Employers: Your Recon Deadline Is Nigh, And A New Tax Incentive For The Taking

taxdeadlineYou have until 30 May 2014 to submit your employer reconciliation for the period 1 March 2013 to 28 February 2014.  Don’t leave it to the last minute – penalties apply for late submission and you need to leave yourself time to resolve any queries or issues.  You also need to download the new version of “e@syFile Employer” – go to the SARS website at http://www.sars.gov.za/TaxTypes/PAYE/Pages/Employer-Interim-Reconciliation.aspx for the link and for a full guide on completing your form EMP501 (just bear in mind that 31 May is a Saturday, so the 30th is your deadline).

A new tax incentive for the taking

Secondly, there is a new tax incentive out there: SARS’ ETI Employment Tax Incentive (commonly referred to as the “Youth Employment Incentive” or “Youth Wage Subsidy”).  It is aimed at encouraging employers to hire “young and less experienced work seekers”. In broad terms you may, with a few exceptions, claim up to half the salary cost of any 18-29 year old employee with a South African ID. The incentive is in the form of a reduction of PAYE paid to SARS so it is critical that you claim correctly on your monthly EMP201s and reflect same on your EMP501.

Find full details of ETI and whether you qualify for it on the SARS website at http://www.sars.gov.za/TaxTypes/PAYE/Pages/Employment-Tax-Incentive.aspx.

Take advice from a registered tax practitioner in any doubt.

Ashersons Attorneys

Ashersons Attorneys

Industry news and noteworthy articles from a boutique corporate law firm in Cape Town, South Africa

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