Are you ready for year end?

How the right insurer could help you meet those deadlines

February was the end of the tax year and triggers an important deadline for employers. Sixty days after the last day of February (remembering that it is a leap year), employers must file their annual employer reconciliations. These reconciliations cover the tax deducted on SARS’ behalf on their monthly or weekly payroll runs.

This year, the deadline is 31 May 2020, but it is worth putting plans in place now to ensure it is met.

There is no denying that this annual reconciliation is a time-consuming and complex task, but it is one that must be done – and done accurately to avoid penalties. The reconciliation must take into account all the many changes that are made in the course of a busy financial year, including amongst other, backdated changes to payment runs, overtime payments and corrected errors.

It is also essential that companies check to ensure that they are complying with the latest regulations – all too often, new regulations pass unnoticed and then there is a rush to comply with them timeously. Tax legislation keeps on getting more complex and companies with foreign operations need to understand the implications of their tax laws.

Clearly, it is very important to make detailed plans now to ensure that the company is in a position to file by the set deadline. It is a good idea to ensure that you have the services of a registered tax practitioner booked, as these individuals are in short supply at this time of the year.

MiWay clients have their own secret weapon: MiBusiness Assist, a portfolio of business support services designed to help with time-consuming administrative tasks, including financial advice, planning and counselling. Many of these services offered by MiBusiness Assist can be used to help MiWay clients meet their SARS deadlines.

When it comes to your business’ tax year-end compliance, MiWay clients have access to suitably qualified professionals who are able to reconcile the necessary submissions and SARS payments as well as ensure that employee tax certificates (IRP5s & IT3s) are generated accurately before the required deadline, providing you the peace of mind that this has been completed in a timely and compliant manner.

At the same time, the other MiBusiness Assist services like office emergency assistance and IT help desk can also be used to free up employees at this busy time of the year.

It is worth remembering, too, that MiBusiness Assist’s services can and should be used throughout the year to take some of the pressure off your employees. These services also cover vehicle licensing and traffic fines, procurement of goods and services, arranging bookings, and marketing (social media and website setup and support, logo design, domain registration, direct digital marketing and consultation). If you are interested in tenders, the service can also track and alert you to relevant open source industry tenders.

One final word of advice: once you have filed your payroll reconciliations on 31 May 2020, start planning for your half-yearly submission for the 2021 tax year on 31 October 2020. Thereafter, mid-year reconciliations will have to be filed by 31 October 2020 for the 2021 tax year.