A STEP-BY-STEP GUIDE TO THE EMPLOYER RECONCILIATION PROCESS

EF NO. Trading or Other Name: Transaction Year: Time Stamp: 21159840 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS Transaction Year (CCYY) Period of econciliation (CCYYMM) Business Information Employer econciliation Declaration EMP501 (CCYYMMDD) Business Physical Address Details ef SDL ef UIF ef Nature of Person: Individual Partnership Company / Public / Local Association Estate / Liquidation / CC/ShareBlock Authority not for Gain Trust Trading or Other Name Surname or egistered Name Initials Bus Tel Fax Cell Date of Birth ID Passport CK Business Income VAT ef Tax ef Contact Email Unit Complex (if applicable) Street Street/Name of Farm Suburb / District City / Town Postal Code Postal Address Details Mark here with an "X" if same as above or complete your Postal Address. Employer Bank Account Details Account Account Holder Name EF NO.: SDL EF NO.: UIF EF NO.: Period Of econciliation:: Trading or Other Name:: Transaction Year:: Time Stamp: 21159554 EMP501_O 2010.5.0 English 2010 01/03 Trading or Other Name Individual Certificates Form ID: EMP501 Postal Code Employee Information Surname / Trading Name First Two Names Initials Passport elationship: In Name of Business Club Account Type: Cheque Country of Issue (e.g. South Africa = ZAF) Activity within Major Division NOTE: egistered details will be updated with the supplied information Declaration PGINF01 Welfare Organisation I hereby declare that this reconciliation is true and correct and that all tax, levies and contributions required to be deducted has been declared and all payments declared have been made. I hereby accept liability for any differences due. Signature: Date (CCYYMMDD) Nature of Person Transaction Year (CCYY) Contact Email Employee Address Details - esidential Unit Complex (if applicable) Street Street / Name of Farm Suburb / District City / Town Employee Address Details - Postal Mark here with an X if same as above or complete your Postal Address Date of Birth (CCYYMMDD) Employee emuneration Bank Account Details For enquiries go to www.sars.gov.za or call 0800 00 SAS (7277) Third Party Savings / Transmission EF NO.: SDL EF NO.: UIF EF NO.: Year of Assessment (CCYY) : Transaction Year: Form ID: IP5IT3a Time Stamp: 21159945 IP5IT3a_O 2010.2.0 English 2010 01/02 Passport Country of Issue (e.g. South Africa = ZAF) ID Postal Code Postal Code Period of econciliation (CCYYMM) Income Tax ef Mark here with an X' if not paid electronically or if foreign bank account Account Branch Bank Name Branch Name Account Holder Name econciliation Declaration Adjustment Home Tel Bus Tel Fax Cell Employer eference Numbers ef Transaction Year (CCYY) SDL UIF ef ef ef Number of Trading or Years with Other Name Adjustments 0 2 SDL ef UIF ef Employee Income Tax Certificate IP5/IT3(a) Type of Certificate Bank Account Type Joint 3rd Party Account Holder Own Bond Acc. elationship: Account Type: Acc. Cheque / Current EMP701 Adjustment Declaration EMPADJ01 Transaction Year Previous Declaration Difference Adjusted Declaration Liability SDL UIF Total Due By / To You Adjustment Declaration EMPADJ02 Transaction Year Transaction Year (CCYY) Previous Declaration Difference Adjusted Declaration ef Liability SDL UIF Total Tax Certificate Cancellation Declaration Due By / To You EMP601 Sum of Adjusted Declaration(s) EMPSUM01 Total Due By / To You Payment Payment SDL UIF Total Payment Specify all individual cancelled certificates in this section Savings Acc. Credit Card Acc. IPINF01 Transmission Acc. Subscription Share Acc. Certificate anges From Number Declaration Date (CCYYMMDD) For enquiries go to www.sars.gov.za or call 0800 00 SAS (7277) : SDL: Signature UIF: Trading Name: I hereby declare that this reconciliation is true and correct and that all tax, levies and contributions required to be deducted has been declared and all payments declared have been made. I hereby accept liability for any difference due. To Number From Number To Number Transaction Year: Time Stamp: 21159880 Form ID: EMP701 EMP701_O 2010.1.0 English 2010 01/01 Specify all cancelled certificate ranges in this section From Number To Number From Number To Number Declaration I declare that the above certificates have been cancelled. All related transactions have been rectified. Employer Signature Date(CCYYMMDD) Form ID: EMP601 EMP601_O 2010.3.0 English 01/01 2010 SEPTEMBE 2011 1

CONTENTS 1. GLOSSAY OF TEMS... 1 2. OVEVIEW... 2 3. UNDESTANDING THE NEW ECONCILIATION POCESS... 2 4. e@syfile TM Employer... 3 5. THE EMPLOYE ECONCILIATION DECLAATION (EMP501)... 4 4.1. INTODUCTION...5 4.2. COMPLETING THE EMP501...5 4.3. ECONCILIATION...13 4.4. ISSUES THAT MAY AISE...14 6. EMPLOYEE INCOME TAX CETIFICATE [IP5/IT3(a)]... 15 5.1. INTODUCTION...16 5.2. COMPLETING EMPLOYEE INCOME TAX CETIFICATES [IP5/IT3(a)]:...17 7. TAX CETIFICATE CANCELLATION DECLAATION (EMP601)... 24 8. THE ECONCILIATION DECLAATION ADJUSTMENT (EMP701)... 26 9. CODES FO THE COUNTY THAT ISSUED THE PASSPOT... 28 10. EMPLOYE S BUSINESS ACTIVITY CODES... 31 11. LIST OF INCOME AND DEDUCTION CODES FO IP5/IT3(a)... 32 12. ULES FO THE CONSOLIDATION OF SOUCE CODES FOM 2010 YEA OF ASSESSMENT... 39 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

1. GLOSSAY OF TEMS TEM Annual period Commissioner CSV file EMP201 EMP301 EMP501 EMP601 EMP701 EMPSA ID Interim period IP5/IT3a ITEG ITEG certificate SAS SDL Tax liability UIF DESCIPTION The tax year transaction period 1 March to 28/29 February The Commissioner of the South African evenue Service Electronic data of your employee tax certificates [IP5/IT3(a)s] which is generated using your payroll system Monthly Employer Declaration Underpayment on Account letter Employer econciliation Declaration Tax Certificate Cancellation Declaration econciliation Declaration Adjustment Employer Statement of Account Identity number The six month transaction period 1 March to 31 August Employee Tax Certificate Income Tax egistration Income Tax egistration certificate Pay-As-You-Earn The South African evenue Service Skills-Development-Levy Amount of tax withheld from the employees, which is owed to SAS Unemployment Insurance Fund SEPTEMBE 2011 1

2. OVEVIEW In terms of the Income Tax Act 58 of 1962, employers are required to: Deduct the correct amount of tax from employees Pay this amount to SAS monthly, ensuring SAS receives a Monthly Employer Declaration (EMP201) and the associated payment econcile these deductions and payments during the annual Employers Tax Season and the Interim econciliation period. Issue tax certificates to employees Therefore, during the interim and annual econciliation employers are required to submit accurate reconciliation declarations (EMP501, if applicable, EMP601 and EMP701) in respect of the EMP201 submitted, the payments made and the IP5/IT3(a). SAS has been modernising and simplifying tax processes in line with international best practice. Each year SAS works hard to improve service standards, incorporating the latest technology and developments in tax standards worldwide. Our aim is to provide a straightforward, user-friendly process and solution. With this in mind, we are continually enhancing the process for the Employers Tax Season (interim and annual). We ve introduced additional elements, and these changes are a vital part of SAS s long-term vision to have a more accurate reconciliation process, which has been accommodated for in e@syfile Employer software. In partnering with SAS to work towards our vision, the employer plays a critical role. This guide will help you to fulfil your tax responsibilities to ensure that you have a smooth Employers Tax Season (interim and annual). For further information, please visit a SAS branch, call the SAS Contact Centre on 0800 00 SAS (7277) or visit www.sars.gov.za. 3. UNDESTANDING THE EMPLOYE ECONCILIATION POCESS The employer econciliation process is where an employer is required to submit accurate reconciliation declarations (EMP501, if applicable, EMP601 and EMP701) in respect of the EMP201 submitted, the payments made and the IP5/IT3(a) s. for the: Interim period which is for the transaction period 1 March to 31 August, or Annual period which if for the full tax year 1 March to 28/29 February. The interim reconciliation was introduced in September 2010 and has now become an integral part of the econciliation. The interim reconciliation process is intended to assist employers by: Enabling an easier and more accurate annual reconciliation submission Maintaining an up-to-date employee database egistering employees for Income Tax purposes, as required. reconciliation submissions must be made to SAS by the date, as prescribed by the Commissioner, by notice in the Government Gazette. The reconciliation process has been enhanced since 2008, to provide a simplified process and introduced a free custom-built software (e@syfile Employer) to assist employers in managing their engagements with SAS quickly, easily and conveniently. For more information, refer to section 4 of this guide. The basic reconciliation process has remained constant, with the EMP501 allowing employers to calculate the difference, if any, between the total value of the tax certificates they issued, their total declared liability (EMP201) and their total payments to SAS. All mandatory fields must be completed, as required, and remains the responsibility of the employer to ensure the 2 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

information provided to SAS is accurate at the time of submission. This information is critical in fulfilling SAS s long-term vision to have a more accurate reconciliation process. It will also set the foundation for increasingly efficient processing of submissions. Making your submission: Submission can be made via the following channels: Electronic submissions: It is important to note that only the latest version of e@syfile Employer must be used as any information submitted to SAS using a previous version will not be accepted. For the latest version, refer to SAS efiling website www.sarsefiling.co.za. Online using e@syfile Employer via SAS efiling using an efiling username and password. On a disc at a SAS branch - the disc must contain an encrypted file created by the e@syfile Employer software. To create the encrypted file, generate the CSV tax certificate file from the payroll system, import this into e@syfile Employer and prepare the employer reconciliation declarations for submission. Signed hard copies of the EMP501, and, if applicable, the EMP601 and EMP701 must be submitted together with the disc. Once SAS has captured the information, the disc will be returned to you, to sustain the security of the information provided. Employers must import CSV files into e@syfile Employer as SAS no longer accepts CSV files directly from payroll systems. Manual submissions: Over the counter at a local SAS branch By placing it in a SAS drop box By post. The original Employer econciliation forms that were posted to you by SAS must be submitted, as these forms contain a unique printed barcode for purposes of capturing and storing data. No copies or self-printed forms will be accepted. Copies of all declarations submitted must be retained for a period of five (5) years. 4. E@SYFILE EMPLOYE A major development in the reconciliation process was the introduction of free software (e@syfile Employer) to reduce turnaround times and errors, and ultimately provides a simpler, more convenient process for both employers and SAS. e@syfile Employer is a software package which has been designed by SAS to help employers manage their engagements with SAS quickly, easily and conveniently on the computer, in the comfort of the office or home. This software can be used offline and only need to connect to the internet when submitting to SAS. Using e@syfile Employer, employers can: 1. Finalise, submit and pay Monthly Employer Declaration (EMP201). 2. Finalise and submit interim and annual Employer econciliation Declarations in five basic steps: Step 1 - The employer s current payroll system generates electronic IP5/IT3(a)s in a CSV file which is imported into e@ syfile Employer. Step 2 - The employer uses e@syfile Employer to capture all manual certificates. Step 3 - e@syfile Employer uses information from all the IP5/IT3(a)s to automatically populate certificate totals for the EMP501. The employer enters the monthly liabilities and payments, and e@syfile Employer calculates the rest. Step 4 - You can make your declaration by generating the CSV tax certificate file from the payroll system, and importing this file into e@syfile Employer for submission to SAS. Step 5 Cancel certificates (EMP601), or makes adjustments to previous year s reconciliation submissions EMP701, if applicable. Then submit your reconciliation declarations to SAS. SEPTEMBE 2011 3

e@syfile Employer automatically generates an Adobe PDF version of all IP5/IT3(a)s which can be given to employees (either printed or electronically) for Personal Income Tax (PIT) filing season. When creating the reconciliation submission, employers have the option of storing the PDF certificates created as part of the reconciliation. However, for the Interim econciliation, IP5/IT3(a)s these certificates must not be issued to employees, as they are for SAS s administrative purposes only. Certificates should only be provided to the employees whose employment was terminated prior to the closing of the interim period, due to resignation, death, immigration or any employer ceasing to be an employer, the certificate number must reflect the full reconciliation period (02). 3. egister employees for Income Tax and obtain feedback Employers are able to use e@syfile Employer to register employees for Income Tax. To help employers three registration options are made available namely: Individual Income Tax egistration (ITEG), where an employer can apply to register employees individually. Bulk ITEG, where SAS registers employees using the econciliation submissions provided by employers. Bundled ITEG which enables employers to register multiple employees (maximum of 100) at a time and limited to 1000 employees per month, for those employees that were not registered as partof the employer s previous reconciliation submission. Feedback to employers on the outcome of the registration process for employees is made available. For more information on the registration of employees, refer to the e@syfile Employer User Guide available on the SAS website www.sars.gov.za. 4. eceive all letters and correspondence issues by SAS All communication issued by SAS on efiling is also available through e@syfile Employer. Employers can therefore keep abreast of any changes or matters of interest which may affect them. It is important to note that only the latest version must be used as any information submitted to SAS using a previous version of e@syfile Employer, will not be accepted. The updated version of e@syfile Employer can be accessed by: Visiting the SAS efiling website www.sarsefiling.co.za and downloading the latest version. Calling the SAS Contact Centre on 0800 00 SAS (7277) or visiting your local SAS branch and requesting the latest version of the e@syfile Employer CD to be posted. (It may take more than two weeks to be delivered to you and will only be delivered to physical street addresses, not post boxes). 4 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

5. THE EMPLOYE ECONCILIATION DECLAATION (EMP501) Transaction Year (CCYY) Period of econciliation (CCYYMM) ef SDL ef UIF ef Employer econciliation Declaration EMP501 Business Information PGINF01 Nature of Person: Individual Partnership Company / CC/ShareBlock Public / Local Authority Association not for Gain Estate / Liquidation / Trust Club Welfare Organisation Trading or Other Name Surname or egistered Name Initials Bus Tel Fax Cell Date of Birth (CCYYMMDD) ID Passport Country of Issue (e.g. South Africa = ZAF) CK Business Income Tax ef VAT ef Activity within Major Division Contact Email Business Physical Address Details Unit Street Suburb / District City / Town Postal Address Details Complex (if applicable) Street/Name of Farm Postal Code NOTE: egistered details will be updated with the supplied information Declaration I hereby declare that this reconciliation is true and correct and that all tax, levies and contributions required to be deducted has been declared and all payments declared have been made. I hereby accept liability for any differences due. Signature: Mark here with an "X" if same as above or complete your Postal Address. Postal Code Date (CCYYMMDD) For enquiries go to www.sars.gov.za or call 0800 00 SAS (7277) Employer Bank Account Details Account Account Holder elationship: In Name of Branch Business Third Party Account Holder Name Account Type: Cheque Savings / Transmission 5.1 INTODUCTION Employers are now required to complete two reconciliation declarations per tax year. All fields are mandatory. 5.2 COMPLETING THE EMP501 The sections will either be optional, mandatory or not required, and must be completed according to the Nature of Person. Please note which alphabet has been used to denote the relevant Nature of Person field when completing your EMP501: A: Individual B: Partnership C: Company/CC/Shareblock D: Public/Local Authority E: Association not for Gain F: Estate/Liquidation/Trust G: Club; or H: Welfare organisation. 1 Completing the header details: Transaction Year: This is an internal term representing the year to which the EMP501 refers. Period of econciliation: Fill in the submission period to which the declaration relates. This value is the transaction year followed by the concluding calendar year month of the reconciliation, i.e. if the reconciliation is for the period up to August 2011, use 201108. ef No: Fill in the employer s reference number. SDL ef No: Fill in the employer s SDL reference number. UIF ef No: Fill in the employer s UIF number. SEPTEMBE 2011 5

2 Completing the Business Information: Business Information PGINF01 Nature of Person: Individual Partnership Company / CC/ShareBlock Public / Local Authority Association not for Gain Estate / Liquidation / Trust Club Welfare Organisation Trading or Other Name Surname or egistered Name Initials Bus Tel Fax Cell Date of Birth (CCYYMMDD) ID Passport Country of Issue (e.g. South Africa = ZAF) CK Business Income Tax ef VAT ef Activity within Major Division Contact Email Business Physical Address Details Nature of Person: Please check the applicable box for the relevant business type. Trading or Other Name: Fill in the business trading or other name. Surname or registered name: For a natural person (A and where applicable F) fill in the surname and initials. For non-natural person (B, C, D, E, G, H and where applicable F) fill in the registered name. Initials: Fill in the initials (mandatory for A, optional for F). For the Bus Tel No, Fax No and Cell No fields, please only use numerals without any spaces in between. If you are entering a landline number, ensure that the area code is completed. You must complete either the Bus Tel No or Cell No field. Bus Tel No: Fill in the business telephone number Fax No: Fill in the business fax number. Cell No: Fill in the cellular number. Date of Birth: Fill in the employer s date of birth if you are an Individual (A). For F this field is mandatory if the Initials field has been filled in. ID No: For an individual (A) either the ID or Passport is mandatory. For F this field is mandatory if the Initials field has been filled in. Passport No: For an individual (A) either the ID or Passport is mandatory. For F this field is mandatory if the Initials field has been filled in. Country of Issue: If you have filled in the Passport field, please select the country in which the passport was issued. Please see section 9. Codes for the country that issued the passport. CK No: Please use numerals (optional for C and F). Business Income Tax ef No: Please use numerals (optional for A, C, E, F, G and H). VAT ef No: Fill in the business VAT reference number using only numerals. Activity within Major Division: Fill in the relevant business activity code. efer to VAT 403 Trade Classification Guide. Contact Email: Fill in the email contact details for the business, e.g.: business@email.co.za. 6 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

3 Completing the Business Physical Address Details: Email Business Physical Address Details Unit Street Complex (if applicable) Street/Name of Farm Suburb / District City / Town Postal Code Postal Address Details Unit No: Fill in the unit number if the business is not in a standalone building. Complex: Where applicable, fill in the name of the complex. Street No: Fill in the street number for the street in which the business is located. Street/Name of Farm: Fill in the name of the street or the farm in which the business is located. Suburb/District: Fill in the name of the suburb or district in which the business is located. City/Town: Fill in the name of the city or town in which the business is located. Postal Code: Fill in the postal code for the suburb in which the business is located. 4 Transaction Year (CCYY) Period of econciliation (CCYYMM) ef SDL ef UIF ef Employer econciliation Declaration EMP501 Business Information Completing the Business Postal Company Address / Details: Public / Local Association Estate / Liquidation / Nature of Person: Individual Partnership CC/ShareBlock Authority not for Gain Trust Code Trading or Postal Other Name Address Details Surname or egistered Mark Namehere with an "X" if same as above or complete your Postal InitialsAddress. Bus Tel Fax Cell Date of Birth (CCYYMMDD) ID Passport Club Country of Issue (e.g. South Africa = ZAF) PGINF01 Welfare Organisation CK Business Income Tax ef Postal Code VAT ef Activity within Major Division Contact Employer Email Bank Account Details Business Physical Address Details Unit Complex (if If the postal address details are the same as the residential details, please check the box next to Mark here with an X if applicable) Declaration Street same Suburb / as above or complete your Postal Address. If not, fill in the I hereby employer s declare that this reconciliation postal is true and correct address and that all tax, levies and postal code. District City / Town Postal Address Details Mark here with an "X" if same as above or complete your Postal Address. 5 Street/Name of Farm Complete the Employer Bank Account Details section: Employer Bank Account Details Postal Code Postal Code NOTE: egistered details will be updated with the supplied information contributions required to be deducted has been declared and all payments declared have been made. I hereby accept liability for any differences due. Signature: Date (CCYYMMDD) For enquiries go to www.sars.gov.za or call 0800 00 SAS (7277) Account Account Holder elationship: In Name of Branch Business Third Party Account Holder Name Account Type: Cheque Savings / Transmission EF NO.: SDL EF NO.: UIF EF NO.: Period Of econciliation:: Account No: Fill in the business Trading account or Other Name:: number. Transaction Year:: Time Stamp: 21159554 Form ID: EMP501 Branch No: Fill in the six-digit branch code for the business s bank if not pre-populated. EMP501_O 2010.5.0 English 2010 01/03 Account Holder Name: Fill in the account holder s name. Account Holder elationship: Indicate whether the business s account is in the name of the business or a 3 rd party. Account Type: Indicate whether the business account type is cheque or savings/transmission. SEPTEMBE 2011 7

6 Completing the Declaration section: NOTE: egistered details will be updated with the supplied information Declaration I hereby declare that this reconciliation is true and correct and that all tax, levies and contributions required to be deducted has been declared and all payments declared have been made. I hereby accept liability for any differences due. Signature: Date (CCYYMMDD) For enquiries go to www.sars.gov.za or call 0800 00 SAS (7277) Sign and date your Declaration. 7 Business Information Completing the epresentative section: Nature of Person: Individual Partnership Company / CC/ShareBlock Public / Local Authority Association not for Gain Estate / Liquidation / Trust Club PGINF01 Welfare Organisation Trading or Other Name Surname or egistered Name Initials Bus Tel Fax Cell Date of Birth (CCYYMMDD) ID Passport Country of Issue (e.g. South Africa = ZAF) CK Business Income VAT ef Activity within Optional for A and F, but mandatory for B, C, D, E, G and H. Surname: Fill in the representative s surname. Initials: Fill in the representative s initials. For the Bus Tel No, Fax No and Cell No fields, please only use numerals without any spaces in between. If you are entering a landline number, ensure that the area code is completed. You must complete either the Bus Tel No or Cell No field. Bus Tel No: Fill in the representative s business telephone number. Fax No: Fill in the representative s fax number. Cell No: Fill in the representative s cellular number. ID No: Either ID or Passport is mandatory. Passport No: Either ID or Passport is mandatory. Country of Issue: If you have filled in the Passport field, please select the country in which the passport was issued. Please see section 9. Codes for the country that issued the passport. Capacity: Select the relevant block for the capacity in which you are representing the business. Contact Email: Fill in the representative s email contact details, e.g.: business@email.co.za. 8 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

8 Complete the Contact Person section: Contact Person Surname Initials Bus Tel Fax Cell ID Contact Email Passport Country of Issue (e.g. South Africa = ZAF) Tax Practitioner Please fill in the contact person section if you have not filled in the representative section. Surname: Fill in the contact person s surname. Initials: Fill in the contact person s initials. For the Bus Tel No, Fax No and Cell No fields, please only use numerals without any spaces in between. If you are entering a landline number, ensure that the area code is completed. You must complete either the Bus Tel No or Cell No field. Bus Tel No: Fill in the contact person s business telephone number. Fax No: Fill in the contact person s fax number. Cell No: Fill in the contact person s cellular number. ID No: Either ID or Passport is mandatory. Passport No: Either ID or Passport is mandatory. Country of Issue: If you have filled in the Passport field, please select the country in which the passport was issued. Please see section 9. Codes for the country that issued the passport. Contact Email: Fill in the contact person s email contact details, e.g.: business@email.co.za. 9 Complete the Tax Practitioner section: Email Tax Practitioner Surname Initials Bus Tel Fax Cell eg P - Contact Email eason for Over / Understatement of Declaration This section is optional. Surname: Fill in the tax practitioner s surname. Initials: Fill in the tax practitioner s initials. For the Bus Tel No, Fax No and Cell No fields, please only use numerals without any spaces in between. If you are entering a landline number, ensure that the area code is completed. You must complete either the Bus Tel No or Cell No field. Bus Tel No: Fill in the tax practitioner s business telephone number. Fax No: Fill in the tax practitioner s fax number. Cell No: Fill in the tax practitioner s cellular number. eg No: Fill in the tax practitioner s registration number. Contact Email: Fill in the tax practitioner s email contact details, e.g.: business@email.co.za. SEPTEMBE 2011 9

10 Completing the eason for Over / Understatement of Declaration section: eason for Over / Understatement of Declaration eason Where applicable, state the reason for the over/understatement of your declaration. 11 Completing the, SDL & UIF sections: ands only, no cents SDL ands only, no cents UIF ands only, no cents Total Monthly Liability ands only, no cents March April May June July August September October November December January February Annual Total These fields are a summary of the monthly liabilities for, SDL and UIF as recalculated during the reconciliation process. They are all numeric fields and cents must be omitted or rounded off to the nearest rand. A zero liability should be indicated using 0. The Total Monthly Liability is the sum of the, SDL and UIF liabilities for the relevant month. The totals may be for a twelve-month or six-month period, for the annual or interim (biannual) reconciliation respectively. : Fill in the amounts for the business per month. SDL: Fill in the SDL amounts for the business per month. UIF: Fill in the UIF amounts for the business per month. These fields are a summary of the monthly liabilities for, SDL and UIF as recalculated during the reconciliation process. The totals may be for a six month or 12 month period, in respect of biannual or annual reconciliations respectively. 10 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

12 Completing the Total Payments section: Total Payments ands only, no cents Financial Particulars PDFY01 Transaction Year (CCYY) Period of econciliation (CCYYMM) ef SDL ef UIF ef ands only, no cents SDL ands only, no cents UIF ands only, no cents Total Monthly Liability ands only, no cents Total Payments ands only, no cents March Fill in the total payments for the business per month. April The May monthly total of all actual payments made to SAS in respect of, SDL and UIF for the relevant month should be June indicated. This must exclude any additional tax, interest and penalties paid. July They are all numeric fields and cents must be omitted or rounded off to the nearest rand. August September October November 13 December Financial Particulars Completing January the Total Period of section: Transaction Year (CCYY) February econciliation (CCYYMM) ef SDL ef UIF ef PDFY01 Annual Total Difference Liability & Certificates Values March Total Value of Tax Certificates Total Value April Tax Certificates of Electronic Total Value of Manual Tax Certificates May This is the sum of either the six (interim) or twelve-month (annual) period in respect of, SDL and UIF, giving a grand total of all the monthly liabilities for that period. June ands only, no cents SDL ands only, no cents This field is automatically calculated for electronic submissions. Financial July Particulars Period of EF NO.: SDL EF NO.: UIF EF NO.: ef Transaction Year (CCYY) econciliation August (CCYYMM) econciliation:: Period Of UIF ands only, no cents Declared Liability ands only, no cents Total Monthly Liability ands only, no cents (excl. Additional Tax, Interest and Penalties) Due By / To You ands only, no cents Total Payments ands only, no cents Trading or Other Name:: September Transaction Year:: SDL UIF Total Monthly Liability Total Payments Time Stamp: 21159554 Form ID: EMP501 ands only, no cents ands only, no cents ands only, no cents ands only, no cents ands only, no cents EMP501_O October If the SDL 2010.5.0 UIF English contributions 2010 are not on 03/03the certificates this value must be calculated and the value must be completed. March November April December May January June 14 February July Annual Total Completing Difference August Liability the Total Value of Electronic Tax Certificates section: & Certificates Values September Total Value of Tax Certificates Total Value October of Electronic (excl. Additional Tax, Interest and Penalties) Tax Certificates Declared Liability Due By / To You Total Value November of Manual Tax Certificates ands only, no cents ands only, no cents This is the sum total of the tax value for all electronic tax certificates issued by the employer. December January SDL ef UIF ef PDFY01 15 February EF NO.: SDL EF NO.: UIF EF NO.: Annual Total Period Of econciliation:: Trading or Other Name:: Difference Liability Transaction Year:: & Certificates Values Time Stamp: 21159554 Form ID: EMP501 Total Value of Tax Completing EMP501_O the 2010.5.0 Total Value English of Manual 2010 Tax Certificates 03/03 section: Certificates Total Value of Electronic Tax Certificates Total Value of Manual Tax Certificates Declared Liability ands only, no cents (excl. Additional Tax, Interest and Penalties) Due By / To You ands only, no cents This is the sum total of the tax value for all manually completed tax certificates issued by the employer. EF NO.: SDL EF NO.: UIF EF NO.: Period Of econciliation:: Trading or Other Name:: Transaction Year:: Time Stamp: 21159554 Form ID: EMP501 EMP501_O 2010.5.0 English 2010 03/03 SEPTEMBE 2011 11

16 Financial Particulars Period of Completing Transaction Year (CCYY) the Total Value of Tax Certificates section: econciliation ef & Certificates Values (CCYYMM) SDL ef UIF ef PDFY01 Total Value of Tax Certificates Total Value of Electronic March Total April Value of Tax Certificates (): To calculate this value, add the Total Value of Electronic Tax Certificates May and the Total Value of Manual Tax Certificates. June Total Value of Tax Certificates (SDL): To calculate this value, add the total of the SDL contribution on each tax July certificate (where applicable). Alternatively, calculate and capture this value manually. August Total September Value of Tax Certificates (UIF): To calculate this value, add the total of the UIF contribution on each tax certificate (where October applicable). Alternatively, calculate and capture this value manually. November December January 17 February PDFY01 Completing the Difference Liability & Certificate Values section: SDL ef UIF ands only, no cents Total Monthly Liability ands only, no cents Annual Total Difference Liability & Certificates Values Total Value of Tax Certificates Total Value of Electronic Tax Certificates Total Tax Certificates Value of Manual ands only, no cents Total Monthly Liability ands only, no cents SDL ands only, no cents UIF ands only, no cents Total Monthly Liability ands only, no cents Declared Liability ands only, no cents Total Payments ands only, no cents Subtract the total annual liability from the total value of certificates in respect of, SDL and UIF to give a difference (if any). (excl. Additional Tax, Interest and Penalties) Due By / To You ands only, no cents Difference Liability & Certificate Values (): To calculate this value, subtract the Annual Total ( column) from the Total Value of Tax Certificates ( column). Difference Liability & Certificate Values (SDL): To calculate this value, subtract the Annual Total (SDL column) from EF NO.: SDL EF NO.: UIF EF NO.: Period Of econciliation:: the Total Value of Tax Certificates (SDL column). Trading or Other Name:: PDFY01 Transaction Year:: Time Stamp: 21159554 Form ID: EMP501 UIF ef Difference Liability & Certificate Values (UIF): To calculate this value, subtract the Annual Total (UIF column) from EMP501_O 2010.5.0 English 2010 03/03 the Total Value of Tax Certificates (UIF column). Total Payments ands only, no cents Difference Liability & Certificate Values (Total Monthly Liability): To calculate this value, add the following: Difference + SDL Difference + UIF Difference. 18 UIF ef Total Payments ands only, no cents Completing the Declared Liability section: Declared Liability ands only, no cents (excl. Additional Tax, Interest and Penalties) Due By / To You ands only, no cents Add your total annual liability for, SDL & UIF plus the total difference (if any) to arrive at your final declared liability. Form ID: 03/03 EMP501 19 ared Liability ds only, no cents Completing the Due By/To You section: (excl. Additional Tax, Interest and Penalties) Due By / To You ands only, no cents Subtract your Total Payments from your Declared Liability for the year. Any positive amount is due by you and any negative amount is due to you. 12 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

5.3 ECONCILIATION 5.3.1 How to reconcile econciliation involves matching all tax due (liabilities) with all tax paid and checking these against the total value of all tax certificates issued. These three amounts should all be equal. The reconciliation process only relates to tax paid and not additional tax, penalties or interest. 5.3.2 econciliation steps for employers: 1 Before you complete your EMP501 (for the annual or interim submission), determine the total income of each employee for that year and recalculate the tax based on that amount. IP5/IT3(a)s should reflect the income, deductions and tax as calculated at this point. 2 If the recalculated liability according to your tax certificates is different to what was previously declared in your monthly EMP201s, you need to determine in which month(s) these differences occurred. 3 Capture all the relevant demographic information in the Business Information and Contact Details sections. 4 Capture all your monthly liabilities for, SDL and UIF using these revised figures in the Financial Particulars section on the EMP501 (i.e. where different, the liabilities inserted on the EMP501 should be the final calculated liabilities rather than the liabilities declared on the EMP201). 5 Capture your total monthly payments made in respect of, SDL and UIF but excluding payments made in respect of interest, penalties and additional tax. These are the actual payments you have made to SAS throughout the year no recalculations needed. 6 Calculate the totals and difference fields (If using e@syfile TM Employer simply click on the self-assess button in order to populate all the totals and difference fields for you). 7 Employers must calculate the SDL and UIF totals and capture the values. If the SDL and UIF contributions are not on the certificates this value must be calculated and completed. 8 When settling any shortfall reflected in the reconciliation, the payment must be allocated to the period(s) in which the shortfall occurred. If the relevant period cannot be determined, the payment should be allocated to the last active period within the transaction, which is August (interim) or February (annual). SEPTEMBE 2011 13

5.4 ISSUES THAT MAY AISE 5.4.1. Where you had a credit due that you used in settling a liability this year, you should add it to the payment field for that particular month in finalising your reconciliation. 5.4.2. The following are the most common instances where the recalculated (actual) monthly liabilities could differ from the original declared liability amount on the EMP201s: A delay in implementing the correct tax tables. This may have resulted in an over/under-deduction of tax in the months prior to the tax tables being introduced. As long as the adjustments are made in the month following the tax tables being made available, the original EMP201 amounts need not be revised. When performing your final tax liability calculation for employees, differences could arise as a result of fluctuations in monthly remuneration. Where this has occurred the differences must be reflected in the relevant month (e.g. in the month that a person resigns or end of the tax year). When an employer spreads an employee s tax on their 13th cheque over a tax year and the employee resigns before the bonus is due, there might be an over/under-deduction. Any administrative timing difference in updating your payroll records (e.g. resignation or death of an employee) which is only updated after running the payroll, resulting in an over-payment to SAS). 5.4.3. If you change any data in respect of any reconciliation that has already been submitted to SAS, the certificate(s) can be amended and the EMP501 adjusted accordingly. The revised EMP501 or EMP701 (if changing a declaration for a previous year), and any revised certificates, must then be resubmitted to SAS. 14 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

6. EMPLOYEE INCOME TAX CETIFICATE [IP5/IT3(a)] Transaction Year (CCYY) Year of Assessment (CCYY) Period of econciliation (CCYYMM) Employee Income Tax Certificate IP5/IT3(a) Type of Certificate Employee Information IPINF01 Surname / Trading Name Home Tel First Two Names Initials Passport Nature of Person Date of Birth (CCYYMMDD) Passport Country of Issue (e.g. South Africa = ZAF) ID Income Tax ef Bus Tel Fax Cell Contact Email Employee Address Details - esidential Employer eference Numbers Unit Complex (if applicable) ef Street Street / Name of Farm SDL ef Suburb / District UIF ef City / Town Postal Code Employee Address Details - Postal Bank Account Type Mark here with an X if same as above or complete your Postal Address Account Holder elationship: Account Type: Own Joint 3rd Party Cheque / Current Acc. Bond Acc. Postal Code Employee emuneration Bank Account Details Mark here with an X' if not paid electronically or if foreign bank account Account Branch Bank Name Branch Name Account Holder Name Savings Acc. Transmission Acc. Credit Card Acc. Subscription Share Acc. EF NO.: SDL EF NO.: UIF EF NO.: : Transaction Year: Form ID: IP5IT3a Time Stamp: 21159945 IP5IT3a_O 2010.2.0 English 2010 01/02 Tax Certificate Information Trading or Other Name TCINF01 Employee Address Details - Business Tax Withheld Unit Street Suburb / District City / Town Income eceived Amount Complex (if applicable) Street / Name of Farm Source Code Postal Code Income eceived continued... Amount Source Code Non-Taxable Income 3 6 9 6 Gross etirement Funding Income 3 6 9 7 Gross Non-etirement Funding Income 3 6 9 8 Deductions / Contributions Amount Source Code SITE, 4101 4102 on Lump Sum Benefit, 4115 Employee and Employer UIF Contribution 4141 Employer SDL Contribution, 4142 Total Tax, SDL and UIF, 4149 O eason for Non-Deduction of Employees Tax 4150 Pay Periods Periods in Year of Assessment, of Periods Worked,,, Period Employed From (CCYYMMDD) Period Employed To (CCYYMMDD) Directive Numbers Directive Directive Total Deductions / Contributions Directive 4 4 9 7 EF NO.: SDL EF NO.: UIF EF NO.: : Transaction Year: Form ID: IP5IT3a Time Stamp: 21159945 IP5IT3a_O 2010.2.0 English 2010 02/02 SEPTEMBE 2011 15

6.1 INTODUCTION SAS made changes to the IP5/IT3(a) aimed at improving data quality for both the employer and SAS. Employers making use of manual certificates may only issue these to employees once SAS is satisfied that the reconciliation has been completed correctly. The manual certificates with the signed EMP501, and where applicable the EMP601,EMP701 must be submitted to SAS. Employers must allocate unique numbers for every certificate issued to employees A manual IP5/IT3(a) will not be accepted by SAS if all the relevant mandatory fields are not completed All income and deductions reflected on an IP5/IT3(a) must be classified according to the different codes allocated for income and deductions [Please see 11. List of Income and Deduction Codes for IP5/IT3(a)]. All income and deductions codes used on an IP5/IT3(a) must be completed on the IP5/IT3(a) in numeric sequence. A separate IP5/IT3(a) may not be issued to the employee in respect of the same remuneration, and no blank certificates may be issued Where the employee s remuneration consists of local and foreign remuneration, separate IP5/IT3(a) certificates must be issued for each type of remuneration. The month of reconciliation for the calendar year is indicated by a two-digit number. If the reconciliation is for the period up to February, the format is 02. If the period is up to August, the format is 08. This means that the tax certificates submitted for the interim reconciliation will differ from the certificates submitted annually in the following ways: Interim tax certificates will only be issued to SAS and must not be issued to employees Interim tax certificates will reflect information on income and deductions for a maximum period of six months. Employees tax must be reflected against code 4102 (). The total amount must not be split into SITE(4101) and (4102) For employees whose employment was terminated prior to the closing of the interim period, for instance due to resignation, death, immigration or where the employer ceased to be an employer: The tax certificate must reflect financial information for the period actually employed Where there were deductions in respect of employees tax, it must be split and reflected against code 4102 () and 4101(SITE) The calendar month in the tax certificate number (code 3010) must be specified as 02 to indicate that this is a final tax certificate. The same certificate should be submitted to SAS at the end of the tax year as part of the final submission. 16 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

5.2 COMPLETING EMPLOYEE INCOME TAX CETIFICATES [IP5/IT3(a)] 1 Completing the header details: Transaction Year (CCYY) Year of Assessment (CCYY) Period of econciliation (CCYYMM) Employee Income Tax Certificate IP5/IT3(a) Type of Certificate Employee Information IPINF01 Transaction Year: This is an internal term representing the year to which the EMP501 refers. Year of Assessment: Fill in the year of assessment to which the income relates. Period of econciliation: Fill in the tax period to which the income relates. Certificate No: This unique thirty-digit number is allocated by the employer for each specific IP5/IT3(a) certificate issued. The certificate number is comprised of: The ten-digit employer reference number (or alternatively, the Income Tax number if this has been used) The four-digit Transaction Year The two-digit concluding calendar year month for the reconciliation, i.e. if the reconciliation is for the period up to February, the format will be 02, or if the period is up to August, the format will be 08. If a final IP5/IT3(a) is issued during the year, use 02. A fourteen-digit combination of alpha and numeric characters formulated at the employer s discretion to complete the number. Type of Certificate: Specify whether the certificate is an IP5 or an IT3(a). 2 Completing the Employee Information: Employee Information Certificate IPINF01 Surname / Trading Name Home Tel First Two Names Initials Passport Nature of Person Date of Birth (CCYYMMDD) Passport Country of Issue (e.g. South Africa = ZAF) ID Income Tax ef Bus Tel Fax Cell Contact Email Employee Address Details - esidential Employer eference Numbers Surname/Trading Name: If the certificate is for an individual, complete the individual s surname. However, complete the trading name if the certificate is for a trust, company, partnership or corporation. First two Names: Fill in the employee s first and second names if the employee is an individual (either with or without an ID or Passport ), a director of a private company/member of a close corporation, or a pensioner. Initials: Fill in the employee s initials if the employee is an individual (either with or without an ID or Passport ), a director of a private company/member of a close corporation, or a pensioner. Nature of Person: Please enter one of the letters below for the applicable description: A: Individual with an ID or Passport B: Individual without an ID or Passport C: Director of a private company / member of a close corporation D: Trust E: Company/CC F: Partnership G: Corporation H: Employment company/personal service company or CC, or N: Pensioner. SEPTEMBE 2011 17

Date of Birth: Fill in the employee s date of birth if the employee is an individual (either with or without an identity or passport number), a director of a private company/member of a close corporation or a pensioner. ID No: Fill in the employee s ID number. This is mandatory for an individual (with an identity or passport number) if the passport number has not been completed, and optional for a pensioner. Passport No: Fill in the employee s passport number. This is mandatory for an individual (with an identity or passport number) if the identity number has not been completed, and optional for a pensioner. Passport Country of Issue: This is an optional field for the country in which the passport was issued, e.g. South Africa will be ZAF. Please see section 9. Codes for the country that issued the passport. Income Tax ef No: This is an optional field for the employee s Income Tax reference number, and must start with a 0, 1, 2, 3 or 9. Home Tel No: This is an optional field for the employee s home telephone number. Bus Tel No: This is an optional field for the employee s business telephone number. Fax No: This is an optional field for the employee s fax number. Cell No: This is an optional field for the employee s cellular telephone number. Contact Email: This is an optional field for the employee s email contact details. 3 Completing the Employee Address Details esidential section: Email Employee Address Details - esidential Unit Street Suburb / District City / Town Complex (if applicable) Street / Name of Farm Employee Address Details - Postal Postal Code E P S U B Unit No: Fill in the unit number if the employee does not reside in a standalone house. Complex: Where applicable, fill in the name of the complex. Street No: Fill in the street number of the residence in which the employee resides. Street/Name of Farm: Fill in the name of the street or the farm where the employee resides. Suburb/District: Fill in the name of the suburb or district in which the employee resides. City/Town: Fill in the name of the city or town in which the employee resides. Postal Code: Fill in the postal code for the suburb in which the employee resides. 4 Completing the Employer eference Numbers section: Employer eference Numbers ef SDL ef UIF ef ef No: Fill in the employee s reference number. This number must begin with a 7 if the employer is registered for employees tax purposes, and with a 0, 1, 2, 3 or 9 if the employer is not registered. Where the reference number begins with 0, 1, 2, 3 or 9, the tax value on the certificate cannot be completed but the reason for the non-deduction must be filled in. SDL ef No: Fill in the employee s SDL reference number. UIF ef No: Fill in the employee s UIF reference number. 18 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

5 Completing the Employee Address Details Postal section: Employee Address Details - Postal Code Mark here with an X if same as above or complete your Postal Address A A Employee emuneration Bank Account Details Postal Code If the postal address details are the same as the residential details, please check the box next to Mark here with an X if same as above or complete your Postal Address. If not, fill in the employee s postal address and postal code. 6 Completing the Employee emuneration Bank Account Details section: Code Employee emuneration Bank Account Details Mark here with an X' if not paid electronically or if foreign bank account Account Branch Bank Name Branch Name Account Holder Name Period of econciliation (CCYYMM) l. Income Tax ef If the employee s payment is made into a foreign bank account, or if they are not paid electronically, please check Mark box with an X if not paid electronically or for foreign bank account. Further bank details are not required in this case. Account No: Fill in the employee s account number. Branch No: Fill in the six-digit branch code for the employee s bank if not pre-populated. Bank Name: Select the employee s IPINF01 bank from the pop-up that appears. Home Tel Branch Name: Fill in the branch name for the employee s bank if not pre-populated. Bus Tel Fax Account Holder Name: Fill in the name of the account holder. Cell 7 Employer eference Numbers ef Type of Certificate SDL ef Completing the Bank Account Type section: UIF ef Employee Income Tax Certificate IP5/IT3(a) Bank Account Type Account Holder Own Joint 3rd Party elationship: Account Type: Cheque / Current Acc. Bond Acc. Savings Acc. Credit Card Acc. Transmission Acc. Subscription Share Acc. Branch Account Holder elationship: Indicate whether the employee s account is Own, Joint or 3 rd Party. Account Type: Indicate whether the employee has a Cheque/Current Acc, a Bond Acc, a Savings Acc, a Credit Card Acc, a Transmission Acc or Subscription Share Acc. SEPTEMBE 2011 19

8 Completing the Employee Address Details Business section: Pensioners need not complete this section. Tax Certificate Information TCINF01 Trading or Other Name Employee Address Details - Business Tax Withheld Unit Complex (if SITE applicable) Street Street / Name of Farm, 4101 Suburb / District, 4102 City / Town Postal Code on Lump Sum Benefit Income eceived Income eceived continued..., 4115 Employee and Employer UIF Contribution Amount Source Code Amount Source Code Non-Taxable Income, 4141 Unit No: Fill in the unit number if the business address for the employee is not a standalone location. 3 6 9 6 Employer SDL Contribution Gross etirement Funding Income, 4142 Complex: Where applicable, fill in the name of the complex in which the business is located. 3 6 9 7 Total Tax, SDL and UIF Gross Non-etirement Funding Income, 4149 Street No: Fill in the street number for the business location. 3 6 9 8 O eason for Non-Deduction of Employees Tax 4150 Deductions / Contributions Street/Name of Farm: Fill in the street name or farm name where Pay the Periods business is located. Amount Source Code Periods in Year of Assessment, Suburb/District: Fill in the name of the suburb or district in which the business is located. of Periods Worked, City/Town: Fill in the name of the city or town in which the business Period is Employed located. From (CCYYMMDD) Period Employed To (CCYYMMDD) Postal Code: Fill in the postal code for the suburb in which the business is located. Tax Certificate Information Directive Numbers TCINF01 Trading or Other Name Directive Employee Address Details - Business Directive Tax Withheld 9 Unit Complex (if Total Deductions / Contributions Directive SITE applicable) 4 4 9 7 Street Street / Name, 4101 of Farm Completing Suburb / EF NO.: the Income SDL EF NO.: eceived UIF EF NO.: section: District, 4102 City / Town Postal Code IP5IT3a on Lump Sum Benefit : Income eceived Transaction Year: Form ID: Time Income Stamp: 21159945 eceived continued..., 4115 IP5IT3a_O Employee and Employer UIF Contribution Amount Source Code Amount Source Code 2010.2.0 English 2010 02/02 Non-Taxable Income, 4141 3 6 9 6 Employer SDL Contribution Gross etirement Funding Income, 4142 3 6 9 7 Total Tax, SDL and UIF Gross Non-etirement Funding Income, 4149 3 6 9 8 O eason for Non-Deduction of Employees Tax Deductions / Contributions 4150 Pay Periods Amount Source Code Periods in Year of Assessment, of Periods Worked, Period Employed From (CCYYMMDD) Period Employed To (CCYYMMDD) Directive Numbers Directive Directive Total Deductions / Contributions Directive 4 4 9 7 EF NO.: SDL EF NO.: UIF EF NO.: : and amounts should be entered from Transaction Year: Form the ID: IP5IT3a right of the grid, and cents must be rounded off to the nearest rand as per the example below. Time Stamp: 21159945 IP5IT3a_O 2010.2.0 English 2010 02/02 (rand value of income): City / Town Income eceived Code Income eceived continued... Amount Source Code Amount Source Code Non-Taxable Income 50000 3 6 9 6 Gross etirement Funding Income 3 6 9 7 Gross Non-etirement Funding Income 3 6 9 8 Deductions / Contributions Amount Source Code P N P P D D Total Deductions / Contributions D 20 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

Tax Certificate Information Source Trading or Other Name code block: Employee Address Details - Business Unit SAS has Complex simplified (if the submission process by combining required SITE source codes, and eliminating certain redundant Street codes. Suburb / Please see section 11. ules for the Consolidation of Source Codes. District City / Town Income eceived Amount applicable) Street / Name of Farm Source Code EF NO.: SDL EF NO.: UIF EF NO.: Fill in a valid income code. Please see section 10. List of Income and Deduction Codes for IP5/IT3(a) to obtain the : code for the type of income that was received. Transaction Year: Form ID: IP5IT3a Time Stamp: 21159945 IP5IT3a_O 2010.2.0 English 2010 02/02 Postal Code Income eceived continued... Amount Source Code Non-Taxable Income 3 6 9 6 Gross etirement Funding Income 3 6 9 7 Gross Non-etirement Funding Income 3 6 9 8 Deductions / Contributions Amount Source Code Total Deductions / Contributions 4 4 9 7 Tax Withheld, TCINF01 4101 4102 on Lump Sum Benefit, 4115 Employee and Employer UIF Contribution, 4141 Employer SDL Contribution, 4142 Total Tax, SDL and UIF 4149 O eason for Non-Deduction of Employees Tax Pay Periods Periods in Year of Assessment, of Periods Worked Period Employed From (CCYYMMDD) Period Employed To (CCYYMMDD) Directive Numbers Directive Directive Directive,,, 4150 Non-Taxable Income: This is the sum total of all the income amounts which were completed as non-taxable (i.e. code 3696). The amount completed must be excluded from codes 3697 and 3698. Gross etirement Funding Income: This is the sum total of all retirement funding income amounts (i.e. code 3697). This field is mandatory if no value is completed for code 3696 or 3698. Gross Non-etirement Funding Income: This is the sum total of all non-retirement funding income amounts (i.e. code 3698). This field is mandatory if no value is completed for code 3696 or 3697. 10 Completing the Deductions/Contributions section: This section must be completed only if any relevant amount has been deducted from or contributed on behalf of the employee. Deductions / Contributions 3 6 9 8 Amount Source Code Total Deductions / Contributions 4 4 9 7 and amounts should be entered from the right of the grid, and cents must be rounded off to the nearest rand. The rand value for the deductions/contributions must be completed from the right, and the code for the deduction/ contribution must be entered under Source Code in the four blocks next to the rand amount. Total Deductions/Contributions: Fill in the sum total of all deductions/contributions. SEPTEMBE 2011 21

11 Completing the Tax Withheld section: This section deals with the tax amounts which an employer deducts from the employee prior to paying these amounts to SAS. Tax Withheld SITE, 4101, 4102 on Lump Sum Benefit, 4115 Employee and Employer UIF Contribution, 4141 Employer SDL Contribution, 4142 Total Tax, SDL and UIF, 4149 O eason for Non-Deduction of Employees Tax 4150 Pay Periods Please use rands and cents in this section. Source Code 3 6 9 6 3 6 9 7 3 6 9 8 Source Code SITE (4101): Fill in the SITE amount deducted. This field is mandatory if the values for codes 4102 and 4115, and the eason for Non-Deduction of Employees Tax are not completed. (4102): Fill in the amount deducted. This field is mandatory if the values for codes 4101 and 4115, and the eason for Non-Deduction of Employees Tax are not completed. on Lump Sum Benefit (4115): Fill in the amount deducted from the retirement lump sum benefit. This field may only be completed if code 3915 has been completed under Income eceived. Employee and Employer UIF Contribution (4141): Fill in the sum total of both the employee s and employer UIF contributions. Employer SDL Contribution (4142): Fill in the sum total of the employer s SDL contributions. Total Tax, SDL and UIF (4149): Complete this by adding the following totals: SITE (4101) + (4102) + on Lump Sum Benefit (4115) + Employee and Employer UIF Contribution (4141) + Employer SDL Contribution (4142). Tax Withheld eason for Non-Deduction of Employees Tax (4150): Fill in a valid reason code for why the employer has not SITE, deducted any employees tax from the income. This field is mandatory if the values for codes 4101, 4102 and 4115 are not, completed. Please see section 11.7 Employees Tax Deduction and eason Codes. 12 TCINF01 4101 4102 on Lump Sum Benefit 4115 Employee and Employer UIF Contribution 4141 Employer SDL Contribution 4142 Total Tax, SDL and UIF Completing the Pay Periods, 4149 section: O eason for Non-Deduction of Employees Tax Pay Periods Periods in Year of Assessment, of Periods Worked Period Employed From (CCYYMMDD),,,, 4150 Period Employed To (CCYYMMDD) Directive Numbers Directive 4 4 9 7 Directive Periods In Year of Assessment: The number of pay periods into which the employer divides the tax year. This is usually Directive divided either into months or days, and can be any value between 1 and 380. of Periods Worked: The number of periods which the employee worked within the relevant tax year. This is usually divided either into months or days, and can be any value between 1 and 380. Period Employed From: Fill in the date as of when the employee s employment commenced. Period Employed To: Fill in the end date for which the employee s tax is being declared. 22 A STEP-BY-STEP GUIDE TO THE EMPLOYE ECONCILIATION POCESS

13 Completing the Directive Numbers section: Directive Numbers Directive Directive Directive Complete this section as per the example above for the following source codes: 3608, 3614, 3664, 3707, 3757, 3718, 3768, 3901, 3902, 3903, 3904, 3905, 3909, 3915, 3920 or 3921. You may only provide copies of the final IP5/IT3(a) certificate(s) for the period 02. Please also retain copies for your own records. SEPTEMBE 2011 23