This question is regarding amendments in EMP 201/501. The start date of an employee has changed. For eg, The start date was 24rth December, but the amended start date is 24th Nov. He is getting paid for the whole month of December (excluding payment made previously) and 6 days of November In March 2016. He ceased working in January 2016. Should we revise the EMP 201 of November and December? (Accrual Basis) Or Should we treat the payment in march as a one time pay and amend EMP 501 only? (Payment basis)
It would be best to revise the EMP201 and then if you receive a penalty from SARS dispute that however you can do it via the 501 now and make the payment in March, in the end it wont make a difference to the actual calculation.
TaxTimsays: 23 March 2016 at 10:24
If the employee ceased work in Jan 2016 then all his earnings should be in the 2015/2016 tax year (i.e. 1 March 2015 - 28 Feb 2016) and reflected on his 2016 IRP5. You should therefore amend the EMP201s if possible so that his earnings are all reflected in the correct tax year.
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