Payroll and IRP5 Processes At NMMU

Initial Setup The following basic setups needs to be noted All SARS required information is obtained and captured on appointment of staff i.e. Addresses, I.D. Numbers, Tax reference number etc. Ensure that the data is stored and reported in the correct format. Ensure that you are fully aware of the rules of your funds Analyse the effects of staff benefits and your policies.

Initial Setup The following basic setups needs to be noted The creation of any new Earning or Deduction also needs to be analysed in-depth to determine Correct Tax Code Salary Level Retirement Funding SDL effect UIF effect ETI The above information will be needed, to capture the ED on menu option FPRG- 6

Monthly Processes The following monthly processes are followed at NMMU The SITE report generated with the monthly Calc is analysed and variances identified and corrected if need be. The IRP5 validation report is run on a monthly bases to identify any errors with the HR Biographical details and Payroll. These errors are corrected to ensure a limited validation report in Feb

Prior to Generating the IRP5’s Prior to the final submission of your IRP5’s, roll backs are performed which affects your tax figures for the previous Tax Year. A centralised record is kept of the value of the adjustments made to each SDL, UIF, PAYE which relates to the previous tax year. The total of the adjustments would be needed to reconcile to your IRP5 Recon difference. The final errors are then corrected Validation errors which takes up most of our time is the FTR

IRP5 Generation Generate IRP5 certificates and import into Easy File to identify any validation errors from SARS. Enter payments made to SARS on Easy File which will then compare to the value of certificates The value of the roll backs done after February EMP 201 return, in respect to adjustments to prior tax year should reconcile with recon difference. Please note that it is the employers responsibility for the correct submission of IRP5’s Therefore all employers needs to be aware of the Business Requirements Specification document with regard to PAYE Reconciliation

IRP5 Generation View IRP5’s to verify that it full fills the requirements as per the SARS specifications Once you are happy with the reconciliation the tape can be generated and submitted to SARS Wait for 24 hours to verify that SARS has accepted your recon. Process additional payment with the PRN number used for Feb EMP 201 return. The file can then be submitted to Info-slips or printing mechanism used at your institution. View certificates before issuing to ensure that the format also agrees to SARS requirements. IRP5’s can then be issued to staff