The taxpayer is in the process of deregistering for PAYE. The taxpayer’s last salary paid out to the employees in the entity was March 2020. Therefore, the last payable EMP201 declaration submitted to SARS was for the period March 2020. The feedback recei
Author: The Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
In terms of paragraph 13(2)(c) of the Fourth Schedule to the Income Tax Act, an employer who ceased to be an employer, must submit the EMP501 reconciliation together with all associated IRP5 tax certificates to SARS within 14 days of the date on which the employer has so ceased. This means that the employer may submit the reconciliation documents immediately and do not need to wait for the filing season to open. It must also be noted that all certificates must be marked as final certificates, in other words the period in the certificate number must be 202102 and the indicator in easyfile must be set as final certificate.