Income tax returns for 2010 will soon be due for filing after all the IRP5 Reconciliations (EMP501) were submitted on 31 May 2010. We assisted a number of clients in reconciling and filing their EMP501 returns. SARS' electronic Easyfile system was used extensively this year and (unlike last year) we did not file any return manually. Generally, the Easyfile software performed well.

We noted that a number of our clients kept manual payrolls. Almost without exception in these cases, there were differences in the SDL and UIF calculations. Most clients short paid either SDL or UIF. PAYE deductions were generally in order. We strongly recommend that clients use SARS' approved Payroll Software in order to avoid wrong deductions and wrong calculations.

For further information about our Payroll Service and SARS' approved payroll software, kindly contact me.

Jannie Rossouw