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What happens if the employer made a mistake on the IRP5s resulting in employees owing SARS?



Employer forgot to include medical contributions' taxable fringe benefit in the calculation of tax payable but reflected the deemed amount under code 3810, 4005 and 4474. As a result of the changes on the way the allowable medical expenses are claimed at assessment, employees end up owing SARS. What options does the employer have to remedy the situation?

TaxTim TaxTim says:
9 July 2013 at 10:08

As an employer you can correct the IRP5's and resubmit them to SARS. You can then reissue them to your employees as well, but bear in mind this takes some time so you would need to advise your employees to be patient and only submit their returns once the changes have been made!

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