D-BIT Payroll. Tax Year End Guide - Preparation And Procedures For Tax Year End D-BIT SYSTEMS (Pty) Ltd D-BIT Systems (Pty) Ltd

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1 D-BIT SYSTEMS (Pty) Ltd RegNo: 87/ Boskruin Business Park Bosbok Rd Boskruin South Africa PO Box 1950 Randpark Ridge 2156 South Africa D-BIT Payroll Tax Year End Guide - Preparation And Procedures For Tax Year End D-BIT Systems (Pty) Ltd 2/23/2012, 1:16 PM

2 I Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Table of Contents Part I Procedure to Check Infomation Prior To Processing Tax Year End 4 1 Major Changes... for Tax Year End Medical Scheme... Fees Tax Credit 4 Tax Credits... 4 Taxable Benefits... - Employer Contributions 5 Updated Source... Codes 5 New Fringe... Benefit Code 5 Bursaries... 5 Deduction... Codes 6 Employee Tax... Deduction Reason Codes 6 Reactivation... of Previously De-activated Codes 6 Normal Income... Codes 6 Fringe Benefit... Codes 6 General Rules... for Submission SARS Combined... Reporting Codes 7 Redundant... SARS Reporting Codes 7 Income Tax... Employee's Submission 7 2 SARS Legislative... Tax Matters 7 Fringe Benefit... Interest Rate Changes 8 UIF Rate Changes... 8 New ufiling... 8 COIDA... 9 Remuneration... to be Included 9 Employee's... to be Included 9 Tax Rates... for 2012 Tax Year 10 SITE Company... Cars 10 Advising... Company Car Action for Employee 11 Advising %... Tax for Company Car on Employee 12 Travel Allowance Advising %... Tax for Travel Allowance on Employee 12 Reimbursive... Travel 13 Severance... Benefit Payments 13 Employer... Owned Insurance Policies 13 Subsistence... Allowance 13 ITREG Tax... Certificate Numbr file from SARS 13 Business... Logic Applied by SARS 14 Importing... SARS Tax Reference Numbers within D-BIT Payroll 14 Importing... SARS Tax Reference Numbers for More Than One Company 15 August Penalties 16 3 Download... of latest Program Update 16 Part II Procedures for Checking Tax Year End Setup 17 1 Extend Calendars Adding a... Tax Authority 18 Extending... Calendars 19 Extending... Public Holday Calendars D-BIT Systems (Pty ) Ltd

3 Contents II 2 Tax Authority... Maintenance 22 Master Tab Address Tab Employee... Masterfile 23 Personal Tab Address Tab Taxation Tab Personal... Tab 26 Taxation Tab... - Employee Tax Record 26 Payment Tab Payment... Details Screen 27 Banking Information... Screen 28 4 Check Actions... for Correct Tax and IRP5 Reporting Categories 28 Logical Integrity... Check 28 Processing... the Logical Integrity Check 29 Printing of... Action System Listing 30 Individual... Check of Actions 31 5 Check Tax... Start and End Dates for Payrolls. 32 Checking... Year End Dates 33 6 Check Employee's... Action History File 34 7 Clearance... Numbers for Pension/Provident/RA Funds 36 8 Different... Payrolls with Same Company Tax Reference Number 36 9 Manual IRP5/IT3(a)... Certificate Number Issued in Tax Year 37 Advising Manual... Certificate Number 37 Part III Foreign Currency 38 1 Creating... Foreign Tax Authority 38 2 Add Start... and End Dates to Foreign Authority 39 3 Add Foreign... Tax Authority to Employee 40 IRP5 Tab Advise YTD... Foreign Income 42 4 Running... SARS Disk 42 SARS Disk Tax Certificate Part IV Processing Tax Year End 44 1 Backup Backup from... Icon 44 Automatic... Backup 45 2 Accept Final... Payroll 45 3 Tax Year... End Procedures 47 Prior to running... Tax Year End Procedures - Import Tax Reference Numbers 47 Perform Tax... Year End Procedures 48 4 Balancing... Procedure for Tax Year End 49 Print Summary... Page of Tax Certificates 49 Tax Schedule Print SARS... IRP501 Reconciliation 51 5 Tax Year... End NOT Balancing 52 Recon Tax... Liability Schedule 52 6 Other Balancing... Reports 54 Action History... Report by Month/Link Action History Report by Month D-BIT Systems (Pty) Ltd II

4 III Tax Year End Guide - Preparation And Procedures For Tax Year End if Tax Year... End Balances 55 Validate SARS... Return 55 Generate... LIVE Disk 58 Print IRP5/IT3(a)... Certificates 59 Tax Certificate... Numbers 60 Part V Adding Manual IRP5/IT3(a) numbers after Tax Year End Procedures run 61 Part VI SARS e@asyfile Reconciliation Submission... Period 62 2 No Returns... for Half a Million Taxpayers 62 3 EMP EMP EMP Credits With... Finalisation 63 7 Completion... of EMP 501 Reconciliation Statement 63 Part VII Electronic Certificates 64 1 Issue and... Submission of Electronic Certificates 64 2 SARS Validation... Rules 65 3 Rejections Zipped Files Duplicate... Certificates 65 Manual Certificates Electronic... Certificates D-BIT Systems (Pty ) Ltd

5 Procedure to Check Infomation Prior To Processing Tax Year End 4 1 Procedure to Check Infomation Prior To Processing Tax Year End 1.1 Major Changes for Tax Year End 2012 None Medical Scheme Fees Tax Credit Employers are currently allowed to deduct contributions limited to the capped amount in respect of medical scheme contributions paid by employees under 65 years. The medical scheme contributions must be treated as follows with effect from 1 March 2012: Tax Credits The Tax Credit is applicable to all taxpayers other than those aged 65 or more. A tax 'Rebate' will be granted, instead of the 'Capped' deduction of medical aid contributions that is deducted from 'Taxable Income'. The value of tax credits is calculated from the dependants. Reason for change is stated to be that the medical cap amount is more favourable to 'High' earners. A person paying tax at the marginal rate of 40% a cap amount deduction will be worth 40% of the deduction, whereas a person paying tax at 18% the deduction will be worth only 18% of the deduction. This was regarded as 'Unfair', in that the allowance should result in the same tax saving for rich as for poor people, which is achieved by the tax credit (ie, a tax rebate). An 'under 65' employee is entitled to the tax credits in respect of medical scheme fees paid by the employee. R216 each per month for contributions made in respect of the employee and one dependant. Plus R144 per month in respect of each additional dependant. A '65 and older' employee is allowed the full medical scheme contribution paid by the employee as a deduction from remuneration, 'NO' Medical Tax Credit. The Medical Tax Credit will be deducted from the 'Tax Payable' instead of from 'Taxable Income' ie: the deduction will now happen 'After' the 'Rebates'. 'Disabled Employees' Are 'NOT' entitled to any extra medical tax credit. If an employee is employed for a part month, he is eligible for the medical tax credit value for the 'full' month. Medical Expenses on Assessment Taxpayers '65 and over' can claim all medical expenses incurred and all medical aid contributions. Taxpayers who are 'Disabled' or who have a disabled dependant may claim the total of all medical expenses and other expenses directly linked to the disability, plus so much of their medical aid contributions as exceeds four times the medical tax credit they have received. Taxpayers not falling in either of the above categories can claim the total of so much of their medical aid contributions as exceeds four times the medical tax credit they have received, plus all other medical expenses incurred. From this total is deducted 7.5% of their taxable income. Fringe Benefit 'Under 65' - Medical scheme contributions paid by the employer on behalf of an employee are included as a fringe benefit. '65 and over not retired' from the employer, will be a taxable fringe benefit. 'Retired' from the employer irrespective of age, and the employer continues to pay contributions on behalf of that retired employee, the 'No Value' fringe benefit still D-BIT Systems (Pty) Ltd

6 5 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 applies Directives and Non-Standard Employment In terms of 'hardship' directives: The medical tax credit must apply to employees tax derived by the way of the directive. Primary, secondary and tertiary rebates may not apply to employees tax derived by the way of the directive. SARS will not include the medical tax credit in their calculation of the directive percentage or fixed amount. SARS will include the primary, secondary and tertiary rebates in their calculation of the directive percentage or fixed amount. In terms of 'non-standard' employment: The medical tax credit must apply to employees tax. Primary, secondary and tertiary rebates may not apply to employees tax. SARS will not include the medical tax credit in their calculation of the fixed 25% rate. SARS will include the primary, secondary and tertiary rebates in their calculation of the fixed 25% rate. Taxable Benefits - Employer Contributions With effect from 1 March 2012, the = 'no value fringe benefit' in respect of medical scheme contributions paid by the employer on behalf of the employee who is 65 years and older and who has not retired will be repealed. This means that: The amount of contributions paid by the employer on behalf of an employee who is 65 years and older and has not retired from that employer, will be a taxable fringe benefit. However, when an employee has retired from an employer, irrespective of the age of the employee, and the employer continues to pay contributions on behalf of that retired employee, the 'no value' fringe benefit still applies Updated Source Codes The updating to the description of certain codes, introduction of new codes and re-activation of codes previously de-activated for certificate reporting purposes will become effective from 1 March New Fringe Benefit Code Non Taxable bursaries or Scholarships (EXCL) to employee's and their dependants Bursaries The following is the correct interpretation on taxing bursaries: - - If an employees remuneration is above R100,000 then the 'full' amount of the bursary is taxable i.e. (no exempt portion) irrespective of whether the value of the bursary is above or below R10,000. If the employees remuneration is a R100,000 or less: The first R10,000 of the bursary is exempt. The excess above R10,000 of the bursary is taxable D-BIT Systems (Pty ) Ltd

7 Procedure to Check Infomation Prior To Processing Tax Year End 6 From March 2012: The 'taxable' portion must be reported under SARS code The 'exempt' portion must be reported under SARS code Deduction Codes Employer's medical scheme contributions in respect of employees not included in code From 1 March 2012 the contributions paid by the employer on behalf of an employee 65 and older and who has not retired, should also be reflected under this code.* Employer's medical aid contributions in respect of an employee who qualifies for the 'no value' provisions in the 7th Schedule. This is the employer's portion of the medical scheme contribution made on behalf of an employee who is a pensioner (a person who by reason of superannuation, ill-health or other infirmity retired from the employ of such employer). the dependants of a pensioner after the death of the pensioner, (if such pensioner retired from the employ of such employer by reason of superannuation, ill-health or other infirmity). the dependants of a deceased employee after such employee's death, if such deceased employee was in the employ of the employer on the date of death Employee Tax Deduction Reason Codes Medical Scheme Fees Tax Credit taken into account by employer for PAYE purposes Reactivation of Previously De-activated Codes This section details the codes to be reactivated from 1 March These codes are therefore valid for the 1999 to 2009 and from the 2013 years of assessment. The Foreign Service income codes (codes in brackets) are valid from the 2002 to 2009 and from the 2013 years of assessment Normal Income Codes Pension (PAYE) Any pension paid on a regular basis as well as backdated pension payment (for current tax year) Annuity from RAF (PAYE an annuity paid by a RAF to any person Fringe Benefit Codes Accommodation (PAYE) Free or cheap accommodation or holiday accommodation Free or cheap services Employee's Debt. Payment of an employee's debt or release of an employee from an obligation to pay a debt Taxable Bursaries or Scholarships (PAYE). Bursaries and scholarships to employees and their dependants taxable portion only D-BIT Systems (Pty) Ltd

8 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 General Rules for Submission 2012 Separate CSV file for each transaction year. Employer demographic header record. Employee demographic and financial records. Employer totals and trailer record. Not more than one file per employer. Employer PAYE, UIF and SDL Ref. No. to cross reference with the EMP201. Employer trading/other name. Employer Trade Classification, main sector for business VAT/EMP403. Employer physical address - in specified format. Person responsible for the reconciliation. New format tax certificates 2 A4 pages, page1 demographic, page 2 financial. Tax certificates now have both foreign and local income on one certificate SARS Combined Reporting Codes Code Code Code Code Code Code Code Code (Income PAYE) 3601, 3603, (Income EXCL) 3602, 3604, 3609, (Other Allowances PAYE) 3713, 3706, 3710, 3711, (Other Allowances EXCL) 3714, 3705, 3709, (General Fringe Benefits PAYE 3801,2,3, (Pension/RAF PAYE) 3902, 3920, (Ret. Lump Sum Benefits PAYE) 3915, 3903, (Provident) 4003, Redundant SARS Reporting Codes Code Code Code Code Code Code Code 3699 Gross Remuneration Medical Contribution paid by employee Employers Pension Fund Contributions Employers Provident Fund Contributions Tax Deducted Medical Services Costs Medical Capped amount. Code 4487 No Value Benefits IRO Medical Services By ER Income Tax Employee's Submission Note: The submission of tax returns annually will remain dependant on the income earned and not on registration. Currently employees who earn less than R a year from one employer and have no extra income and deductions don't need to submit a return. 1.2 SARS Legislative Tax Matters D-BIT Systems (Pty ) Ltd

9 Procedure to Check Infomation Prior To Processing Tax Year End Fringe Benefit Interest Rate Changes Fringe Benefit Interest Rate Changes This is for Low/Interst Free Loans ie: if no interst or a lower interest rate is charged than that specified, the difference between the interest rates charges and the interest calculated at the official rate constitutes a taxable fringe benefit. The interest rate for low interest loans is 6.5% from 1 March 2012 (repo rate plus 1%) UIF Rate Changes No changes as of yet New ufiling - KEY FEATURES. Accesible 24/7. Easy to use. Free of charge. Bulk uploading and declaration submission. Legislative Compliance. Accurate UIF contributions and reconciliations. Ready to use reports. FUNCTIONALITY Save costs. Reduce complexity. Increase transparency and promptness of service. Improve efficiency of staff. Maintain and track all records. Offers highly secure solution, inaccessible from unauthorised users. Speedy claim processing. Tracking of all claims through the issuing of unique reference numbers. For further information please log on to D-BIT Systems (Pty) Ltd 8

10 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 COIDA The COIDA new ceiling limits effective for Tax Year 2011/2012 starting from 1st March Limit from 1st March 2011 = 277, This is a statutory change has been updated by D-Bit Sytems Remuneration to be Included When calculating the remuneration value for COID reporting you need to note the following : Remuneration is deemed as earnings of all types (before deductions) due to an employee, either made or owing, in money terms or in kind that has arisen out of his/her employment. It includes : - Salaries and/or Wages - Cost of Living Allowance - Bonuses (incentive or otherwise) - Overtime payments th (regular) - A guaranteed 13 cheque - Housing Allowance - Commissions (only if given to an employee who also has a basic salary, and not agents or contractors) - Cash value of meals and accommodation provided to an employee - Any other payment due to an employee in accordance with the employee's contract of service Don't include the following : - Subsistence Allowance (reimbursive in nature) - Travelling Allowance (reimbursive in nature) - Occasional Overtime - Ex Gratia Payments - Occasional Payments - Company Contributions to Medical Aid, Pension or Provident funds - Once-off (non-recurring) payments made to an employee which falls outside the scope of his service contract or for tasks which fall outside the scope of the employees normal duties Employee's to be Included - A person under contract of service with the company or an apprenticeship or learnership scheme or who is paid in accordance to the time worked or is paid in cash or in kind for services rendered. - Casual employees. - Director or member of a corporate body (who has entered into a service contract). - A person provided by a labour broker for which the labour broker is remunerated D-BIT Systems (Pty ) Ltd

11 Procedure to Check Infomation Prior To Processing Tax Year End Tax Rates for 2012 Tax Year SITE 10 Special provisions were introduced in 2010 to phase out the Standard Income Tax for Employees (SITE) over a three year period. No SITE calculations from 1st March Company Cars The determined value of a company car will now be the cost of the car, excluding only finance and interest charges. VAT and any maintenance plan purchased will be included in the original cost figure. The percentage to calculate the fringe benefit will be as follows: 3,5% if the vehicle was not subject to a maintenance plan at the time the employer acquired the vehicle. 3.25% if the vehicle was the subject of a maintenance plan at the time the employer acquired the vehicle. The fringe benefit value must be reduced by any payment made to the employer by the D-BIT Systems (Pty) Ltd

12 11 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 employee, other than cost of license, insurance, maintenance or fuel, these are taken into account on assessment. Only 80% of the fringe benefit is subject to tax. However if the company is satisfied that more than 80% of the use of the vehicle is business, then only 20% of the fringe benefit value be subject to employee's tax. The employee in such a case MUST keep a log book Advising Company Car Action for Employee Go to Employee Masterfile->Payslip Tab->Double click on the Company Car action. Cost+Maint (excl Vat) - enter the full cost of the vehicle + any maintenance plan, this value must EXCLUDE VAT D-BIT Systems (Pty ) Ltd

13 Procedure to Check Infomation Prior To Processing Tax Year End 12 Maintenance plan included in cost? - tick if the the cost include the maintenance plan Advising % Tax for Company Car on Employee Go to ->Employee Masterfile->Taxation Tab->Double click into the 2012 tax record->master Tab. Co.Car / Travel tax % - use the drop down to select % to be used Travel Allowance Fringe benefit taxed at 80%. Sales reps taxed 20% as business mileage is 80%, log book essential. Travel Allowance in addition to a Company Car, is NOT considered a Travel Allowance and must be taxed t 100%. Ie: No Travel Allowance allowed with a company car Advising % Tax for Travel Allowance on Employee Go to ->Employee Masterfile->Taxation Tab->Double click into the 2012 tax record->master Tab. Co.Car / Travel tax % - use the drop down to select % to be used D-BIT Systems (Pty) Ltd

14 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Reimbursive Travel The table used to calculate the rate per kilometre when determining a travel allowance and the rate per kilometre at which kilometers may be reimbursed has changed. These changes will result in higher rate per kilometre value for motor cars to the advantage of individuals using their private vehicles for business purposes. Also applies to individuals covering all private fuel expenses when making use of a company car. Employers are advised to recalculate the value of the travel allowance based on the estimated kilometers for the new tax year and using the new kilometre rates. The determined rate per kilometre used for reimbursement of business kilometers should not be greater than R3.05 (was R2.92) or the rate as derived from the table Severance Benefit Payments The R30,000 exemption that previously applied to retrenchment gratuity lump sums has been st repealed from 1 March Severance Benefit Payments will now be taxable in terms of the retirement fund lump sums benefits tax rates. An employer is required to apply for a tax directive if this type of remuneration is paid to an employee. The exemption shall be determined by SARS with the processing of the tax directive application. The gross amount of the severance benefit must be reflected under the code 3901 on the IRP5/IT3(a) tax certificate. The employees tax withheld in terms of the directive must reflect under code Employer Owned Insurance Policies Changes have been made to the taxation of employer owned insurance policies. This may result in the taxation of these company contributions on the payroll such as: Deferred Compensations Schemes. Income Replacement Policies. Please refer to letters sent out by your insurance firm, clarifying the changes related to your specific contributions Subsistence Allowance R88 per day for incidental expenses. R286 per day for meals and incidentals ITREG Tax Certificate Numbr file from SARS SARS has taken all the interim (bi-annual) declarations received up until August 2011 and run the files through a set of validations to confirm and validate information. Correct or automatically register all individuals not registered for income tax The tax reference numbers can be obtained for those employees that SARS could successfully register from the outcome of the interim August 2011 submission. The bulk ITREG requires that the same e@syfile Employer Software database is maintained that was used for the reconciliation submission The Employer application can be imported into the payroll to populate the correct income tax reference numbers. Accessing Income Tax registration numbers on e@syfile" Employer To access the Income Tax reference numbers, complete the following steps: D-BIT Systems (Pty ) Ltd

15 Procedure to Check Infomation Prior To Processing Tax Year End 14 " Step 1: Ensure you are using the software with your database containing your most recent reconciliation submission when performing the synchronisation " Step 2: Launch Employer, enter your Employer login, and select "Synchronise Application" " Step 3: Select synchronise "All", if you have synchronised "All" previously you can also choose to synchronise only registration results by selecting "Taxpayer Income Tax Registrations" " Step 4: Enter your efiling login details " Step 5: The software will synchronise and download the bulk ITREG information that can be matched to the submitted certificates " Step 6: The registration details can be viewed in the inbox, or alternatively exported from the software by selecting "Import/Export Payroll File," and then selecting "Export Payroll File" Business Logic Applied by SARS Assuming that the data necessary to be able to register an employee for income tax is valid and present on the tax certificate, the SARS ITREG file to the employer will be populated with records according to the following business logic: i. If the IT# was correct on the tax certificate, then no record will be supplied ii. If the IT# was incorrect on the tax certificate, then the correct IT# will be supplied iii. If the IT# was not on the tax certificate but the employee is registered according to the SARS records, then the IT# will be supplied iv. If the IT# was not on the tax certificate and employee is not registered, then the IT# will be generated and supplied Importing SARS Tax Reference Numbers within D-BIT Payroll Select 'Processing'. Select 'Tax Year End'. Select 'Retrieve SARS IT Reg File'. Step1: Select the SARS IT Reg File and import it - browse to the directory to where you have save the downloaded SARS ITReg.csv file. Step2: Select 1 or more companies to match against - use down arrow to select company. Click 'Import' tab to display the following screen D-BIT Systems (Pty) Ltd

16 15 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Click 'Match' tab to display the matched employee's. NB: Information displayed in 'Red' is where the these values do not match with the payroll. Step3: Commit the matched tax reference numbers to the database and create a non-matched IT Reg file for further processing - if you are satisfied that the information matches then continue with this step and click on the 'Apply' tab. Click 'Yes' to update the database Importing SARS Tax Reference Numbers for More Than One Company Select 'File' D-BIT Systems (Pty ) Ltd

17 Procedure to Check Infomation Prior To Processing Tax Year End 16 Select 'Tools'. Select 'Open Application Folder'. Double click 'NPSARS3.EXE'. Step1: Select the SARS IT Reg File and import it - browse to the directory to where you have save the downloaded SARS ITReg.csv file. Step2: Select 1 or more companies to match against - use down arrow to select a company. Click 'Import' tab to display data. Once you have completed one company and run through the process as for importing a company,you then select the next company August 2011 Penalties SARS have been threatening for a long time to raise penalties for tax certificate transgressions. The penalties for 'late' submissions and for 'incompleteness' of information on the August 2011 tax certificates, will probably be issued in batches within a few weeks. 1.3 Download of latest Program Update Download latest programs from the Web Programs should be downloaded immediately, If there are further updates we will be updating notices in this regard on our website. Open up D-BIT Payroll->Help->D-BIT Web Update-.Follow Wizard. Select 'D-BIT Web Update D-BIT Systems (Pty) Ltd

18 17 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Click on 'OK'. Click 'Next' and follow the wizard. 2 Procedures for Checking Tax Year End Setup 2.1 Extend Calendars NB: It is imperative that the Calendars are extended for the new tax year prior to accepting the final run for January (Especially Monthly Payrolls). The reason being that as the payroll rolls over to the next period, the period being accepted moves to 'Last period Run', the 'Next Period End' moves to 'Period end date' and the 'Next period End' moves the next period from the calendar into this field. January Payroll Prior to Accept eg: As at January - Last Period End = 2011/12/31-1 Period end date = 2012/01/31-1 Next period End = 2012/02/29-1 When January payroll After Accept the period dates will be as follows: eg: As at February - Last Period End = 2012/01/31-1 Period end date = 2012/02/29-1 Next Period End = 2012/03/31-1 NB: The above is a precautionary measure, as the system will ask if you wish to extend calendars on the accept of the final January Payroll. Run Schedules D-BIT Systems (Pty ) Ltd

19 Procedures for Checking Tax Year End Setup 18 Before calendars can be extended, the relevant 'Tax Authorities' necessary for the extension of calendars MUST be advised. We advise you to add 'Tax Authorities' for the next 5 years, and then the calendars will automatically be extended for 5 years Adding a Tax Authority Check that the Tax Authority exists before extending the calendar. Select->Configuration->Tax Authorities ->Click on the 'Magnifying Glass' next to the Tax Authority to list all tax authorities Select 'Configuration'. Select 'Tax Authorities'. Click on 'Magnifying Glass' to get the list of existing tax authorities. TO ADD A TAX AUTHORITY Highlight the Tax Authority as shown below. Press the 'Insert' key and change the year to the next tax year, and press 'Enter'. the following screen will be displayed. Click 'Yes' and the following screen will be displayed. Click 'No'. Click on 'Save'. Change the 'Tax year start date' and the 'Tax year end date' to the dates specified by SARS and any other information that needs to be updated D-BIT Systems (Pty) Ltd

20 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Extending Calendars Select->Maintenance->Payroll Maintenance ->Calendar Maintenance ->Select Run Schedule ie: Monthly/Weekly ->Use the 'Plus Sign' in top right hand corner to see how far the calendar extends to. Select 'Maintenance'. Select 'Payroll Maintenance'. Select 'Calendar Maintenance' and the following screen will be displayed. Click on the 'Plus' sign to the left of the 'Period Run Schedule' to list the run schedules. Click on the schedule you wish to extend, and the schedule will be displayed on the right. Click on the 'Plus' sign to move to next page of the calendar, and check when the last period falls on the calendar. TO EXTEND CALENDAR Click on the right 'Green Arrow' above the list of run schedules. The following screen will be displayed. The tax authorities that need to be applied to the calendar will appear in the bottom of the screen. Click 'OK' and the calendar will be extended. Click 'Save'. MONTH ENDS - Weekly/Fortnightly Payrolls Note: After advancing the Calendar forward, the month ends must be checked that they fall in the correct period D-BIT Systems (Pty ) Ltd

21 Procedures for Checking Tax Year End Setup 20 If these need to be changed, double click on the incorrect month end period, and the following screen will be displayed. To move the 'Month End' forward click on 'Shift Month End>>'. To move the 'Month End' back a period click on '<<Shift Month End'. Click 'OK'. NB: The 'Run of period' and 'Runs in period' will automatically be changed Extending Public Holday Calendars Select->Maintenance->Payroll Maintenance ->Calendar Maintenance ->Select Run Schedule ie: Monthly/Weekly ->Use the 'Plus Sign' in top right hand corner to see how far the calendar extends to. Select 'Maintenance'. Select 'Payroll Maintenance'. Select 'Calendar Maintenance' The following screen will be displayed. Click on the 'Plus' sign to the left of the 'Public Holidays' to list the run schedules D-BIT Systems (Pty) Ltd

22 21 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Click on the schedule you wish to extend, and the schedule will be displayed on the right. BEFORE EXTENDING Check each public holiday and 'Tick' on if this holiday is recurring ie: the holiday occurs in the following year. If the holiday is ticked on as 'Recurring' these holidays will be carried forward into the new year when the schedule is extended. EXTEND PUBLIC HOLIDAY SCHEDULE Open the the 'New' ie: the following years schedule which should be blank. Click on the right 'Green Arrow' a message will be displayed shown below. Click 'Yes' D-BIT Systems (Pty ) Ltd

23 Procedures for Checking Tax Year End Setup 22 Click on 'Save'. 2.2 Tax Authority Maintenance Select 'Configuration' Select 'Tax Authorities' Master Tab The 'Master' tab must be changed to the 'Postal' address of your Employer/Company. PAYE,SDL and UIF Reference numbers are MANDATORY and must also be completed on the 'Master' tab. Employer's name - MANDATORY Tax reference number - MANDATORY Address - must hold the Employer/Company 'Postal' address. UIF reference number - MANDATORY SDL reference number - MANDATORY D-BIT Systems (Pty) Ltd

24 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Address Tab Unit No: - OPTIONAL can be left blank. Complex Name: - OPTIONAL can be left blank. Street No: - OPTIONAL can be left blank. Street Name: - MANDATORY cannot be blank. Suburb/District: - CONDITIONAL ie: either the Suburb/District OR City/Town must be completed. City/Town: - CONDITIONAL ie: either the Suburb/District OR City/Town must be completed. Postal Code: - MANDATORY cannot be blank. 2.3 Employee Masterfile The following all need to be checked/verified: Identity number/passport number Country of issue (if passport number entered) Address Tax Reference number D-BIT Systems (Pty ) Ltd

25 Procedures for Checking Tax Year End Setup Personal Tab Identity number - MANDATORY with a 13 digit valid bar-coded RSA Number (old ID numbers must be entered under'passport' number. Passport number - MANDATORY if NO identity number entered. Country of Issue - MANDATORY if 'Passport' number entered Address Tab D-BIT Systems (Pty) Ltd

26 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Taxation Tab Unit No: - OPTIONAL can be left blank. Complex Name: - OPTIONAL can be left blank. Street No: - OPTIONAL can be left blank. Street Name: - MANDATORY cannot be blank. Suburb/District: - CONDITIONAL ie: either the Suburb/District OR City/Town must be completed. City/Town: - CONDITIONAL ie: either the Suburb/District OR City/Town must be completed. Postal Code: - MANDATORY cannot be blank D-BIT Systems (Pty ) Ltd

27 Procedures for Checking Tax Year End Setup Personal Tab Address - to contain the employee's 'Postal' address. address - both fileds have been extended to 62 characters Taxation Tab - Employee Tax Record The 'Tax Reference Number' is now mandatory and needs to be advised on the employee's tax record. NB: The number must be a valid 10 digit number if not the follow message will be displayed to screen D-BIT Systems (Pty) Ltd

28 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Payment Tab 2 screens have been changed. Payment Tab screen - filed extended to 62 characters. Banking Detail screen - relationship field added Payment Details Screen to - extended to 62 characters D-BIT Systems (Pty ) Ltd

29 Procedures for Checking Tax Year End Setup Banking Information Screen Banking details are MANDATORY if an employee is paid by electronic transfer. Bank Code - please check that the bank code is 'Valid' ie: contains 6 digits and the description of the bank and branch display correctly to the right of the code. Payee name - OPTIONAL, enter the account holders name. Relationship - MANDATORY (from 2011) if employee's salary paid into a bank account. 2.4 Check Actions for Correct Tax and IRP5 Reporting Categories The SARS Reporting codes are available on the SARS Website document number AS-PAYE-05 ALL actions should be checked at the beginning of each Tax Year that they have been specified to go to the correct 'Tax' and 'IRP5' categories. Running the 'Logical Integrity Check' will pick up if there are any errors in your action setup. NB: If this is done at Tax Year end, or some action/s are found to be incorrect, then NO Manual Adjustments would have to be made on the Employee's Tax Record as when the action is corrected the employee's tax record will be retrospectively corrected at the same time. NB: Prior years WILL NOT be corrected Logical Integrity Check This is COMPULSORY!!! The logical integrity also checks the setting of the 'subject to UIF and SDL' action switches. The integrity check will IDENTIFY illogical 'Tax Reporting' vs 'Tax Category' setup errors. If found, a log will be written with recommended actions D-BIT Systems (Pty) Ltd

30 29 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 NB: It is imperative that the Integrity Check is run on ALL payrolls to ensure that there are no errors in regard to actions that have not been switched on as 'Subject to UIF' on the 'Rules' tab of the action. Also the logical checking of 'Tax Categories' to 'Reporting Categories MUST be checked if any errors occur on the Log. If there are errors that you need assitance with, please log your request for assistance on the D-BIT HELP DESK Processing the Logical Integrity Check Open D-BIT Payroll->Go File->Select Integrity Check->Select Payroll->Tick on 'Check logical Integrity'->Click 'Next->Click 'Finish'->System will start processing->click 'Error Log' to get listing of errors. Highlight the company. Click 'Next'. Click 'Finish' D-BIT Systems (Pty ) Ltd

31 Procedures for Checking Tax Year End Setup If there are any errors reported. Click on 'Error Log' Printing of Action System Listing This report lists out whether the action is applicable for COIDA, UIF, Retirement Funding Income, it also shows which Tax Category and IRP5 Category is being used. NB: RSC Levy no longer applicable from 1st July 2006 Select->Reports->Configuration->System Action Listing Select 'Reports'. Select 'Configuration Reports'. Select 'System Action Listing' and the following screen will be displayed D-BIT Systems (Pty) Ltd 30

32 31 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Click on Print and the report will be displayed. i) Check the actions Tax and IRP5 categories. ii) Check actions in the following tax categories are ticked on for: SDL (Skills Development Levy) + Taxable Income NB: Please refer to the following Website for further information regarding SDL and remuneration included for SDL. UIF (Unemployment Insurance Fund) NB: Please refer to the following Website for further information regarding UIF and remuneration included for UIF Individual Check of Actions Select->Maintenance->Payroll Maintenance ->Action Maintenance -> Use Finder and double click on action -> Click on Rule Tab -> check tax category and IRP5 category D-BIT Systems (Pty ) Ltd

33 Procedures for Checking Tax Year End Setup 32 Select 'Payroll Maintenance'. Select 'Action Maintenance'. Select 'Rules' tab Check the columns shown below on the relevant actions. IRP5 Category Tax category Retirement Funding Income Subject to COIDA (WCA) Subject to UIF 2.5 Check Tax Start and End Dates for Payrolls. NB: In the case of Weekly/Fortnightly Payrolls it is imperative that the Start and End Dates of the Tax Year are correct prior to running the final February run. To check follow the next procedure D-BIT Systems (Pty) Ltd

34 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Checking Year End Dates Go to Maintenance->Payroll Maintenance->Payroll Maintenance->Select Schedule Name>'Taxation' Tab->Double click on the 'New' Tax Authority created by the system->check the Tax year Start and End Dates that they comply with your tax year. Select 'Maintenance'. Select 'Payroll Maintenance'. Select 'Payroll Maintenance', the following screen will be displayed. Select 'Payroll'. Move cursor over the 'Pay Schedule' to get 'Magnifying' glass. Click and the following screen will be displayed. Double click on 'New' Tax Authority and the 'Tax Authority Dates' screen will be displayed. Check 'Tax Start' and 'End Dates', and change if necessary. NB: NEVER change the start and end dates on the 'Tax Authority'. The Tax Authority must always be the start and end dates as specified by SARS D-BIT Systems (Pty ) Ltd

35 Procedures for Checking Tax Year End Setup Check Employee's Action History File Behind each action held on the employee's masterfile is the history per period for the action. This history is vital when running Tax Year End ie: the history is used for the calculation of COIDA, Printing of some of the year end reports. If this file is blank behind the action, some processes will be inaccurate. Follow procedure below to check for the history file: Go to->maintenance->employee Masterfile->Payslip Tab->Double click on any action->go To Action Details->Use down Arrow and select History Information. Select 'Maintenance'. Select 'Employee Masterfile'. Double click on any action, the following screen will be displayed. Go to 'Action Details' use down arrow and select 'History Information' D-BIT Systems (Pty) Ltd

36 35 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 If the screen is blank as shown above then an 'Integrity Check' can be be run to bring the history file in. Follow procedures below. Close Company->Go To File->Check Integrity->Select Company->Click on Re-Build Database and Check Logical Integrity->Next->Select NPHEA History for NPEA Database->Click Finish 'Close Company'. Click on 'Check Integrity'. Select Company and click 'Next'. Select 'NPHEA0 History for NPHEA00 Database'. Click 'Finish'. Now go back into the payroll and follow same procedure to check history on employee action. The file should now be there D-BIT Systems (Pty ) Ltd

37 Procedures for Checking Tax Year End Setup 36 NB: If the 'History' file is empty/not for the entire 'Tax Year', this would then mean that the file is either NOT in the data directory, or the file has been deleted/moved else where. 2.7 Clearance Numbers for Pension/Provident/RA Funds NB: No longer applicable from the 2010 tax year. 2.8 Different Payrolls with Same Company Tax Reference Number In the case of your company running 2 payrolls ie: Wages and Salaries and both payrolls use the same Tax reference number, meaning that when IRP5/IT3(a)'s are generated they must appear ALL on one Electronic file to SARS. In order to achieve the above follow the procedures below. If this is the case then the First Payroll ie Salaries IRP5/IT3(a) numbers must start with say 01 and the Wages Payroll must start with 02. To advise this follow these procedures. Select->Maintenance->Payroll Maintenance->Payroll Maintenance->Select Payroll ie Salaries>Click on Shifts Tab->Enter 01 in IRP5/IT3(a) range->save. Then select Wages Payroll and enter 02. Select 'Maintenance'. Select 'Payroll Maintenance'. Select 'Payroll Maintenance' and select the 'Shifts' tab, the following screen will be displayed. Use magnifying glass to the right of the word 'Payroll' and select the relevantpayroll. Change IRP5/IT3(a) range D-BIT Systems (Pty) Ltd

38 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Manual IRP5/IT3(a) Certificate Number Issued in Tax Year If any employee's were issued with either a manual IRP5 or IT3(a) during the course of the tax year, these numbers should be advised onto the employee's tax record. NB: These manual certificate numbers MUST be entered PRIOR to running Tax Year End Procedures, so that the system does not generate an Auto IRP5/IT3(a) number for those employee's. Follow the procedures below to insert these numbers Advising Manual Certificate Number Go to->maintenance->employee Masterfile->Click on Taxation Tab->Double click on Current Years Tax record->click on IRP5 Tab->Tick in 'Manual IRP5/IT3a issued'->the manual cert. no will now be opened to enter the certificate number issued->click on Save. Select 'Maintenance'. Select 'Employee Masterfile'. Click on the 'Taxation' Tab and the following screen will be displayed. Double click on the tax record for which 'Tax Year End' (ie: Current) is to be run. Click on the 'IRP5' tab and the following screen will be displayed D-BIT Systems (Pty ) Ltd

39 Procedures for Checking Tax Year End Setup 38 Tick the 'Manual IRP5/IT3(a) issued' ON, and then enter the manual certificate number issued for the employee. As you can see in the example above Tax Year End Procedures had been run prior to advising the manual certificate number. NB: If this occurs where you forget to advise the manual certificate numbers prior to running Tax Year End Procedures, refer to Section 'Manual IRP5/IT3(a) to insert after Processing Tax Year End Procedures' in 'Help Guide to Resolve Incorrect Values and Missing Information'. 3 Foreign Currency A foreign tax authority needs to be created for the current tax year. 3.1 Creating Foreign Tax Authority Select 'Configuration'. Select 'Tax Authorities'. Double click on the current tax authority D-BIT Systems (Pty) Ltd

40 39 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Press the 'Insert' key and point your cursor in front of the 'A' and insert an 'F', and 'Enter'. the following screen will be displayed. Click 'Yes' and the following screen will be displayed. Click 'No'. Click on 'Save'. Tax Authority should be as above. 3.2 Add Start and End Dates to Foreign Authority D-BIT Systems (Pty ) Ltd

41 Foreign Currency Add Foreign Tax Authority to Employee Once the foreign tax authority has been created you need to add it to the employee/s tax record D-BIT Systems (Pty) Ltd

42 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 IRP5 Tab D-BIT Systems (Pty ) Ltd

43 Foreign Currency Advise YTD Foreign Income 3.4 Running SARS Disk D-BIT Systems (Pty) Ltd 42

44 43 Tax Year End Guide - Preparation And Procedures For Tax Year End SARS Disk Tax Certificate D-BIT Systems (Pty ) Ltd

45 Processing Tax Year End 4 Processing Tax Year End 4.1 Backup 44 NB: Please ensure that there is a Backup of the February payroll PRIOR to accepting. Also when ALL checking has been done under Section 'Check List Prior to Running Tax year End' and you are happy, then you can accept February. There are 2 Backup facilities available. 1. A backup that can be done from the Backup Icon. 2. An Automatic backup which is automatically done on accept of a payroll Backup from Icon Follow Backup procedures below: Go to->backup->select Backup Folder, Advise meaningful description of backup->click on Backup Now tab->system will process backup and when finished a message will come up saying Company's data successfully backed up!->click OK. Select 'Backup'. Select 'Backup Data'. Enter Backup Folder ie: where you wish the backup to be written to, and enter a meaningful description for the backup. Click on 'Backup Now' tab. System will process backup and a message will be displayed as shown below D-BIT Systems (Pty) Ltd

46 45 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Click 'OK'. Go back into the Backup Icon and check that the Backup appears in Existing Backups Automatic Backup Follow procedure below to setup the automatic backup. Go to->configuration->click on Company Profile->Company Profile screen will be displayed->click on Run Time->Tick ON Automatically backup before accept->click on Apply. Select 'Configuration'. Select 'Company Profile'. Click on 'Run Time' Tab. Tick ON Automatically backup before accept. Click on 'Apply' tab. Once you have switched the automatic backup on, whenever you accept your payroll a backup will be done and written to a Sub directory in the Data directory. 4.2 Accept Final Payroll Once you are happy with the final February run (for weekly/fortnightly payrolls this would be the final week/fortnight for February in order to finalise February Month End.) this run MUST be accepted in order to retrieve all values from the tax year start until the final run of February D-BIT Systems (Pty ) Ltd

47 Processing Tax Year End 46 Accept February Payroll Go to Processing->Payroll Processing->Next->Select Payroll to Accept->Next->Double Click on Accept Payroll->Type in Capital Letters 'YES'->Click OK->System will then process the accept>click OK. Select 'Processing'. Select 'Payroll Processing'. The following screen will be displayed. Click on 'Next'. Select 'Payroll' to accept. Click 'Next' D-BIT Systems (Pty) Ltd

48 47 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Double click on 'Accept Payroll'. Type in capital letters 'YES' and click 'OK'. The system will start processing the acceptance of the payroll wait until the screen displayed comes up in the right hand corner of your screen. 4.3 Tax Year End Procedures Once you have accepted the final run for February you may then continue with the next periods payroll input. On accept the system generates the New Tax Authority for the new tax year, this is added to 'Live' employee's. The previous years tax authority is closed with a record status 'Year End Complete', which means that the first run of the tax year can be run and will have no effect on the previous years tax records Prior to running Tax Year End Procedures - Import Tax Reference Numbers NB: Prior to running any tax year end procedures please ensure that you have imported SARS ITREG file with the registered employee's tax reference numbers D-BIT Systems (Pty ) Ltd

49 Processing Tax Year End Perform Tax Year End Procedures NB: Tax Year End Procedures have to be run individually for each payroll within the company ie: if 3 companies then this procedure must be run 3 times. Go to Processing->Tax Year End->Perform Tax Year End Procedure->Next->Enter Tax Authority to be run ie: current tax year and payroll->tick on (if first time procedure is being run) Re-number IRP5/IT3(a) certificates and scan for action clearance numbers->finish. An information screen will be displayed to show that the system is processing, when finished a message will be displayed saying 'Process Completed Normally'. The next step now should be to validate the Electronic Return->Click Ok. This will then return you to the Tax Year End screen. Select 'Processing'. Select 'Tax Year End'. Select 'Tax Year End Procedures'. The following screen will be displayed. Click 'Next' and the following screen will be displayed. Tax Authority - The 'Current' tax year will automatically be displayed. Payroll - select the payroll that you are running the year end procedures for. Submission period - Select 'Tax Year End'. 'Re-number IRP5/IT3(a) certificates' a will be automatically on D-BIT Systems (Pty) Ltd

50 49 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Click 'Finish'. The following screen will be displayed. Click 'OK' and the following screen will be displayed. Click 'OK' and the following screen will be displayed. Click 'OK'. 4.4 Balancing Procedure for Tax Year End Print Summary Page of Tax Certificates Print the summary/last page from IRP5/IT3(a) certificates. Select 'Processing'. Select 'Tax Year End' D-BIT Systems (Pty ) Ltd

51 Processing Tax Year End Select 'Tax Certificates'. Select 'Tax Year' for which you want IRP5/IT3(a) certificates. 'Print Summary Page? - if ticked 'ON' the summary page will print. Certificates will be displayed on screen. Click 'Print' and select only last page D-BIT Systems (Pty) Ltd 50

52 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Tax Schedule This report contains the YTD Tax deducted and the YTD Gross Pay values. These value are extracted off the employee's masterfile 'Taxation' tab under YTD Values. Go To Processing->Tax year End->Tax Schedule->Enter Selection Criteria of Current Tax Authority if any other selection needed ie: If you wish to print for one payroll, select that payroll>print. Select 'Processing'. Select 'Tax Year End'. Select 'Tax Schedule'. The following screen will be displayed. Enter current Tax Authority and any other selection required. Click on 'Print' and the report will now be displayed on screen Print SARS IRP501 Reconciliation D-Bit SARS IRP501 Reconciliation Report This report lists out the value of tax per month that was deducted. The values on the report have been extracted from the employee's 'Tax History File'. This information is required on the 'IRP501' return for SARS when submitting electronic file. Go to 'Processing'->Tax Year End->SARS IRP501Reconciliation->Enter Selection Criteria, Current Tax Year and Run Id must be selected->print The following screen will be displayed D-BIT Systems (Pty ) Ltd

53 Processing Tax Year End 52 Enter the current tax year and the Start and End RunId's, and any other selection required then click on 'Print'. The report will now be displayed on screen. 4.5 Tax Year End NOT Balancing Recon Tax Liability Schedule If tax at year end not balancing: Print Recon Tax Liability Schedule This utility/report is run when the Tax deducted YTD on the 'Tax Schedule' and 'Tax Liability Schedule' do NOT match. The utility will print out the affected employee's and display in RED in which period the YTD tax does not match. Go to 'Processing->Tax Year End->Recon Tax Liability Schedule->Enter Selection Criteria, Current Tax Year must be selected->print D-BIT Systems (Pty) Ltd

54 53 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Select the current tax authority. Next to 'Tax Liability Exception' tick ON 'Print' and 'Summary'. Click 'Print' the utility will process and the report will the following screen will be displayed. If you want the graphs to be displayed on the report tick ON 'Yes' utility will process and the report will then be displayed D-BIT Systems (Pty ) Ltd

55 Processing Tax Year End 4.6 Other Balancing Reports Action History Report by Month/Link Action History Report by Month 54 This report lists out values from the 'Main' action (ie: if there is a link action to the main action, these link values can be found on 'Link Action History Report by Month' by month, split into Earnings, Deductions, Employer Contributions, Fringe benefit and Dummy. These values are extracted off the employee's 'Action History' file which holds ALL values paid/deducted to the employee per pay period. For the purposes of Tax Year End this is a very good report to use to check employee's values paid and deducted in the tax year,and to balance to other Tax Year End reports. NB: If you have not updated your programs the latest report will not be available. Go to 'Reports->History Reports->Action History Report By Month->RunID must be selected as crietria->print If any other selection needed ie: If you wish to print for one payroll, select that payroll->print. Enter the 'Start' and 'End' RunId's and any other selection required and then click on 'Print'. The report will now be displayed on screen. Link Action History Report by Month This report lists out link values from the 'Link' action (ie: if a Link action has been advised on a Main action) by month, split into, Earnings, deductions, Employer Contributions, Fringe Benefits and Dummy. These values are extracted off the employee's 'Action History' file which holds ALL values paid/deducted to the employee per pay period. Go to 'Reports->History Reports->Link Action History Report By Month->RunID must be selected as crietria->print D-BIT Systems (Pty) Ltd

56 55 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 If any other selection needed ie: If you wish to print for one payroll, select that payroll->print. 4.7 if Tax Year End Balances If the tax Certificates and Tax Schedule balance to the 501/Tax Liability Schedule then proceed to Generate a 'TEST' disk for SARS Validate SARS Return Go to Processing->Tax Year End->Double click on 'SARS Return'->The SARS Electronic screen will now be displayed->enter Tax year, income Type = 'Rand Income' (if foreign currency) 'Foreign Income', Date created, Disk No = if first disk 0001, Output format (if test disk advise 'Test' etc), append to existing disk = blank eg: if either only one payroll or if first payroll being created, if second or foreign currency tick this box, then enter all creators details->check all default tabs and>click on 'Validate'. Select 'Processing'. Select 'Tax Year End'. Select 'SARS Return'. The following screen will be displayed. NB: PLEASE ENSURE THAT THE 1st TWO SCREENS HAVE BEEN CORRECTLY ADVISED, THE 3rd SCREEN IS OBLIGATORY D-BIT Systems (Pty ) Ltd

57 Processing Tax Year End This Disk - Mandatory 2. Tax Authority - Mandatory 3. Defaults - Obligatory Validate This procedure is mandatory and has to be run when run prior to being able to generate the SARS disk successfully. The system will perfom the validation checks and give a log of validation errors to be corrected. This Disk Tax Year = Current tax year (2011) Period = for February 02 and for August 08 Income type = Rand Income (if foreign enter Foreign Currency) Date = Date disk is being generated MAY NOT BE GREATER THAN CURRENT DATE!!! Trade Class = This is the trade class your company is registered. Output format = Test (Change to 'LIVE' when file is ready to be uplifted to e@syfile) Source Payroll = Payroll/s Append to an existing disk = tick on only if 2nd company being run with same tax reference number or foreign income, creators information. Test validation before tax year end - enable you to validate SARS requirements at any time of the year. Used relaxed validation for February this is automatically ticked on to obey the relaxed validations from SARS. Tax Authority NB: Creators PAYE Number, Postal Address and Postal Code are Automatically displayed from the information advised on the 'Tax Authority Maintenance' screen. If this information has changed/incorrect, please correct on: Tax Authoritiy Enter Contact Person and Contact Number Defaults This screen is obligatory, and only need be advised if you wish the system to make certain defaults while creating the SARS Disk. NB: NEW Switch to validate SARS Tax Calculation, the default is always on D-BIT Systems (Pty) Ltd

58 57 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 This screen is obligatory, and only need be advised if you wish the system to make certain defaults while creating the SARS Disk. NB1: The employee's data files WILL NOT be updated with the defaults, NB2: It is D-BIT's recommendation that you DO NOT 'Tick' on any defaults when running the SARS disk for the first time( validate SARS tax calculation is an automatic default ON), rather get the list of validation errors, so that this information can be corrected at a later point in time. PROCESSING 'VALIDATE' TAB Click on the 'Validate' tab sytem will process validations. If the are errors a message will be displayed. Click 'OK' and the error/warning log will be displayed D-BIT Systems (Pty ) Ltd

59 Processing Tax Year End 58 NB: ALL VALIDATIONS MUST BE CLEARED PRIOR TO GENERATING THE SARS DISK Generate LIVE Disk NB: If validations were run successfully and you exit the SARS Return, when you re-enter the validations must be run again and then generation of the disk may be run. NB2: Set as a 'LIVE' disk. Click 'OK' screen will be displayed where you can save the created disk at a destination of your choice. Click 'Save'. Click 'OK'. The following report will be printed once the file has been saved D-BIT Systems (Pty) Ltd

60 Tax Year End Guide - Preparation And Procedures For Tax Year End 2012 Print IRP5/IT3(a) Certificates NB: ONLY print certificates when the 'LIVE' disk has been successful. Print Summary Page? - tick if you want the last page with the totals to print. If you are printing one certificate then do not tick this on. Save document to disk? - tick if you would like to save the certificates to a directory or other media. Use CTWEBLink order? - for labour brokers Use PDF format? - tick id you want the certificates printed in PDF. Publish to image file? - tick if you would like the certificates stored in to the 'Image' file in your data directory file called NPIMAGE. You will then be able to go to view/print certificates for employee's from maintenance->image Maintenance. Below is the 2 Page Tax Certificate: Page 1 - Demographic Information D-BIT Systems (Pty ) Ltd

61 Processing Tax Year End 60 Page 2 - Financial information for the employee Tax Certificate Numbers This report lists by employee either Auto IRP5/IT3(a) numbers (ie: certificate numbers generated for employee's when running Tax Year End Procedures), or Manual IRP5/IT3(a) numbers IF they were advised onto the employee's tax record. This information is required on the 'IRP501' return for SARS when submitting electronic file. Go to 'Processing'->Tax Year End->Tax Certificate Nos Schedule->Enter Selection Criteria, Current Tax Year must be selected->print D-BIT Systems (Pty) Ltd