We provide a toolset that provide companies the Functionality to handle Retroactive Earnings & Deductions after February Payroll Month, to be Taxed within the Current Tax Period.
This Eliminates changes to the Previous Periods EMP201's
No more Interest and Penalties from SARS!
No more Additional Tax Provision in March!
Tax provision is made at the end of February to cater for Retro Adjustments in March and April of each year.
This Tax is paid over to the Receiver of Revenue with the February tax payment..
This amount can either be over estimated or under estimated.
In the last instance, penalties and interest are calculated b the Receiver on "late payment of tax".
With the Retro Tax Handler's functionality the estimated tax calculaton won't be necessary.
IRP5 electronic files can be submitted as soon as balancing is completed.
With the Retro Tax Functionality any earnings captured in the previous tax year, will accrue and be taxed in the new tax year.
At the end of February payroll month, the tax reconsiliations and balancing of IRP5's can be completed and electronic files can be submitted.
The tax year on SAP can still be kept open after February Payroll Month for a number of periods required by business.
This is to complete/ capture all master data for the previous Tax year.
Retro earnings captured during this period will accrue and be taxed in the current tax year if the SAP Retro Tax Handler is activated.
SARS is planning to increase submission in the near future to uarterly and eventually to monthly.
The advantage to employees as tax is current period will be less than the tax in the previous tax year, because of lower tax rates or the same earnings.
In the event of receiving mass AWOP's etc. for a previous closed tax year, the following functionality exist:
Open the tax year per apyroll area.
Open the tax year per Employee or Group of employees.
Open the Tax Year for a specific Payroll period.
No EMP201 or amended IRP5 needs to be issued.
No penalties or interest will accrue on this tax paid over, as this tax was deducted in the current period, which is the new tax year.
In the event of receiving promotions/ demotions back dated to the previous tax year, there will not longer be Manual Calculations or Adjustments on the following: