What’s new? 16 May 2019 – Changes on the Statement of Account On 26 April 2019 we introduced changes to the Payroll Taxes Statement of Account (SOA) in an attempt to address complaints received from employers about errors occurring on the SOA. The SOA shows the balance and detailed transactions for a tax year for Pay-As-You-Earn (PAYE), the Skills Development Levy (SDL), the Unemployment Insurance Fund (UIF) and the Employer Tax Incentive (ETI).
The purpose of this statement is to supply the employer with an overview of the financial transactions for the various payroll taxes and to ultimately enable employers to complete and submit their Employer Reconciliation Declaration bi-annually. To ensure that the information contained in this statement is clear and comprehensible, we have amended the manner in which financial transactions are being displayed.
Some of the key enhancements include: Descriptions were enhanced to provide employers with a better understanding of the two types of transactions reflected i.e. liability and non-liability transactions All liability transactions are now grouped together and sorted in transaction date order with the exception of non-financial transactions with a date earlier than the first day of the period The addition of a receipt number for payments and journals will allow employers to uniquely identify payments and reconcile them back to their bank statements ETI transactions which have no impact on the PAYE account, have been grouped together and will reflect at the bottom of the Statement of Account.
See the SOA example and explanatory notes for more information. What is the Employer Account? The Monthly Employer Declaration (EMP201) and payment process provides employers with an easier and more effective means to manage their Pay-As-You-Earn (PAYE), Skills Development Levy (SDL), and Unemployment Insurance Fund (UIF) accounts. In the past, employers had to request the SARS staff to make payment re-allocations and corrections on their behalf. The introduction of the EMP201 and payment changes is aimed at empowering employers so that they can manage and become accountable for the accuracy and completeness of their own accounts. This shift in accountability and focus will be achieved by providing employers with the ability to: Amend their declarations and payment allocations using the EMP201 View their accounts in order to identify and follow-up incorrect/missing transactions using the consolidated Employer Statement of Account (EMPSA) and query function
Correct unallocated payments. Account management is about making sure that your financial (or tax) account is up to date and correct. In other words, that all the necessary tax filings are correctly reflected, payments have been correctly allocated, and that all charges to your account (including adjustments, interest and penalties) have been correctly calculated and recorded.
The aim is to place an employer in a position where they are able to manage their financial responsibilities independently, in an effective and efficient manner.
Who is it for? SARS has made provision for an employer to manage their own account with a number of functions and tools: A EMP201 and Payment reference number (PRN) which enables you to change your declaration and reallocate your payments more easily A redesigned EMPSA that consolidates PAYE, SDL and UIF on a single statement with supporting explanations and notes for easier interpretation Online access to your financial accounts. Not only can you view and query transactions processed against your accounts, but you can now also adjust these transactions in real-time A case management system where you are able to log account errors or omissions which you are unable to fix yourself or which you would like to query, including a means to monitor and track SARS’s progress in resolving your query.
Account management should be a quick and simple process provided you used the PRN correctly when filing and paying your EMP201.