Follow These Procedures for Your Tax Year End at the End of February

SARS IRP5 / IT3(a) procedures on Payroll Africa

Follow these procedures for your tax year end at the end of February

SARS IRP5/IT3(a) > Setup SARS Codes > Print Certificates > Transfer to Stiffy

SARS Tax Year end (end of February)
Payroll Africa will generate the required documentation in printed format (for employee and employer) and electronic format (for Receiver of Revenue). It is compulsory to issue every employee from whom employees tax has been deducted with an IRP5 certificate. If no employees tax was deducted from the employee's remuneration, an IT3(a) form will be generated instead.
All income and deductions must be classified according to the specified codes as stipulated by SARS. Please note that the certificate will be rejected by the Receiver if it does not contain the mandatory information as required.
Manual certificates
Pre-printed manual certificates are available from any Receiver of Revenue office and can be collected or requested in writing. However, it is not necessary if using the electronic method as specified below.
Electronic certificates
The IRP5/IT3 (a) certificates are printed and then saved electronically to stiffy diskette. Payroll Africa generates this automatically. Please note that the information may only be presented to the Receiver on disk or CD. No computer generated forms will be accepted. You are, however, permitted to submit a combination of manual certificates and electronic certificates. The disks or CDs can be submitted to your local Receiver of Revenue.
Both IRP5 and IT3(a) forms may be combined onto one file, which will be saved onto the disk or CD. The number ranges must be filled in on an IRP 501 reconciliation.
Validation tests performed on Electronic Media
The disk or CD will be rejected if any of the following conditions are met.
· The disk contains a virus;
· Any unmarked bad sectors are detected by a surface scan;
· The disk is unreadable;
· The PAYE reference number is not a valid, allocated reference number;
· The "generation number" is not sequential to the previous generation number submitted;
· The IRP5/IT3 numbers are not consecutive;
· The mandatory fields are blank.
If a disk is rejected, it will be returned to you together with an error report stating the reason's for rejection. Please contact our office for assistance if this should happen.
After the fourth consecutive rejection, no further disks or CDs will be accepted. In such a case, all certificates will have to be replaced by manual certificates. Rejections due to non-sequential "Generation numbers" will not be taken into account.

Procedure

1. Run a tax check by going to Pay Inputs > A Pay Inputs and click on the Tax Check button. Specify the tax year, e.g. 2007 for tax year March 2006 to February 2007. Also select pay periods. Please note, on a weekly pay system, if your tax year begins on 1 March, then the first pay date for this period would be the week ending 7 March.Select your printer and click OK to proceed. The report displays two columns for each figure. One is a calculated figure based on the actual fields and the other is the balance field as it is in the last pay period. There should be no differences between the relevant columns. If there are differences, then contact a Donkerhoek Data Consultant to assist you.
   
2. Print the year's Tax Summary Report at Reports > E General Reports > Previous Pay Periods > Tax Summary. Ensure that the correct pay dates are selected. These figures should agree with the employees' printed certificates.
3. Print the tax setup to help you set up SARS codes (IRP5 / IT3(a) > A Print Tax Setup). All fields will be listed with the tax percentage printed below some of them (where applicable, e.g. overtime is 100% taxable, travel allowances is only 60% taxable). Annual payments are indicated with a "B".

Fig. 1:Select which printer to print the tax setup to.

Fig. 2:Tax Setup

1. Select IRP5 / IT3(a) > B Setup SARS codes.
2. Specify the tax year, e.g. 2007 for tax year March 2006 to February 2007. Also select pay periods. Please note, on a weekly pay system, if your tax year begins on 1 March, then the first pay date for this period would be the week ending 7 March. Click OK to proceed.
3. If you were using Payroll Africa the previous tax year and have already used this method of generating certificates, then click on Copy Previous Year's Setup. This will copy the setup from the previous year. Please note, if any system parameters (setup) or pay field changes were made during the course of the year, please check that the same codes are still applicable.
4. The program displays all fields that existed during the selected pay periods with its field numbers, description, tax status and periods it existed. To allocate SARS codes to all relevant fields, double click on each field and first select the applicable tax code type. Then click the OK button. A list of the relevant codes will appear. Please refer to Help text on the right. Click on the specific code and then the OK button. Select the relevant RF Indicator and click the OK button. When a code has been allocated to the relevant fields, click on the OK button at the bottom of the screen. Refer to the EMP 10 tax guide for employers or consult your auditor if unsure about any of these settings.
   

Fig. 3: Select the pay periods to set up SARS codes for.

Fig. 4: A progress bar runs while Payroll Africa gathers employees information. Then the SARS codes screen is displayed.

Fig. 5:SARS Tax Codes screen

Fig. 6: Select the tax type

Fig. 7:Enter the tax code

Fig. 8: Select the RF Indicator

1. Go to IRP5 / IT3(a) > C Print Certificates to print the IRP5 and IT3(a) certificates for both employees and the employer. TAKE NOTE: Even if you only print it to screen, this option MUST be run before the certificates can be transferred to stiffy.
2. The program prompts you to enter a range of employees and groups. Refer to help text on the right. You do not have to enter any employee numbers if all of them are to be printed.
3. Select the tax year and printer, then click OK at the bottom of the screen.
4. Calculations will take place and the certificates will print.
   

If all the certificates have been printed, a Reprint certificates button will appear so you can reprint certificates for certain employees.

Fig. 9: Specify the employee groups when printing tax certificates.

Fig. 10: A progress bar is displayed while the process runs.

1. Transfer certificates to stiffy or CD for SARS.
   Choose IRP5 / IT3(a) > D Transfer to Stiffy. Complete all fields, select printer and click OK. The creator info just entered will be printed. Attach this report to the stiffy disks.
   

Fig. 11: Enter the creator info.

Test/Live Electronic certificates marked as "Test" will not be processed by SARS. Do this first to be warned against possible certificate errors. You can mark the stiffy "Live" when SARS has informed you that all certificates are correct. It will then be accepted and processed.

File Destination Select which drive to store the electronic certificates on. The computer's hard drive is C: and A: means stiffy.

A message will inform you on how many certificates are stored on the stiffy. This figure must be entered on the EMP 501.

Please contact us if you should require any further assistance.