CRS Technologies (Pty) Ltd

JUNE 2020 – SOUTH AFRICA

SARS PAYE BRS New version 19.04

It is important that employers note the following:

Mauritius Budget Speech Highlights

SARS PAYE BRS for Employer Reconciliation (2020 release) version 19.0.4 published

SARS has released a new version of the PAYE Employer Reconciliation Business Requirement Specifications (BRS). The changes are in respect of the COVID-19 pandemic and the extended Employment Tax Incentives (ETI) requirements.

The update was published on 18 June 2020, even though the date on the BRS indicates that it was released on 28 April 2020. This release includes amended descriptions and validation rules.

Summary of the changes:

Updated descriptions

Allowance code 3724 is to be used for any payment/benefit received from a COVID-19 Disaster Relief Organisation and paid to an employee.

  • Note: This code must NOT be used for benefits received from the UIF Temporary Employees Relief Scheme (UIF TERS).

This resolves the uncertainty regarding source code 3724, which was incorrectly indicated as the code to use for TERS benefits in the previous version of the SARS PAYE BRS.

Deduction code 4030 is applicable to donations deducted from the employee’s remuneration and paid by the employer to an approved organisation or institution. This includes COVID-19 Disaster Relief Organisations but EXCLUDES the Solidarity Fund.

  • Note: A maximum donation to be allowed as a deduction by the employer when calculating the monthly PAYE is 5% of the employee’s remuneration after deducting allowable retirement fund and retirement annuity fund contributions.

The description for deduction code 4055, applicable to COVID-19 Solidarity Fund donations deducted from an employee’s remuneration and paid by the employer to the Solidarity Fund,  was amended to include the changes published in the second revised 2020 Draft Disaster Management Tax Relief (DMTR) Bill:

  • Note: A maximum donation to be allowed as a deduction by the employer when calculating the monthly PAYE is a percentage of the employee’s remuneration after deducting allowable retirement fund and retirement annuity fund contributions over specific months:
    • 33.33% for three months (April, May and June 2020); or 
    • 16.66% for six months (April to September 2020).Amended validation rules

      The validation rules for allowance code 3026 have changed as follows:

      • If ETI employment date is on or after 01/10/2013 and Year of Assessment (YoA) is not 2021 (added);

      The following validation rules for Monthly calculated ETI, code 7004, were amended and/or deleted:

      • If Code 7005 (ETI qualifying 12 month cycle indicator) is 1, 2 or 3 (previously 1 or 2), then this field must be greater than zero;
      • If YoA is 2021 and month (code 7006) is 04, 05, 06 or 07 and ETI qualifying 12-month cycle indicator (code 7005) is 1, then value cannot be greater than R1750,
        Else, if ETI qualifying 12-month cycle indicator (code 7005) is 1, then value cannot be greater than R1000 (deleted);
      • If YoA is 2021 and month (code 7006) is 04, 05, 06 or 07 and ETI qualifying 12-month cycle indicator (code 7005) is 2, then value cannot be greater than R1250,
        Else, if ETI qualifying 12-month cycle indicator (code 7005) is 2, then value cannot be greater than R500 (deleted);
      • If YoA is 2021 and month (code 7006) is 04, 05, 06 or 07 and ETI qualifying 12-month cycle indicator (code 7005) is 3, then value cannot be greater than R750 (deleted).

      To view the the latest BRS containing all the changes, follow the link.

 

Contact our legislation team at info@crs.co.za if you require any additional information.
© 2020 C
RS Technologies (Pty)Ltd. All Rights Reserved.

Inspired, engaged and rewarded employees
CONTACT INFORMATION
Tel: +27 11 2594700
Email: info@crs.co.za

Centric House, Mellis Court, Mellis Road
Rivonia 2191