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Checklist: Preparing for and processing Tax Year-End

Compliance

Checklist: Preparing for and processing Tax Year-End

Tax Year-End is almost here, but don’t stress. If you haven’t already planned for it, you still have time to get everything ready.

Out of all the preparation and processes for payroll year-end, reporting to SARS on the previous tax year before 28 February 2022 is the most important thing to remember.

Unless otherwise specified by the Commissioner, all businesses must submit their annual employer reconciliation returns to the South African Revenue Services (SARS) within 60 days of the start of the Employer Tax Filing season.

Here are a few measures to take and important dates to help you prepare for and process your payroll this Tax Year-End.

Payroll year-end checklist

  1. Three-step information verification process

Before you submit your payroll data, complete this three-step information verification process:

Step 1: Verify your:

  • PAYE registration number
  • UIF reference number
  • SDL reference number
  • Company information

Step 2: Ensure your employees’ information is correct. including their:

  • Names
  • ID or passport numbers
  • Bank account numbers
  • Income tax reference numbers
  • Address and phone numbers
  • Directive numbers

Step 3: Check your remuneration data by:

  • Verifying your employees’ earnings, deductions, and employer contributions.
  • Ensuring you have processed the above using the correct IRP5 codes.
  • Using the Medical Aid billing statement to ensure that Medical Aid Dependants were reflected correctly throughout the tax year.

All staff who worked for you on the last day of the fiscal year, 28 February 2022, must get an IRP5 document. This crucial document summarises their pay and deductions for the year. You can produce, print, and send IRP5s using your payroll software and securely distribute them online.

  1. Process your payroll

Now is when you get down to the detail.

Step 1: Reconcile your PAYE, UIF, SDL and ETI values.

Step 2: Create a CSV file from your payroll and import it into [email protected] Employer.

  1. Complete your year-end

Check your processing date on your payroll software – it should be 28 February 2022. You can now complete your year-end processing and make your final submission for the 2021/22 tax year.

Important Tax Year-End dates

We’ve already mentioned some critical dates around payroll year-end, but here they are again, along with other important dates for the 2022/23 tax year.

Add them to your calendar if you haven’t already:

  • 28 February 2022 – The last day of the Tax-Year
  • 1 March 2022 – New Tax-Year starts
  • 31 May 2022 – Deadline for annual employer reconciliation submissions
  • 31 October 2022 – Deadline for mid-year employer reconciliation submissions

Payroll year-end doesn’t have to be complicated. With a bit of forethought, you can complete your processing quickly before preparing for the next tax year.

If you have trouble with tax administration or need to fill in the blanks regarding your deductibles and ensure that your business is tax compliant, go to your nearest SARS branch or use the online helpdesk service.

Your Guide to Payroll Tax Year-End 2022/23

Get best practices for preparing, processing, and planning your year-end payroll activity for 2022/2023. This guide will help you work more efficiently, giving you more time to do what you do best – run, manage, and grow your business.

Download guide

Keep your submissions simple this Tax Year-End

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