SARS Launches New Employer
Monthly Declaration Form (EMP201)
Important news for users of Pastel Evolution Payroll and Pastel Payroll
For all of those employers who are submitting their monthly declarations (EMP201s) to the South African Revenue Service, they will now be required to use a brand new EMP201 form for their March declarations (this will be due on 7 April 2010). Sadly, SARS will no longer be accepting the outdated EMP201 form. All employers are now obligated to finish their monthly declaration and to then submit it to SARS before the seventh of each month according to the provisions of the Fourth Schedule to the Income Tax Act 58 of 1962.
This new form is part of their efforts (spanning over the past two years) to introduce some modern, simplified tax processes – this is in line with global best practices. This has seen the virtual transformation of the tax process from a paper-based, highly-intensive process to an automatic one that anyone can make use of.
The employers will need to only declare payments from now on; as well as liabilities. This is based on information on the new form. You will receive a totally unique 19 digit PRN (Payment Reference Number) that will populate the form before you even set eyes on it. Liabilities will be reconciled by the employers during the Employer Tax Season by way of the EMP501 form (Employer Reconciliation Declaration). Credit amount will need to be reallocated and previous declarations by employers will need to be adjusted accordingly. When a query or payment is lodged, the PRN will need to be used.
The EMP201 form has integrated itself well into the payroll structure and as an employer, you would only need to make a single payment for the PAYE (Pay As You Earn), UIF (Unemployment Insurance Fund) and SDL (Skills Development Levy). Payments such as these would then be recorded as employer provisional liability. A month ago, SARS launched their user-friendly guide to the EMP201; this was to help all employers get up to speed with the new form, as well as the payment requirements.
Contact either Michelle or Paul to assist you with your Pastel payroll software and updating the e-filing website with your new EMP201 forms.
» Download the SARS EMP 201 form document in PDF (763 kB) or ZIP (445 kB).
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