information. “A reputable payroll solution is the best place to start for companies of all sizes. It immediately reduces the burden and makes, what may seem a daunting task, into a simple monthly payroll requirement.”
Business News Sector Tags: Finance|