WIXLIB

TermPAYE PayablePayroll Authors ReconciliationDeclaration ReconciliationSubmissionProcess Refugee RepresentativeEmployerSARSSDL Levy SEZ SIC7 SITE Taxpayer TransactionYear UIF Contribution Y/N Year ofAssessmentDescriptionThe PAYE value less allowable ETI utilised.This refers to a group of companies who supply and supportcomputerised payroll systems on a commercial basisThe Reconciliation Declaration is the EMP501 document on whichan Employer’s PAYE, SDL and UIF liabilities are declared withassociated payments, certificate values and the resulting net effectof setting off payments against liabilitiesThis is the process through which an Employer submits all requiredPAYE, SDL and UIF documentation to SARS for processing i.e.IRP5/IT3(a),EMP501,EMP601 and EMP701 if applicable.Use EMP701 with the EMP601 with 8 digit certificate numbers toadjust reconciliation submissions submitted using the premodernisation process for 1999 – 2008 transaction years.The EMP701 is not applicable for transaction years 2009 onwards.A Refugee is any person who has been granted asylum in terms ofthe Refugees Act, 1998 and who is in possession of an identitydocument issued in terms of section 30 of the ActRefer to the definitions in the Fourth Schedule to the Income TaxActSouth African Revenue ServiceSkills Development Levy as referred to in Section 3 of the SkillsDevelopment Levies Act (no 9 of 1999)Special Economic Zone designated by the Minister of Trade andIndustry pursuant to an Act of Parliament (currently the SpecialEconomic Zones Bill, B3 of 2013), will be designated areas thatpromote targeted economic activities, supported through specialarrangements and support systems including incentives, businesssupport services, streamlined approval processes andinfrastructure. The tax incentives for these zones will be authorisedby the Minister of Finance, after consultation with the Minister ofTrade and Industry.Standard Industrial Classification (SIC Coder v7, as defined on theStatistic SA Website: www.statssa.gov.za)Standard Income Tax on EmployeesSITE is the portion of employees’ tax that is applicable only on theannualised net remuneration up to sixty thousand Rand.Any person who is required to be registered with SARS for thepurposes of income tax.The tax year during which the employer deducted and paidemployees’ tax in respect of remuneration paid or payable to anemployee. This could include employees’ tax on remunerationwhich accrued during a previous tax year.The Transaction year may only be a year subsequent to the ‘Yearof Assessment’ in the case of ‘Variable Remuneration’ as defined insection 7B and other exceptional circumstances.Unemployment Insurance Fund contribution determined in terms ofSection 6 of the Unemployment Insurance Contributions Act (no. 4of 2002)Y means YesN means NoThe tax year in which the remuneration paid or payable to anemployee accrued.SARS PAYE BRS - PAYE Employer Reconciliation V15 1 0Page 8 of 10607/2016

2INTRODUCTIONNote: The introduction has been re-written. For ease of use the deleted text is not shown.As part of its drive for better service, SARS has been modernising tax processes since 2007.Changes introduced are a vital part of SARS’s long-term vision to have a more accuratereconciliation process. The more information at SARS’s disposal means a less cumbersome taxprocess, as returns/declarations are increasingly pre-populated.The Employers Reconciliation Declaration (EMP501) has always been an important part of the yearof assessment for employers, when submitting their annual reconciliations for the period 1 March to28/29 February for Pay-As-You-Earn (PAYE), Skills Development Levy (SDL) and UnemploymentInsurance Fund (UIF). While the annual reconciliation declaration will still be required for the fullyear of assessment ending February, the interim reconciliation has now become an integral part ofthe Employer Reconciliation.The first Interim Reconciliation submission, for a six month period, took place from 1 September to29 October 2010. During the Interim Reconciliation employers are required to submit accuratereconciliation declarations for the six month transaction period 1 March to 31 August, in respect ofthe Monthly Employer Declarations (EMP201) submitted, the payments made, and the interimEmployee Income Tax Certificates [IRP5/IT3(a)] created, where applicable.These submissions can be made via one of the following channels: Manual – complete the relevant tax certificates and return on the specified forms on eFiling,and submit electronically to SARS or visit a SARS Branch for assistance Electronic – Generate a tax certificate file from the payroll system, and import this file intoe@syFileTM Employer. Within e@syFileTM Employer, capture additional manual certificates,cancel certificates, capture EMP501 details, and submit to SARS via the eFiling onlinechannel.The reconciliation and submission of tax certificates to SARS must take place within the datesannounced from year to year as the employer’s filing season. Failure to do so will result in penaltiesand interest.For information on the completion of manual certificates, please consult the guide e@syFileTMEmployer User Guide on the SARS website.SARS PAYE BRS - PAYE Employer Reconciliation V15 1 0Page 9 of 10607/2016

3OUTSTANDING ISSUESThere are no outstanding issues4GENERAL RULES FOR IMPORT FILE STRUCTURENote: General Rules for Submission and Tax Certificate and The Tax Certificate GeneralRules has been replaced with this section. For ease of use the deleted text is not showna. The record structure of the import file is as follows: Employer demographic header record Employee demographic, financial and ETI information records for all tax certificates Employer totals trailer record.b. Each import file may only contain information for one employer.c. The import file for an employer may contain the tax certificates of employees with a ‘year ofassessment’ equal to or prior to the ‘transaction year’.d. IRP5/IT3(a) and ITREG certificate type records may not be combined into one submissionfile. ITREG certificate type records must be included in a separate file due to the fact that thetransaction year may not be completed if the certificate type is ITREG.e. The format of all codes in the import file must be code,information (e.g. 3015,”IRP5”) ORcode,value (e.g. 3240,2) OR code,amount (e.g. 3601,5000 or 4102,500.00)f. No amounts may be reported as a negative valueg. A field that does not have a value must not be included, with the exception of the followingfields which can have a zero value and must be included if the qualifying circumstances forthat field is satisfied: Code 3615 (director’s remuneration) Code 3697 (Gross retirement funding income) Code 3698 (Gross non-retirement funding income) Code 3699 (Gross Employment Income [taxable]) Code 3240 (Employee Bank Account Type) Code 4005 (Medical aid contributions) only if a valid 3230 (Directive number) is specified Code 4115 (PAYE on retirement fund lump sum benefits and severance benefits) Code 4116 (Medical Scheme Fees Tax Credits) Code 4118 (Employment Tax Incentive (ETI)) Code 4120 (Additional Medical Scheme Fees Tax Credit) Code 4141 (UIF contribution) Code 4142 (SDL contribution). Code 7002 (Monthly Remuneration) Code 7003 (Monthly Minimum Wage) Code 7004 (Monthly Calculated ETI) Code 6030 (Employer Total Amount)h. The cents for all Rand amounts must be dropped off/omitted (rounded down) with theexception of codes 4101, 4102, 4115, 4141, 4142, 4149, 4116, 4118,4120, 6030, 7002,7003 and 7004 where the Rand value including the cents must be specified (even if it iszero).SARS PAYE BRS - PAYE Employer Reconciliation V15 1 0Page 10 of 10607/2016

i. The format for all dates must be either CCYYMMDD or CCYYMM or CCYYj. All Alpha, AlphaNumeric and Free Text fields (indicated with ‘A’, ‘AN’ and ‘FT’ respectively inFile Layout below) must be contained in opening and closing double quotation marks, e. g.the surname of Horn must be shown as 3020,”Horn”k. Data fields cannot start with a spacel. In order to reduce the volume of data, the number of income source codes is restricted to 20,and the number of employee and employer deduction codes is restricted to 12. To make thispossible, certain source codes have been specified as ‘sub-codes’ and their values must beconsolidated into a ‘main’ source code on the certificate. The rules for consolidation of subcodes into main codes can be obtained in section 6 of this document. Sub-codes may beheld within the payroll system, but must not be written to the import file or printed on taxcertificates.m. The monthly ETI data must be added to the end of the tax certificate information for everyemployee that qualifies for ETI. The ETI monthly data must be reported for the same daterange as that applicable to the PAYE data reported. The monthly ETI data must be reportedeven if the ETI values are zero for that month. For the interim bi-annual submission, 6months of ETI data (from March until August) must be reported, and for the final submission,12 months of ETI data (from March until February) must be reported. If the employee doesnot qualify for ETI for a certain month, zeroes must be reported for the ETI amounts for thatmonth.n. Tax certificates require at least one income code with a value greater than zero, except forremuneration in respect of code 3615, which may be zero.5FILE LAYOUTThis section lists all the fields that are required for the file in a table format.The definition of each column heading is as follows: The definition of the column headings in thissection are as follows: Name: the name of the relevant field associated with the code. Code: the source code that must be used to indicate the relevant information. Length: indicates the type and maximum number of characters or digits that may be entered forthe field.o N - numeric field.o A - alpha field.o AN - alphanumeric field.o FT - free text field. Length: the number of characters that the field may consist of, and the type of field:oN indicates a numeric field.oA indicates an alpha field.oAN indicates an alphanumeric field.oFT indicates a free text field.oThe number indicated after the above indicators indicate the maximum number ofcharacters or digits that may be entered for the relevant field. Description: a brief description of the field and the information required for that field;SARS PAYE BRS - PAYE Employer Reconciliation V15 1 0Page 11 of 10607/2016

Validation rules: the validation rules that must be complied with to ensure that the informationdeclared is acceptable to SARS.Note: An indication whether the field is required is also specified in the validation rules andcan be one of the following:o Mandatory: Implying the field must always be completedo Conditional: Implying the field must always be completed under the defined conditions, elsethe value must not be reportedo Optional: Implying the field can be completed if possibleNote: When an optional field is completed, full validation will be done on this field and anyother fields linked to this code will become mandatory A field that does not have a value must not be included in the CSV record, with the exceptionof the following fields which can have a zero value and must be included if the qualifyingcircumstances for that field are satisfied:oCode 3615 (director’s remuneration – refer to par.2.f under “General rules forsubmission and tax certificates)oCode 4005 (Medical aid contributions) only if a valid 3230 (Directive number) isspecifiedoCode 4115 (PAYE on retirement lump sum benefits)oCode 4116 (Medical Scheme Fees Tax Credits)oCode 4141 (UIF contribution)oCode 4142 (SDL contribution).oCode 3615 (director’s remuneration – refer to par.2.f under “General rules forsubmission and tax certificates)oCode 3697 (Gross retirement funding income)oCode 3698 (Gross non-retirement funding income)oCode 3240 (Employee Bank Account Type)oCode 4005 (Medical aid contributions) only if a valid 3230 (Directive number) isspecifiedoCode 4115 (PAYE on retirement lump sum benefits)oCode 4116 (Medical Scheme Fees Tax Credits)oCode 4118 (Employment Tax Incentive (ETI))oCode 4141 (UIF contribution)oCode 4142 (SDL contribution).oCode 7002 (Monthly Remuneration)oCode 7003 (Minimum Monthly Wage)oCode 7004 (Monthly Calculated ETI)SARS PAYE BRS - PAYE Employer Reconciliation V15 1 0Page 12 of 10607/2016

NameCodeEmployer InformationDescriptionLengthTrading or OtherName2010FT90Name or trading name ofemployer issuing the certificate TEST / LIVEindicator2015A4TEST or LIVE submissionindicatorPAYE ReferenceNumber2020N10The reference number of theemployer. SDL ReferenceNumber2022AN10This is the PAYE number underwhich employees’ tax deducted ispaid to SARS. Alternatively if theemployer is not registered forPAYE it will be the Income Taxreference number of theemployer.Skills Development Levyreference number of the Employer UIF ReferenceNumber2024AN10Unemployment Insurance FundReference Number for Employeras issued by SARS, and not thenumber issued by the UIF.SARS PAYE BRS - PAYE Employer Reconciliation V15 1 0Page 13 of 10611/2015 Validation RulesMandatory fieldFirst code of record of the electronic file and may not bepreceded by any other character (e.g. space, comma, etc.).Mandatory fieldMust consist of 4 charactersValue may only be TEST or LIVEThis field is only applicable when uploading from CSV formatIf the certificate type is ITREG this value must be LIVE.Mandatory fieldMust consist of 10 numeric charactersWhere the employer is registered for PAYE purposes thenumber must start with a “7” and where the employer is notregistered for PAYE purposes, the number must start with either0, 1, 2, 3 or 9Code 4101, 4102 and / or 4115 is invalid if the number does notstart with a “7”Must be a valid reference number (apply modulus 10 test).Mandatory if registered for SDLMust consist of 1 alpha and 9 numerical charactersMust start with an “L”Must be a valid reference number (apply modulus 10 test)If PAYE reference number is completed, last 9 digits of SDLreference number must be the same as last 9 digits of PAYEreference number, except if the PAYE number starts with 0, 1, 2,3 or 9If the UIF reference number is completed, the last 9 digits of theSDL number must be the same as the last 9 digits of the UIFreference number.Mandatory if registered for UIFMust start with a “U”Must be a valid reference number (apply modulus 10 test)If PAYE reference number is completed, last 9 digits of UIFreference number must be the same as last 9 digits of PAYE

NameCodeEmployer InformationDescriptionLength EmployerContact Person2025A30Indicates the contact person's fullname and surname for allreconciliation related queries.Indicates the contact telephonenumber for contact person for theemployer.EmployerContact Number2026AN11Employer E-mailaddress2027FT70Employer e-mail addressPayroll Software2028FT12Transaction Year2030Period ofReconciliation2031 Validation Rulesreference number, except if the PAYE number starts with 0, 1, 2,3 or 9If the SDL reference number is completed, the last 9 digits of theUIF number must be the same as the last 9 digits of the SDLreference number.Mandatory. MandatoryOnly numeric values are allowedNo spaces are allowedMust be at least 9 characters long is not allowed.OptionalAddress must contain an @ sign;Address must contain a domain which must be indicated with adot (.).Indicates which Payroll Softwarepackage is being used. OptionalIf you are not using a commercial software package the word“In-house” may be usedN4The year of assessment duringwhich the employer deducted andpaid employees’ tax in respect ofremuneration paid or payable toan employee, e.g. 2011 for the2010 interim submissionN6This period indicates thesubmission period toaccommodate multiplesubmissions in a year. Mandatory fieldMust consist of 4 numeric charactersFormat: CCYYYear cannot be less than 1999Year cannot be greater than current calendar year plus oneIf the certificate type is ITREG this field must not be completed.Mandatory if the transaction year is greater than 2010Format CCYYMM (Century, Year, Month); e.g. where thereconciliations must be submitted for period ending February2011, the period must be completed as 201102 or if thesubmission is for period ending August 2010, the period must becompleted as 201008SARS PAYE BRS - PAYE Employer Reconciliation V15 1 0Page 14 of 10611/2015

NameCodeEmployer InformationDescriptionLengthEmployer SIC7Code2082AN5The Employer Standard IndustryClassification CodeEmployer SEZCode2083AN3The Employer’s Special EconomicZone CodeEmployer TradeClassification2035N4EmployerPhysicalAddress: hysicalAddress: StreetNumberEmployerPhysicalAddress: Street /Name of Farm2061AN8The activity code according to theVAT 403 Trade Classificationguide applicable to your business.Indicates unit number of thephysical address of the employer.2062FT2620632064 This field must be a valid period in the transaction year specifiedIf the certificate type is ITREG this field must not be completed.Conditional:o Mandatory if Period of recon is 201402 or later Use the 5-digit sub-class Only numeric values are allowed Only valid if Period of Recon is 201402 or laterNote: A list of valid SIC7 codes is attached in Appendix C Optional Only valid if Period of Recon is 201402 or laterNote: Payroll Systems can default this field to ZAR or leave it blank.SARS will provide a list of SEZ codes once the Minister of Financeprovides a list A list of SEZ codes will be published on the SARSwebsite once approved

o ETI Source Code (4118) o Employer SIC7 Field o Employer SEZ Field o Employee SIC7 Field o Employee SEZ Field o Employee Business Address Rule is now mandatory o ETI Supporting Data (Monthly Salaries) - Appendix C 3. SIC7 Codes in Appendix E December 2013 V12.1.2 Document Update SARS