{"id":7168,"date":"2023-06-12T12:03:12","date_gmt":"2023-06-12T10:03:12","guid":{"rendered":"https:\/\/www.sysfinpro.com\/?p=7136"},"modified":"2023-06-12T12:19:22","modified_gmt":"2023-06-12T10:19:22","slug":"kb20210729-01-sage-300-people-tip-trick-employment-taxes-validation-etv","status":"publish","type":"post","link":"https:\/\/www.sysfinpro.com\/index.php\/kb20210729-01-sage-300-people-tip-trick-employment-taxes-validation-etv\/","title":{"rendered":"KB20230614\/01: Sage 300 People – Employment Taxes Validation (ETV)."},"content":{"rendered":"\n
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Obligation to deduct correct amount of PAYE every month<\/h2>\n\n\n\n

Employers are obligated to deduct the correct amount of employees\u2019 tax (PAYE) from an employee\u2019s remuneration and to declare and pay such amount to SARS on a monthly basis. The amounts declared by the employer on the EMP201 monthly return is the total amount of all PAYE deducted from all employees during the relevant month. <\/p>\n\n\n\n

This means that the employer cannot deduct amounts, which are more or less than the amount that is properly deductible according to the employee\u2019s remuneration tax rates. For this reason, the employer should not have an under or over deduction of liability unless the employee requested the employer in writing to deduct an additional amount of PAYE.<\/p>\n\n\n\n

Employers are obligated to re-calculate the final tax liability at the end of the employee\u2019s year of assessment, or when the employee resigns, is retrenched or dies before the end of the year of assessment. However, this often only happens when the reconciliation is prepared (up to 60 days after the end of the year of assessment). The re-calculation of tax may then result in an over- or under-deduction of tax.<\/p>\n\n\n\n

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Tax Calculation Process<\/h2>\n\n\n\n

From the 2020 year of assessment, SARS is performing tax calculations on the IRP5\/IT3(a) certificates. Where it is found that the incorrect amount of tax was deducted from the employee, a letter will be issued, accompanied by a file containing a list of the certificates that have failed the SARS calculation.<\/p>\n\n\n\n

The tilde (~) delimited text file containing the reasons for the failure(s) will also be sent to the submitting channel.<\/p>\n\n\n\n