SARS is in the process of completing audits on some employers where employment tax incentives were claimed.
Did you know?
Employers had to have claimed Employment Tax Incentive (ETI) amount that they are entitled to by March 207, that is within the six-month cycle (March 2017 – August 2017). The ETI will be zero after the six-month cycle and the employer will not receive ETI as a refund and cannot back-date the ETI claims if the six-month cycle has elapsed. This is only applicable when the employer did not claim the ETI amount they are entitled to. Please see 4.8a Release Notes for more details.
What does this mean?
If applicable, ETI changes for March 2017 to August 2017 must be made before submitting your EMP201 for August 2017 (by 7 September 2017). Therefore you cannot wait until your mid year reconciliation submission to adjust these ETI amounts.
To make sure your ETI is correct, check the following:
- Confirm that your 2017 submission was successful by logging into your efiling account and checking the EMP501 Submission status and dashboard. (Contact SARS call center for assistance, if necessary)
- Have all ETI changes, effective 1 March 2017, been implemented on your payroll?
- If ETI changes were made during your previous tax year end (on your February 2017 directory), have these changes been implemented on your live payroll?
- Did you complete your tax year end IRP5 submissions on your own? If so, are you sure that all ETI information is correct? (Information Supplied by SAGE VIP)