Tax certificate submission

Click on Tax certificates from the menu menu. If the Tax Certificate option is not available, click on More…Tax certificates.

At the end of each tax year, employers must issue tax certificates to all employees who worked during the tax year (March to February). Employers must also send copies of the tax certificates as well as a reconciliation to SARS. SARS also requires a mid-year reconciliation to be submitted. This submission generates tax certificates to issue to your employees and also generates the file you need to import into e@syFile.

Employee information

SARS requires certain information in order for a valid tax certificate to be generated. Before generating tax certificates, ensure that all employee information is complete. Employees with outstanding information will have a yellow triangle in the top right corner of the employee tile.

Go to the Employee Details view, and click on the IRP5 Validations button at the top right of the view. A list of outstanding information will be listed. If you click on any item in the list, you will be taken to the relevant section of the view to complete the outstanding information.

The validation icon will no longer display when all the required information has been completed.

Employer information

SARS requires certain information in order for a valid tax certificate to be generated. Before generating tax certificates, ensure that all employer information is complete.

If there is missing employer information, a Company IRP5 Validations button will display in the bottom right corner of the Company Details section on the Tax Certificate Submission view. Click on this icon to go to the Company Details view.

Once on the Company Details view, click on the IRP5 Validations button at the top right of the view. A list of outstanding information will be listed. If you click on any item in the list, you will be taken to the relevant section of the view to complete the outstanding information.

The validation icon will no longer display when all the required information has been completed.

Creating the tax certificates, reconciliation reports and e@syFile file

Submission details

Select the tax year. Select the tax year for which you want to do a submission.

Example:
You want to do a submission for August 2013. This is part of the 2014 tax year, so select ‘2014’ from the list. Select the submission period. Select the period of the tax year you want to do a submission for. The options are:

  • Mid Year (first 6 months of the tax year), and
  • Tax Year End (full tax year).

The mid year submission is normally due by the end of October and the tax year end submission is normally due by the end of May.

At the end of each tax year, employers must issue tax certificates to all employees who worked during the tax year (March to February). Employers must also send copies of the tax certificates as well as a reconciliation to SARS.
You can generate tax certificates and the file to import into e@syFile once:

  • you have rolled your company out of February and
  • you have made payment for all payroll periods processed in the tax year.
Select the type of submission

You have the option to do generate Live certificates or to do a re-submission. Your first submission for a specific period will always be a Live submission. Tax certificates are generated for all employees in your company with any financial values that have to be reported to SARS.

A re-submission is done if you have to submit corrections to a submission already made to SARS. You can do a re-submission for all or selected employees.

Cycle details

Once you have made your selections, a list of cycles that fall within the selected reporting period is displayed. The Create tax certificates button will only enable if all the cycles in the selected period are valid.

You can do a mid year submission if:

  • the cycles have rolled past August, or
  • the cycles have been flagged as closed.

Cycles should only be flagged as closed if they are no longer in use (i.e. the company/division has closed). You can do a tax year end submission if:

  • the cycles have rolled past February, or
  • the cycles have been flagged as closed.
Create tax certificates

Click on the Create tax certificates button once all your selections have been made and all cycles included in the submission are valid.

An error report is generated if there is outstanding or incorrect information required to generate valid tax certificates. All errors must be corrected before a successful submission can be done. Also take note of the warnings that are generated. You are still able to do your submission when there are warnings, but not making these corrections might result in admin penalties by SARS.

If there are no errors, the following popup will display:

Click on OK, then browse to the destination where you want to save the file. You need to type in a file name, then click on Save.

It is suggested that the file is saved to a local drive, as you cannot import files into e@syFile from a network drive.

Click OK on the message indicating that the file was successfully saved. Three tabs are now open on your Tax Certificate Submission view:

  • Tax Certificates: These are the individual tax certificates to print and hand out to your employees.
  • Reconciliation Report: This report gives a 12 month breakdown of each employee’s tax certificate values.
  • EMP501 Reconciliation Report: This report gives a monthly breakdown of your Tax, SDL and UIF values. Use this report as well as the EMP201s you submitted to SARS every month to complete the EMP501 reconciliation on e@syFile.