Anything involving SARS is usually an intricate and complicated matter. Whether it is submitting your tax returns or submitting payrolls for midyear. If your payroll is submitted incorrectly it could end up costing your company money. Their systems seem to be out of date, but it is always in your company’s best interest to get it out of the way as soon (and efficiently) as possible. Here are a few things to keep in mind.
Things to keep in mind:
- SARS requires certain information for a valid tax certificate to be issued. Be sure to have all employee’s information up to date;
- On the IRP5 Validations, there will be a list of outstanding information;
- Once the submissions are done and accepted by SARS, they will issue a certificate for each employee which you must give to them; and
- If SARS decides you have paid too much tax, you will receive a tax refund.
Things you must do:
- Make sure that if any employees’ or company information has changed that it is updated on the SARS system;
- Make sure you are not missing out on submitting any deductibles;
- Make sure you are up to date with any changes in the Tax Law;
- Even if your taxes are under R350 000 a year, you have to submit to SARS otherwise they believe you are trying to evade your taxes which will cause heavy fines. Any form of income from any source needs to have a tax number and submit taxes;
- Make sure you claim tax free reimbursement for any business travels;
- Make sure you keep proof of all documentation submitted to SARS as well as the payment thereof; and
- Make sure you claim for any charitable donations you have made.
Things NOT to do:
- Do not under any circumstance try to hide any information such as bank accounts; extra income, investments, etc. from SARS because when and if SARS finds out, you will be heavily fined;
- Not declaring any income that have already been taxed;
- Do not make mistakes on the forms, whether it be the spelling of names or amounts. SARS checks your ID and name against the records of the Department of Home Affairs and if it does not match you can be blocked from completing your tax return; and
- Have your employees check their IRP5 forms before submitting them to SARS as the fields will not be changeable once it has been submitted, unless you resubmit which will can cost you money in fines.