This form is designed so that employers can easily reconcile their payroll taxes (PAYE, UIF and SDL). These taxes have proved difficult to reconcile and this redesigned form is intended to simplify this process. It is important to get this right to avoid paying penalties and interest.
A significant step taken by SARS is that employers can now actively manage their payroll taxes. Businesses can now make adjustments to their account and can correct misallocated payments. Omissions and other account mistakes can be corrected (there are misallocations going back a few years) and SARS accept they will have to assist in resolving some of the queries. A case management system has been established so that taxpayers can monitor the progress SARS is making with these queries.
There are other enhancements to the Statement of Account such as grouping of like transactions and a receipt number for payments and journals which will help employers trace these payments to their bank statements.
With employers having the ability to make adjustments to payroll tax submissions comes increased accountability to manage their payroll taxes. It will also help SARS to streamline their workload
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)