Dear Client

As of the 1st of March 2010, all employers are required to submit two PAYE reconciliations to SARS each year:

• First submission
A six-month interim reconciliation for the period 1 March 2010 to 31 August 2010. The deadline for this submission is 29 October 2010.

• Second submission
A final annual reconciliation for the full tax year from 1 March 2010 to 28 February 2011. The deadline for this submission is 31 May 2011.

The first interim PAYE reconciliation (EMP501) returns are due between 1 September 2010 and 29 October 2010. This interim reconciliation covers the six month period 1 March 2010 to 31 August 2010.

No IRP5 or IT3 certificates are to be issued to employees at this time. IRP5 or IT3 certificates are only to be issued annually, once the final reconciliation is filed with SARS after 28 February 2011. (Only employees that left your employ should receive IRP5 certificates within 14 days of their departure.)

Please ensure that you are attending to this matter as a late or non-rendition of the reconciliation will result in a fine equal to 10% of the PAYE on your payroll and an administrative penalty of R250 per month for so long as the return remains outstanding.

Should you require any assistance in this regard, please contact Elaine Kruger at our offices on 011-849-7888.

We are currently attending to the EMP501 reconciliations of a number of our clients. If you are one of those we normally assist and we have not yet contacted you in this regard, please contact Elaine at the above number.

Jannie Rossouw