PAYE-AE-06-G07 - Guide for Validation Rules Applicable to ...€¦ · EXTERNAL GUIDE GUIDE FOR VALIDATION RULES APPLICABLE TO RECONCILIATION DECLARATIONS 2017 - PAYE-AE-06-G07 REVISION:

EXTERNAL GUIDE

GUIDE FOR VALIDATION RULES APPLICABLE TO

RECONCILIATION DECLARATIONS 2017

EXTERNAL GUIDE

GUIDE FOR VALIDATION RULES APPLICABLE

TO RECONCILIATION DECLARATIONS 2017 -

PAYE-AE-06-G07

REVISION: 0 Page 2 of 41

TABLE OF CONTENTS

1 PURPOSE 3

2 SCOPE 3

3 BACKGROUND 3 3.1 RECONCILIATION PROCESS 3 3.2 INTERIM RECONCILIATION PROCESS 3 3.3 GENERAL RULES 5

4 ERROR REPORTS 6

5 2017 VALIDATION RULES 6 5.1 EMPLOYER HEADER RECORD VALIDATION RULES 7 5.2 EMPLOYEE INFORMATION RECORD VALIDATION RULES 12 5.3 EMPLOYEE FINANCIAL INFORMATION RECORD VALIDATION RULES 28 5.4 EMPLOYER TOTALS TRAILER RECORD VALIDATION RULES 35

6 CROSS REFERENCES 36

7 DEFINITIONS AND ACRONYMS 37

8 QUALITY RECORDS 41

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1 PURPOSE

The purpose of this guide is to assist employers in understanding the validation rules for completion of Employees’ Income Tax certificates for 2017.

2 SCOPE

This guide prescribes validation rules applicable to:

data (employee tax certificate information) included in CSV files; and fields on employees’ tax certificates which are manually completed.

Validation rules relating to a specific income or deduction code for 2017 are dealt with in PAYE-AE-06-G06.

All fields are mandatory.

Pre-printed blank forms will no longer be issued at branches.

For more information visit the SARS website www.sars.gov.za > Types of Tax > PAYE.

3 BACKGROUND

3.1 RECONCILIATION PROCESS

2017 ADOBE PROCESS (Employees’ Income Tax certificates submitted to SARS from 1 March 2016)

Changes to the specifications for employees’ tax certificates and reconciliation

processes have been introduced (e.g. additional fields on various reconciliation documents, etc.);

The employer demographic information no longer forms part of the certificate as the “Certificate Number” now contains the PAYE reference number of the employer, which links the employer demographic information to the employee;

All validation rules in respect of submissions after February 2012, have been re-instated;

With the introduction of this process, the CSV file layout and validation rules were standardised to ensure that all CSV files (irrespective of the transaction year of the file) comply with the same validation rules.

3.2 INTERIM RECONCILIATION PROCESS

An interim reconciliation process has been introduced in respect of reconciliation submissions after the February 2010 submission.

The interim reconciliation process became effective in August 2010 for reconciliation declarations of 2011 and later transaction years.

Employees’ tax certificates relating to interim reconciliation declarations

The employees’ tax certificate may only be issued to an employee where: o the employer has ceased to be an employer in relation to the employee

concerned (e.g. death, retirement, resignation or immigration of the employee); and

o the employer has ceased to be an employer (e.g. the employer stopped trading).

Employees’ tax deducted from the employee’s remuneration must be reflected under code 4102 (PAYE).

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Note 1: It will be accepted in cases where the employer’s payroll program does the split programmatically.

Note 2: The legal requirements will apply if the employer ceased to be an employer or the employee dies, retires, resigns or immigrates before the closing of the interim period (e.g. 31 August). A final tax calculation at the end of the Employees’ tax period must be done and the certificate must be issued as a final tax certificate with a calendar month indication of “02” in the certificate number.

Reconciliation declarations in respect of the interim submissions:

The actual liability per month for the first 6 months of the tax year (i.e from March to August) must be completed on the declaration.

Submission of reconciliation documents:

The employer reconciles his monthly submission bi-annually at the end of August and February. The six monthly submissions of EMP201 declarations are consolidated into a reconciliation using the EMP501.

The reconciliation documents must be submitted via one of the following available channels: o e@syFile, o eFiling (WPAYE) and, o Service Manager (walk-in clients) -

ETR

Work Flow (WPAYE).

Note 3: No CSV files will be accepted by SARS. CSV files must be imported into e@syFile

TM. Employers who use the e@syFile

TM software must also capture all their

manual certificates by using the application. Note 4: SARS will only accept an EMP701 for adjustments between the years 1999 -2008. From the years 2009 going forward, adjustments for reconciliation submissions must be made by resubmitting a modified EMP501.

Employment Tax Incentive (ETI)

The employer must – o Identify all qualifying employees in respect of that specific month; o Determine the applicable employment period for each qualifying employee; o Determine each employee’s “monthly remuneration”; o Calculate the employment tax incentive amount per qualifying employee;

and o Reduce the amount of PAYE payable by the amount of ETI calculated on the

EMP201 declaration;

Note 5: If the monthly calculated ETI amount claimed exceeds the gross employees’ tax (before ETI) for a specific month, the excess ETI will be carried forward to the next month. The ETI amount claimed will only be allowed to the extent that the “Nett PAYE” is equals to zero. Note 6: The excess ETI carry forward amount shall be refunded to the employer at the end of each reconciliation period (August and February).

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3.3 GENERAL RULES

Tax certificates issued by employers to employees for their personal use may contain

additional information, provided that the information required according to the validation rules is included and that the information for the relevant field is valid.

Tax certificates submitted to SARS must either be in the XML file format or CSV files:

The record structure of CSV files is as follows: o Employer header record; o Employer and financial information records for all tax certificates (including

Employment Tax Incentive (ETI) information); and o Employer totals trailer record.

Each CSV file may only contain tax certificate information for a single employer (no multiple employer records will be accepted if it is contained in a CSV file).

The CSV file format should start with the code, followed by the data for the relevant code, followed by the next code, etc. for example: Code,data,code,data,code,data,code,data,9999 o The first code of the record may not be preceded by any character (e.g.

space, comma, etc.); o The last code of the record must be 9999 and may not be followed by any

character (e.g. space, comma, etc.). All Alpha, Alphanumeric and Free Text fields must be contained in opening and

closing quotation marks (e.g. the surname Horn must be shown as 3020,”Horn”.

Employees’ Income Tax certificates:

The certificate must consist of the following: o The employee’s personal information;the employee’s financial information o Employment Tax Incentive (ETI) information pertaining to the employee, if

any. The tax certificate number must be unique per employer:

o the same certificate number may not be used more than once by an employer; and

o may not be duplicated in either the current, past or future years of assessments by the employer.

Income source codes are restricted to a maximum of 20 and the deduction codes are restricted to a maximum of 12.

Local and foreign income source codes may be completed on the same certificate for a specific employee.

At least one income source code with a value greater than zero must be completed. However, if it is a director of a private company or a member of a close corporation where the remuneration cannot be determined at the end of the tax period, the source code 3615 may be reported with a zero value.

No negative values are accepted. Cents of all amounts must be dropped off/omitted (rounded down), except for the

fields containing the tax, SDL and UIF amounts where the cents must be specified even if it is zero.

The following codes may only appear once on a certificate: o All the employer information codes o All the employee information codes, excluding code 3230 o All Tax Certificate Information codes representing financial information

excluding the following codes: Income Received Codes: 3601 to 3922 and 3651 to 3957 Deduction/Contribution codes: 4001 to 4007, and Employment Tax Incentive Information codes: 7002 to 7004, 7006 and

7007. Code 3230 (directive number) may appear up to three times on a certificate.

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All income and deduction fields that have a zero value must not be reported except

for: o Code 3615; o Codes 3697;3698;2699 o Code 3240; o Code 4005; o Codes 4115; 4116; 4118 o Code 4120; 4141;4142 o Code 7002, 7003; 7004 o Code 6030.

All cents for Rands must be dropped off with the exception of the following – o 4101, 4102, o 4115, 4116, 4118 o 4120 o 4141, 4142, 4149, o 6030, 7002, 7003 and 7004 where the Rand value including the cents must be specified (even if it is zero).

4 ERROR REPORTS

An error report will be provided by e@syFileTM

when uploading a CSV file on the software. This error report will indicate all the errors that were found when the data of the file was validated.

Error messages: The file will be rejected if any error message is displayed. An error message indicates to an employer that the data for the relevant field does not comply with the validation rule and must be corrected before the submission can be accepted by SARS.

5 2017 VALIDATION RULES

The validations rules to fields only applicable on CSV files will be specifically indicated. Fields not specifically indicated apply to both the field on the CSV file as well as the field on the Employees’ Income Tax certificate.

Important: The updating of the description of certain codes, introduction of new codes and re-activation of codes previously de-activated for certificate reporting purposes are effective from 1 March 2012 onwards.

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5.1 EMPLOYER HEADER RECORD VALIDATION RULES Code Field name Validation rules

2010 Trading or other name The trading or other name of the employer issuing the certificate.

Field layout:

FT90: Free text field with a field length of 90 characters.

Validation rules:

Mandatory field. First code of record of the electronic file and

may not be preceded by any other character (e.g. space, comma, etc.)

2015 Test/Live indicator The indication that identifies the submission as a test or live submission.

Field layout:

A4: Alpha field with a field length of 4 fixed characters.

Validation rules:

Mandatory field; Value may only be TEST or LIVE; Value must be LIVE if any certificate type is

ITREG.

2020 PAYE reference number The PAYE reference number if the employer is registered for Employees’ Tax purposes (number under which PAYE is paid to SARS). Alternatively if the employer is not registered for PAYE it will be the Income Tax reference number of the employer.

Field layout:

N10: Numeric field with a field length of 10 fixed characters.

Validation rules:

Mandatory field; Number must start with a 7 if the employee

is registered for Employees’ Tax purposes; Number must start with a 0, 1, 2, 3 or 9 if

the employer is not registered for Employees’ Tax purposes;

Number must start with 7 if the employer is registered for Employees’ Tax purposes;

Invalid if code 3015 is IRP5 and this number does not start with a 7;

Invalid if code 4101, 4102 and/or 4115 has a value and this number does not start with a 7;

Must be a valid reference number (apply modulus 10 test).

2022 SDL reference number The SDL reference number if the employer is registered for SDL purposes (number under which SDL is paid to SARS).

Field layout:

AN10: Alphanumeric field with a field length of 10 fixed characters.

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Code Field name Validation rules

Validation rules:

Mandatory field if registered for SDL or if any value is completed against code 4142;

Number must start with a L; Must consist of 1 alpha followed by 9

numerical characters; Last nine digits of this number must be the

same as the PAYE reference number if the PAYE reference number starts with 7;

Last nine digits of this number must be the same as the UIF reference number if the UIF reference is completed;


2024 UIF reference number The UIF reference number if the employer is registered for UIF purposes at SARS (number under which UIF is paid to SARS).

Field layout:

AN10: Alphanumeric field with a field length of 10 fixed characters.

Validation rules:

Mandatory field if registered for UIF or if any value is completed against code 4141;

Number must start with a U; Must consist of 1 alpha followed by 9

numerical characters; Mandatory field if registered for UIF or if

any value is completed against code 4141; Last nine digits of this number must be the

same as the PAYE reference number if the PAYE reference number starts with 7;

Last nine digits of this number must be the same as the SDL reference number if the SDL reference is completed;


2025 Employer contact person The full name and surname of the contact person for reconciliation related queries (only applicable to CSV files).

Field layout:

A30: Alpha field with a field length of 30 characters.

Validation rules:

Mandatory field.

2026 Employer contact number The contact number of the person that has been entered for code 2025 (only applicable to CSV files).

Field layout:

AN11: Alphanumeric field with a field length of 11 characters.

Validation rules:

Mandatory field; Only numeric values allowed; No spaces are allowed;

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Plus sign (+) is not allowed; Must consist of at least 9 characters.

2027 Employer e-mail address The e-mail address of the employer (only applicable to CSV files).

Field layout:


Validation rules:

Optional field; Address must contain an @ sign and a

domain which must be indicated with a dot.

2028 Payroll software The payroll software package which is being used by the employer or the word “in-house” in cases where if no commercial software package is used (only applicable to CSV files).

Field layout:


Validation rules:

Optional field. If you are not using a commercial software

package the word “In-house” may be used

2030 Transaction year The tax year during which the employer deducted and paid Employees’ Tax in respect of the remuneration paid of payable to an employee.

Field layout:

N4: Numeric field with a field length of 4 fixed characters;

Format is: CCYY. Validation rules:

Mandatory field if certificate type (code 3015) is not ITREG;

Cannot be less than 1999; Cannot be greater than the current calendar

year plus one Must not be completed if the value for code

3015 (certificate type) is ITREG.

2031 Period of reconciliation The submission period to which the reconciliation declaration relates.

Field layout:


Format is: CCYYMM. Validation rules:

Mandatory field if the code 2030 (transaction year) is greater than 2010;

Must not be completed if the value for code 3015 (certificate type) is ITREG;

Must be a valid period in the transaction year;

If the transaction year is 2011 and the reconciliation relates to the submission for August 2010, the value should be indicated

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as 201008; If the transaction year is 2011 and the

reconciliation relates to the submission for February 2011, the values should be indicated as 201102.

2082 The Employer Standard Industry Classification Code (SIC7)

To indicate the Employer SIC7 Code relating to the ETI benefits.

Field layout:

AN5: Alphanumeric field with a field length of 5 characters

only valid from 201402 Period of Reconciliation

Validation rules:

Mandatory field.

2083 The Employer’s Special Economic Zone Code (SEZ)

To indicate the Employer SEZ Code relating to the ETI benefits.

Field layout: AN3: Alpha field with a field length of 5

characters only valid from 201402 Period of

Reconciliation Validation rules:

Optional field.

2035 Employer trade classification

The activity code applicable to the employer’s business according to the VAT403 Trade Classification guide (only applicable to CSV files).

Field layout:


Validation rules:

Mandatory field in respect of submissions after 31 July 2010.

2061 Employer physical address: Unit number

The unit number of the physical address of the employer (only applicable to CSV files).

Field layout:


Validation rules:

Optional field.

2062 Employer physical address: Complex

The complex name of the physical address of the employer .

Field layout:


Validation rules:

Optional field.

2063 Employer physical address: Street number

The street number of the physical address of the employer .

Field layout:

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Validation rules:

Optional field.

2064 Employer physical address: Street/farm name

The street name or farm name of the physical address of the employer .

Field layout:


Validation rules:

Mandatory field.

2065 Employer physical address: Suburb/District

The suburb or district of the physical address of the employer .

Field layout:


Validation rules:

Conditional field either the suburb/district field or city/town must be completed.

2066 Employer physical address: City/Town

The city or town of the physical address of the employer .

Field layout:


Validation rules:

Conditional field either the suburb/district field or city/town is completed.

2080 Employer physical address: Postal code

. Validation rules:

Mandatory field; Fixed length; Must be a valid RSA postal code (0000 will

be rejected as invalid) eg must be captured as ‘0040’ not “40” (“40” will be rejected);

Only numerical characters (0 – 9) are allowed.

2081 Employer physical address: Country code

Mandatory

Defaults to ZA

9999 End of Employers’ record Indicates the end of the record. Field Layouts:


Validation rules:

Mandatory field; Fixed code; Last code of electronic record and it may

not be followed by any other character (e.g. space, comma, etc.)

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5.2 EMPLOYEE INFORMATION RECORD VALIDATION RULES Code Field name Validation rules

3010 Certificate number The unique certificate number allocated by the employer to certificates issued to employees’.

Field layout:

AN30: Alphanumeric field with a field length of 30 fixed characters;

Format of number must be as follows: o First 10 digits must be the same as

the value for code 2020 (PAYE or income tax reference number);

o Followed by the value for code 2030 (transaction year);

o Followed by the concluding calendar year month.

Note:

If the reconciliation is for the period up to February, 02 must be used and if the reconciliation is for the period up to August, 08 must be used;

The last 14 digits must be a unique combination of alpha and numeric numbers allocated by the employer.

Note:

Should all 14 digits not be used, left padding with zeros after the period must be applied (e.g. if the first 16 digits is 7210712345201002 and the unique number is 52214, it must be completed as 721071234520100200000000052214).

Validation rules:

Mandatory field; Must be an unique number per employee

and may never be reused in any prior, current or future transaction year (unless it replace a certificate with the same number);

May not include a dash (-), space ( ), apostrophe (‘), comma (,) or characters such as ê, ë, etc;

Must not be completed if the value for code 3015 (certificate type) is ITREG.

Note: In respect of submissions before 1 August 2010:

If the certificate number consist of only 8 digits, the e@syFile

TM software will display

a warning message and update the certificate number automatically;

If the value for code 3015 (certificate type) is ITREG, the e@syFile

TM software will

store the certificate number automatically as the ID or passport number and fill the rest of the field with zeros (this is required for tracking purposes as the certificate number is part of the minimum data).

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3015 Type of certificate Indication of the type of certificate. Field layout:


Validation rules:

Mandatory field; If IRP5 is indicated either code 4101,4102

or 4115 must have a value greater than zero and code 4150 must not be included;

If IT3(a) is indicated, code 4150 must have a value and code 4101,4102 and 4115 must not be included;

Must be a valid value (can only be: IRP5, IT3(a) or ITREG);

IRP5 cannot be indicated if the PAYE number starts with 0,1,2,3 or 9.

3020 Nature of person The nature of person applicable to the employee (refer to the definition).

Field layout:

A1: Alpha field with a field length of 1 fixed character.

Validation rules:

Mandatory field; Must be a valid value (can only be: A, B, C,

D, E, G, H or N); If Type of Certificate is ITREG, the Nature

of a person must be A, B, C, M, N or R.

3025 Year of assessment The tax year during which the remuneration was paid or become payable (accrued) to the employee.

Field layout:


Format is: CCYY. Validation rules:

Mandatory field; Cannot be less than 1999. Where year of

assessment is less than 1999, the certificate must be included in the 1999 reconciliation – reconciliations prior to this date may not be accepted;

Cannot be greater than the current calendar year plus one;

Cannot be greater than the value for code 2030 (transaction year);

Must not be completed if the value for code 3015 (certificate type) is ITREG.

3026 ETI (Employment Tax Incentive) Indicator.

Conditional - must only be completed if type of certificate (code 3015) is IRP5 or IT3(a) and Year of Assessment (code 3025) is 2014 or later and period of reconciliation (code 2031) is 201402 or later.

If the condition specified above is met then the value can only be Y (Yes) or N (No).

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Note: Must not be reported on the certificate that will be issued to the employee.

3030 Employee surname or trading name

The surname of the employee if the nature of person is A, B, C, M, N or R and the trading name of the employee if the nature of person is a D, E, G or H.

Field layout:


Validation rules:

Mandatory field; Numeric characters are not allowed if the

nature of person is A, B, C, N or R If the nature of person is A, B, C, N or R

enter the surname of the individual If the nature of person is D, E, G or H the

trading name of the trust/company/partnership or corporation must be entered.

3040 First two names The first two names of the employee (if individual). Field layout:


Validation rules:

Mandatory field if nature of person is A, B, C, M, N or R;

Mandatory field if the initials (code 3050), date of birth (code 3080), identify number (code 3060) or passport number (code 3070) is completed;

Numeric characters are not allowed; Will be rejected if supplied with nature of

person D, E, G or H.

3050 Initials The initials of the employee (if individual). Field layout:

A5: Alpha field with a field length of 5 characters.

Validation rules:

Mandatory field if nature if person is person is A, B, C, N or R.

Mandatory field if the date of birth (code 3080) or identify number (code 3060) is completed;

Only characters A to Z may be used; May not include a full stop (.), dash (-),

space ( ), apostrophe (‘), comma (,) or characters such as ê, ë, etc.

Will be rejected if supplied with nature of person D, E, G or H.

3060 Identity number Note: Old non-barcoded ID numbers and Refugee ID numbers must be populated in this field.

The South African identity number of the employee (if individual).

Field layout:

N13: Numeric field with a field length of 13

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fixed characters. Validation rules:

Mandatory field if the nature of person is A or C and passport number is not completed.

Mandatory if the nature of a person is R and optional if the nature of a person is N.

Invalid and will be rejected if supplied with nature of person B, D, E, F,G,H or M.

Must correlate with the date of birth completed;

Must be a valid South African identity number (other numbers must be completed in the passport number field);

Must correlate with the date of birth.

3070 Foreign Passport number Foreign passport number of the employee (if individual).

Field layout:


Validation rules:

Mandatory field if the nature of person is A, C; and identity number is not completed and optional field if the nature of person is N, M or R.

Must consist of at least 6 characters; Invalid and will be rejected if supplied with

nature of person B, D, E,F, G or H; No spaces are allowed; Country of issue must be completed.

3075 Country of issue The country that issued the passport (if individual). Field layout:

A3: Alphanumeric field with a field length of 3 fixed characters.

Validation rules:

Mandatory field if the passport number (code 3070) is completed;

Must be a valid value (refer to the list for the country of issue codes);

Invalid and will be rejected if supplied with nature of person D, E, G or H.

Country of issue may not be ZAF.

3080 Date of birth The date of birth of the employee (if individual. Field layout:

N8: Numeric field with a field length of 8 fixed characters

Format is: CCYYMMDD. Validation rules:

Mandatory field if the person is person is A, B, C, M, N, or R;

Must correlate with the identity number (if any)

Date cannot be greater than the current date;

Invalid and will be rejected if supplied with nature of person D, E, G or H.

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3100 Income tax reference number

The income tax reference number of the employee.

Field layout:


Validation rules:

Mandatory field in respect of submissions after 31 July 2010 and optional field if the code 3015 (certificate type) is ITREG;

Number must start with 0, 1, 2 or 3 if the nature of person is A, B, C, D, M, N, or R;

Number must start with 9 if the nature of person is E, G or H;

Invalid and will be rejected if supplied with nature of person F;

Must be a valid number (apply modulus 10 test).

If type of certificate is ITREG, this filed is optional for verification purposes.

3263 The Employer Standard Industry Classification Code (SIC7)

To indicate the Standard Industrial Classification (SIC Coder v7, as defined on the Statistic SA Website: www.statssa.gov.za) relating to the ETI Benefits.

Field layout: AN5: Alphanumeric field with a field length

of 5 characters. Use the 5-digit sub-class If the certificate type is ITREG this field

must not be completed. Validation rules:

Mandatory if the nature of the person is not “N’ and the Period of Reconciliation is 201402 or later.

Only numeric values allowed.

3264 The Employer’s Special Economic Zone Code (SEZ)

To indicate the Employer SEZ Code relating to the ETI benefits.

Field layout: AN3: Alpha field with a field length of 5

characters If the certificate type is ITREG this field

must not be completed. .

Validation rules:

Optional field.

3125 Employee e-mail The e-mail address of the employee. Field layout:


Validation rules:

Optional field; Address must contain a @ sign and a

domain which must be indicated with a dot .

http://www.statssa.gov.za/

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3135 Employee’s home telephone number

The home telephone number of the employees. Field layout:


Validation rules:

Optional field; Only numeric values allowed; No spaces are allowed; Plus sign (+) is not allowed; Must consist of at least 9 characters.

3136 Employee’s business telephone number

The business telephone number of the employees.

Field layout:


Validation rules:

Mandatory field if nature of person is not N; Only numeric values allowed; No spaces are allowed; Plus sign (+) is not allowed; Must consist of at least 9 characters.

3137 Employee’s fax number The fax number of the employees. Field layout:


Validation rules:

Optional field; Only numeric values allowed; No spaces are allowed; Plus sign (+) is not allowed; Must consist of at least 9 characters.

3138 Employee’s cellular number

The cellular number of the employees. Field layout:

The field must at least have 10 digit

number. Validation rules:

Optional field; Only numeric values allowed; No spaces are allowed; Plus sign (+) is not allowed.

3144 Employee’s physical work business address: Unit number

The unit number of the e address where the employee mainly works.

Field layout:


Validation rules:

Optional field.

3145 Employee’s physical work business address: Complex

The complex name of the address where the employee mainly works.

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Field layout: FT26: Free text field with a field length of

26 characters. Validation rules:

Optional field.

3146 Employee’s physical work business address: Street number

The street number of the address where the employee mainly works.

Field layout:


Validation rules:

Optional field.

3147 Employee’s physical work business address: Street/farm name

The street name or farm name of the address where the employee mainly works.

Field layout:


Validation rules:

Mandatory if the nature of person is not N.

3148 Employee’s physical work business address: Suburb/District

The suburb or district of the address where the employee mainly works.

Field layout:


Validation rules:

Conditional field either the suburb/district field or city/town field must be completed, if the nature of person in not N.

3149 Employee’s physical work business address: City/Town

The city or town of the address where the employee mainly works.

Field layout:


Validation rules:

Conditional field either the suburb/district field or city/town field must be completed, if the nature of person in not N.

3150 Employee’s physical work business address: Postal code

The postal code of the address where the employee mainly works.

Field layout:


Validation rules: Conditional If field Employee Physical Work Address

Details – Country Code (code 3151) is ZA and the nature of a person is not N, then this field is mandatory, must consists of the following – o Must consists of 4 numeric

characters(e.g. 0040 must be written on

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the import file as “0040” not as “40” o Must not be “0000”

If field Employee Physical Work Address Details – Country Code (code 3151) is not ZA, then this field is optional.

If the nature of a person is N, then the field is optional.

3160 Employee’s payroll number

The unique payroll number of the employee which the employer allocated to identify his/her employees.

Field layout:

FT25: Alphanumeric field with a field length of 25 characters.

Validation rules:

Mandatory field for nature of person B, and N.

Optional for nature of person A, C, D, E, F, G,H, M and R.

3170 Period employed from The first day of the Employees’ Tax period in the specific year of assessment (normally the first day of the tax year or the first day the employee starts working for the employer in that tax year if the employee was not employed on 1 March).

Field layout:

N8: Numeric field with a field length of 8 fixed characters


Mandatory field; Must be in the format CCYYMMDD Must be a valid date and cannot later than

the current date; Cannot be later than the date completed in

the “period employed to” field (code 3180); Invalid and will be rejected if the code 3015

(certificate type) is ITREG; A date falling in a previous tax year may

only be completed if it relates to a lump sum payment that accrued to the employee in the previous tax year (tax year of the certificate must still be indicated as the tax year during which the tax was paid over to SARS).

3180 Period employed to The last day of the Employees’ Tax period in the specific year of assessment (normally the last day of the tax year or the last day the employee worked for the employer in that specific tax year if the employee was not employed on 28 February).

Field layout:



Mandatory field; Must be in the format: CCYYMMDD;

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Must be a valid date and cannot later than the current date plus 30 days;

Cannot be earlier than the date completed in the “period employed from” field (code 3170);

Invalid and will be rejected if the code 3015 (certificate type) is ITREG;

A date falling in a previous tax year may only be completed if it relates to a lump sum payment that accrued to the employee in the previous tax year (tax year of the certificate must still be indicated as the tax year during which the tax was paid over to SARS).

3200 Pay periods in a year of assessment

The number of pay periods in which the employer has divided his tax year into (e.g. intervals at which the employee is remunerated), for example: 52 or 53 pay periods if the employee is

weekly remunerated; 26 pay periods if the employee is fortnightly

remunerated; 12 pay periods if the employee is monthly

remunerated; 365 pay periods if the employee is daily

remunerated. Field layout:

N3.4: Numeric field with a field length of 3.4 (fixed decimals).

Validation rules:

Mandatory field ; If the certificate type is ITREG, this field

must not be completed Must have a decimal point and 4 digits after

the decimal point even if the decimal value is zero;

Cannot be less than the value completed for “pay periods worked” (code 3210);

May be completed as 1.0000 if it relates to a lump sum payment which is the only income completed on the certificate.

Number of equal pay periods the employer divided his/her tax year into and is normally determined according to intervals the employees’ are remunerated e.g. o Weekly o Fortnightly o Monthly o Daily paid employees.

If the certificate type is ITREG this field must not be completed.

3210 Pay periods worked The number of pay periods (indicated in code 3200) of which the employee was actually employed by the employer for the year of assessment.

Field layout:

N3.4: Numeric field with a field length of 3.4 (fixed decimals).

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Validation rules: Mandatory field; Number of equal pay periods the employee

has worked in the year of assessment (pay periods worked which is shorter than a full pay period must be indicated as a decimal fraction of such pay period).


Must have a decimal point and 4 digits after the decimal point even if the decimal value is zero;

Cannot be greater than the value completed for “pay periods in tax year” (code 3200);

May be completed as 1.0000 if it relates to a lump sum payment which is the only income completed on the certificate.

3211 Employee’s residential address: Unit number

The unit number of the residential address of the employee:

Field layout:


Validation rules:

Optional field.

3212 Employee’s residential address: Complex

The complex name of the residential address of the employee:

Field layout:


Validation rules:

Optional field.

3213 Employee’s residential address: Street number

The street number of the residential address of the employee:

Field layout:


Validation rules:

Optional field.

3214 Employee’s residential address: Street/farm name

The street name or farm name of the residential address of the employee.

Field layout:


Validation rules:

Mandatory field.

3215 Employee’s residential address: Suburb/District

The suburb or district of the residential address of the employee:

Field layout:


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Validation rules: Conditional field, either the suburb/district

field (Code 3215) or the city/town field (Code 3216) must be completed.

3216 Employee’s residential address: City/Town

The city or town of the residential address of the employee:

Field layout:


Validation rules:

Conditional field, either the suburb/district field (Code 3215) or the city/town field (Code 3216) must be completed.

3217 Employee’s residential address: Postal code

The postal code of the residential address of the employee:

Field layout:

AN9: Alphanumeric field with a field length of 9 characters

If South African Address, 4 numeric characters must be supplied, (e.g. ‘0040’ must be captured on the CSV file as “0040” and not as “40”).

If International Address, capture “0000” or supply the international postal code.

Validation rules:

Mandatory field; The postal code of the nearest town/city

must be used in cases where no postal code exists for the specific residential city/town

3249 Employee’s postal address details - PO Box or Private Bag indicator.

Indicates whether the employee’s postal address is a PO Box or Private Bag address

Field layout:

A1: Alpha field with a field length of 1 character.

Validation rules:

Either “P O Box or Private Bag” (Code 3249) or “Other

P O Special Service “ (Code 3280) must be completed. Must not be completed if field “Address is a

Street Address” (Code 3247) is “Y” Value can only be ”P O Box” or “Private

Bag”.

3251 Complete Employee’s postal agency or sub-unit (if applicable) e.g. Postnet Suite ID

Indicates the unit employee’s postal agency or sub-unit number (e.g. Postnet Suite ID, with or without a Private Bag)

Field layout:


Validation rules: Optional

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Note: This field must be completed with the

Postal Agency / Sub Unit name together with the Postal Agency / Sub Unit number, e.g. Postnet Suite 12345.

3280 Employee’s other (PO) special service (specify)

Indicated the employee’s other special postal services (e.g. Military field service address).

Field layout:


Validation rules: Conditional - If Address is a Street Address

(Code 3247) is “N” either “Employee Postal Address Details, PO Box” (Code 3249) or “Employee Postal Address Details, Private Bag” (Code 3250) or “Other PO Special Service” (Code 3280) must be completed

Must not be completed if field “Address is a Street Address” (Code 3247) is “Y”.

3253 Employee’s postal address details: Post Office

Indicates the name of the post office branch of employee’s postal address

Field layout:


Validation rules:

Mandatory. 3254 Employee’s address

details: Postal Code Indicates the postal code of the postal address of

the employee. Field layout:


Validation rules: Conditional If field “Employee Postal Address Details

Country Code” (Code 3286) is ZA and Nature of a Person is not N, then this field is mandatory.

Must consists of 4 numeric characters (e.g. ‘0040’ must be written on the import file as ‘0040’ and not as ‘40’).

Must not be “0000”. If field “Employee Postal Address Details

Code” (Code 3286) is not ZA, then this field is optional

If the Nature of a Person is N, then this field is optional.

3262 Employee’s postal address number

Indicates a number for the P.O. Box or Private Bag.

Field layout:


Validation rules:

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Mandatory if field 3249 or 3250 is marked with an X.

3255 Employee’s Postal Address Details : Unit number

Indicates the postal unit of the Employee’s postal address

Field layout:


Validation rules:

Optional field

3256 Employee’s address details: Postal Complex

Indicates the postal complex of the Employee’s postal address

Field layout:


Validation rules:

Optional field.

3257 Employee’s address details: Postal Street Address

Indicates the postal street address of the employee’s postal address

Field layout:


Validation rules:

Optional field.

3258 Employee’s address details: Street/name of farm

Indicates the street/name of farm of the employee’s postal address

Field layout:


Validation rules:

Mandatory field.

3259 Employee’s address details: Suburb/District

Indicates the suburb/district of the employee’s postal address

Field layout:


Validation rules:

Conditional Either the Suburb/District field (Code 3259)

or the City/Town (Code 3260) field must be completed

3260 Employee’s address details: City/Town

Indicates the city/town of the employee’s’postal address

Field layout:


Validation rules:

Conditional Either the Suburb/District field (Code 3259) or the City/Town (Code 3260) field must be completed

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3261 Employee’s address details: Postal code

Indicates the postal code of the employee’s postal address

Field layout:


Validation rules:

If field “Employee Postal Address Details Country Code” (code 3287) is ZA and the nature of a person is not N, then this field is mandatory.

Must consists of 4 numeric characters (e.g. ‘0040’ must be written on the import file as ‘0040’ and not as ‘40’).

Must not be “0000”

3279 Employee’s postal address C/O

Indicates the employees’ postal address is a C/O (Care of) postal address.

Field layout:

A1: Alpha field with a field length of 1 character.

Validation rules: Mandatory field. The value can only be Y

(Yes) and N (No).

3230 Directive number The number of the tax directive issued by SARS in respect of the employee.

Field layout:


Validation rules:

Mandatory field if a value for code 3608, 3614, 3707, 3757, 3718, 3768, 3901, 3902, 3903, 3904, 3905, 3915, 3920 or 3921 and/or 3922 is completed;

This code may be repeated up to a maximum of 3 times.

Note:

Where more than one directive was issued in respect of the employee during the year of assessment, the code must be repeated for each directive number, for example: code, directive no 1, code, directive no 2, code, directive no 3;

Invalid if the certificate type (code 3015) is ITREG.

Note:

Optional field in respect of submissions before 1 August 2010, but the validation rules will apply if the field is completed.

3240 Employee’s bank account: Type

The type of bank account of the employee (refer to the definition).

Field layout:

N1: Numeric field with a field length of 1

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fixed character. Validation rules:

Mandatory field; Value may only be: 0, 1, 2, 3, 4, 5, 6 or 7. If not paid by electronic bank transfer (0) or

foreign bank account (7) is selected, and then all remaining fields in the bank account details section are no longer mandatory.

3241 Employee’s bank account: Number

The bank account number of the employee: Field layout:

N16: Numeric field with a field length of 16 characters.

Validation rules:

Mandatory field if the value for bank account type (code 3240) is not 0 or 7.

Only numeric values allowed The code and the value must not be

generated if code 3240 is 0 or 7.

3242 Employee’s bank account: Bank Branch number

The branch number of the bank relating to the bank account of the employee:

Field layout:


Validation rules:

Mandatory field if the value for bank account type (code 3240) is not 0 or 7.

The code and the value must not be generated if code 3240 is 0 or 7.

3243 Employee’s bank account: Bank name

The name of the bank relating to the bank account of the employees’.

Field layout:


Validation rules:

Optional field; The code and the value must not be


3244 Employees’ bank account: Bank branch name

The name of the bank branch relating to the bank account of the employees’.

Field layout:


Validation rules:

Optional field; The code and the value must not be

generated if code 3240 is 0 or 7

3245 Employees’ bank account: Account holder name

The account holder name relating to the bank account of the employees’.

Field layout:


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Validation rules:

Mandatory field if the value for bank account type (code 3240) is not 0 or 7;

The code and the value must not be generated if code 3240 is 0 or 7.

3246 Employees’ bank account: Account holder relationship

The relationship of the employee with the account holder relating to the bank account of the employees’ (refer to definition).

Field layout:

N1: Numeric field with a field length of 1 fixed character.

Validation rules:

Mandatory field if employees’ salary is paid into a bank account;

Value may only be: 1, 2 or 3; The code and the value must not be


3287 Employee Postal Address Details Country Code

Indicates the country code of Employee’s postal address

Validation Rules:

Mandatory if the field “Address is a Street Address” (Code 3247) is “N”

Must not be completed if field “Address is a

Street Address” (Code 3247) is “Y”. 9999 End of Employees’ record Indicates the end of the record.

Field Layout:


Validation rules:

Mandatory field; Fixed code; Last code of electronic record and it may


EXTERNAL GUIDE



PAYE-AE-06-G07


5.3 EMPLOYEE FINANCIAL INFORMATION RECORD VALIDATION RULES


3601/3651 3602/3652 3603/3653 3605/3655 3606/3656 3608/3658 3610/3660 3611/3661 3613/3663 3614/3664 3615/3665 3616/3666 3617/3667 3618/3668 3619/3669 3701/3751 3702/3752 3703/3753 3704/3754 3707/3757 3708/3758 3713/3763 3714/3464 3715/3465 3717/3767 3718/3768 3801/3851 3802/3852 3805/3855 3805/3855 3808/3858 3809/3859 3810/3860 3813/3863 3815/3865 3816/3866 3817/3867 3819/3869 3820/3870 3821/3871 3822/3872 3825/3875 3828/3878 3901/3951 3906/3956 3907/3957 3908/3909 3915/3920 3921/3922

Income codes This includes all remuneration paid/payable to the employee by the employer and must be specified as per the “list of codes” allocated to each source. The description of the codes must not be included in the electronic CSV files

Field layout:


Validation rules:

Mandatory field (at least one income code must be completed with a value);

Value must be greater than zero with the exception of code 3615 which may have a zero value;

Cents must be omitted (decimal in amount is invalid);

Invalid if the certificate type (code 3015) is ITREG;

No negative amounts are allowed and will be rejected if completed;

May not exceed a maximum of 13 codes per certificate;

The value for code 3810/3860 must be less than the value for code 4474 if the year of assessment is 2007, 2008, 2009 or 2010;

must be equal to the value for code 4474 if the year of assessment is greater than 2010;

The value for code 3813/3863 must be equal or greater than the value for code 4024;

Code 3915, 3920, 3921 and/or 3922 is mandatory if a value for code 4115 is completed;

Code 3615/3665 is invalid if the nature of person is not C;

Code 3810/3860 is invalid if a value is completed for code 4493;

Code must be valid for the specific year of assessment: o Codes invalid after 2009:

3604, 3654, 3607, 3657, 3609, 3659, 3612, 3662, 3705, 3755, 3706, 3756, 3709, 3759, 3710, 3760, 3711, 3761, 3712, 3762, 3716, 3766, 3803, 3853, 3804, 3854, 3807, 3857, 3902, 3952, 3904 and 3954

o Codes are valid from 1999 to 2009 and from 2013 3603, 3653, 3610, 3660, 3815,

3865, 3806, 3856, 3808, 3858, 3809, 3859

o Code is applicable from 2001 year of assessment 3613, 3663

o Code is applicable from 2002 year of assessment

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3614 o Code is applicable from 2003 year of

assessment 3615, 3665

o Code is applicable from 2004 year of assessment 3616, 3666 and 3617

o Code is applicable from 2015 year of assessment 3618 and 3668


o Code is applicable from 2005 year of assessment 3715, 3765, 3716, 3766, 3717,

3767, 3718 and 3768 o Code is applicable from 2007 year of

assessment 3813, 3863, 3909 and 3915

o Code is applicable from 2013 year of assessment 3815, 3865

o Code is applicable from 2014 year of assessment 3816, 3866, 3820, 3821, 3870

and 3871 o Code is applicable from 2015 year of

assessment 3817, 3818, 3819, 3822, 3867,

3868, 3869 and 3872 o Code is applicable from 2017 year of

assessment 3825/3875

o Code is applicable from 2017 year of assessment 3828/3878

o Code is applicable from 2009 year of assessment 3903, 3953, 3905 and 3955 Code is applicable from 2006 year of assessment 3908

o Code is applicable from 2007 year of assessment 3909




Invalid and will be rejected if the code 3015 (certificate type) is ITREG.

Note:

Code 3702 may not be reflected on an IRP5/IT3(a) together with code 3701

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and/or 3702 from the 2014 year of assessment. The value of code 3702 must be included in the value of code 3701;

The value of code 3703 may not exceed the value determined by multiplying 8000 kilometres with the prescribed rate per kilometre applicable to the relevant year of assessment (i.e. par 4 of the fixed rate per kilometre i.r.o. motor vehicles). If the 3703 value exceeds the prescribed rate per km x 8000 km, then the 3703 value must be added to 3702.

3696 3697 3698 3699

Gross remuneration amounts

The gross remuneration totals of the income amounts completed on the certificate.

Field layout:


Validation rules:

Code 3696 (Gross non-taxable income) o Mandatory if values are completed

under code 3602/3652, 3703/3753, 3714/3764, 3815/3865, 3908, 3922(Excl);

o 3922 (Excl) to be added under this code only if he value does not exceed R300, 000;

o Value must be equal to the sum total of all the values completed under codes code 3602/3652, 3703/3753, 3714/3764, 3815/3865, 3908, 3922(Excl).

o No negative amounts are allowed and will be rejected if specified.

o Cents must be omitted (decimal amount is invalid).

o The mounts indicated under this code must be excluded from 3697 and 3698.

o 3696 plus 3697 plus 3698 must be equal to the amounts supplied under income.

o If the certificate type is ITREG this field must not be completed.

Code 3697 (Gross retirement funding income) o Mandatory field if no value is

indicated under code 3696 or 3698. Where code 3615/3665 is “)” and no other income codes are specified, value must be nil.

o No negative amounts are allowed and will be rejected if specified.

o Cents must be omitted (decimal amount is invalid).


o If the certificate type is ITREG this field must not be completed.

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Code 3698 (Gross non-retirement funding income) o Mandatory if no values is completed

for code 3696 or 3697; o Where code 3615/3665 is “0” and no

other income codes are specified, value must be nil.

o No negative amounts are allowed and will be rejected if specified;

o Cents must be omitted (decimal in amount is invalid);

o If 3922 (PAYE) value exceeds R 300,000 and is non-retirement funding income, the full amount must be included under this code;

o Invalid and will be rejected if the code 3015 (certificate type) is ITREG;


o If the certificate type is ITREG this field must not be completed;

o Code 3695 is invalid for years of assessment after 2009

o Each of these codes may only be used once per certificate.

Code 3699

o Invalid from 2010 to 2016 years of assessment.

4001 4002 4003 4005 4006 4007 4018 4024 4026 4030 4472 4473 4474 4475 4493

Deductions / contributions

The deductions which were deducted from the Employees’ remuneration as well as the information relating to employer contributions or values applied.

Field layout:


Validation rules:

Mandatory field if deductions/contributions in respect of any of these codes were made;



No negative amounts are allowed and will be rejected if specified;

May not exceed a maximum of 7 codes per certificate;

The value for code 4024 may not be greater than the sum of the values for codes 3813 and 3863;

Code 4005 and 4474 is mandatory for years of assessment after 2006 if an amount is specified for code 3810/3860;

Code 4005 can have a value of 0 if valid 3230 (Directive number) specified;

Codes 4002, 4007 and 4018 are not applicable with effect from the 2016 year of assessment;

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Codes 4472, 4473 and 4475 are valid from 1999 to 2009 years of assessments and from the 2016 year of assessment;

Code 4474 is invalid if a value is specified for code 4493

As of 1 March 2012 the contributions paid by an employer on behalf of an employee 65 years and older and who has not retired from that employer, should also be reflected under this code;

Code must be valid for the specific year of assessment: o Codes invalid prior to 2006:

4018 and 4474 o Codes invalid prior to 2007:

4024, 4026 and 4485 o Codes invalid prior to 2008:

4493 o Codes invalid prior to 2010:

4030 o Codes invalid after 2009:

4004, 4025, 4472, 4473, 4485, 4486 and 4487

o Codes applicable from 2017 4472, 4473, 4475 and 4582


4497 Total deductions/contributions

The total of all the deductions and contributions specified under the 40- and 44- codes.

Field layout:


Validation rules:

Mandatory field if a 40- or 44- code is completed;


Invalid if the certificate type (code 3015) is ITREG;

No negative amounts are allowed and will be rejected if completed;

Must be equal to the sum of all values completed under the 40- and 44- codes;


4101 4102 4115 4116 4118 4141 4142 4120

Tax, SDL and UIF deductions

The Employees’ Tax deductions as well as the UIF contributions and SDL levy.

Field layout:

N11.2: Numeric field with a field length of 11.2 characters (fixed decimals).

Validation rules:

Code 4101 is mandatory if no value has been completed for code 4102, 4115 and 4150;


EXTERNAL GUIDE



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Code 4115 is mandatory if a value has been completed for code 3915, 3920, 3921 and/or 3922;

Code 4116 may only be used if type of certificate (code 3025) is IRP5 or IT3(a);

May only be completed if nature of person (3020) is A, B, C or N;

Value can be 0; Code 4116 must not be completed if there

is no value for Medical Scheme Contributions (code 4005);

Code 4116 must not be completed if the employee is 65 years and older – validate to Date of Birth (code 3080), for the 2013 and 2014 years of assessment

Mandatory if any value specified for Medical Scheme Contributions (code 4005) and the employee is under 65 years – validate to Date of Birth (code 3080), for the 2013 and 2014 years of assessment.

From 2015 year of assessment, mandatory if any value specified for medical scheme contributions (code 4005)

This field must not be completed if there is a value specified for medical scheme contributions code 4005.

Decimal digits are mandatory even if the decimal value is zero;

Must be decimal point (comma invalid); Only valid if Year of Assessment (code

3025) is 2013 or later;

Code 4118 is mandatory if Code 2081 is marked with an X.

Value can be “0”; Value cannot be a negative; Decimal digits are mandatory even if the

decimal value is zero; Must be decimal point (comma invalid); May not be completed for nature of person

N. Must not be displayed on the certificate that

will be issued to the employee.

Code 4141 is mandatory if a UIF reference number (code 2022) is specified;

Code 4142 is mandatory if a SDL reference number (code 2024) is specified;

Decimal digits are mandatory even if the value is zero

Must be a decimal point (comma is invalid); No negative amounts are allowed and will

be rejected if completed; Invalid and will be rejected if the code 3015

(certificate type) is ITREG; Value for code 4141 and 4142 can be zero; Code 4101, 4102 and 4115 is invalid if a

reason code (code 4150) was specified; Code 4101, 4102 and 4115 is invalid if

EXTERNAL GUIDE



PAYE-AE-06-G07



certificate type (code 3015) is not IRP5; Code must be valid for the specific year of

assessment: o Codes invalid prior to 2008:



4118 o Codes invalid prior to 2010

4141 and 4142 o Codes invalid after 2009:

4103 o Applicable from 2017 year of

assessment.

4120

4149 Total Tax, SDL and UIF (employer and employee contribution)

The sum total of Employees’ Tax deductions, UIF contributions and SDL levy.

Field layout:

N11.2: Numeric field with a field length of 11.2 characters (fixed decimals).

Validation rules:

Mandatory field if any value is specified under code 4101, 4102, 4115, , 4141 or 4142;

Value must be equal to the sum total of all values completed for codes 4101, 4102, 4115, 4141 or 4142;

Decimal digits are mandatory even if the value is zero;

Must be a decimal point (comma is invalid); Code 4103 is invalid from 2010 year of

assessment; No negative amounts are allowed and will

be rejected if completed; Invalid and will be rejected if the code 3015

(certificate type) is ITREG; Must be decimal point (comma invalid); If the certificate type is ITREG this field

must not be completed.

4150 Reason code The reason code for the non-deduction of Employees’ Tax (refer to definition).

Field layout:


Validation rules:

Mandatory field if no value has been completed for code 4101, 4102 or 4115;

Value can only be 1, 2, 3, 4, 5, 6 or 7 (a zero may precede the value);

Invalid if a value is completed for code 4101, 4102 or 4115;


Value 1 is invalid after 2003 year of assessment;

Value 6 is invalid prior to 2003 year of

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assessment; Value 7 is invalid prior to 2005 year of

assessment; Value 8 is only valid from 2013 year of

assessment.

9999 End of Employees’ financial records

Indicates the end of the record. Field Layouts:


Validation rules: Mandatory field; Fixed code; Last code of electronic record and it may


5.4 EMPLOYER TOTALS TRAILER RECORD VALIDATION RULES

This record is only applicable to CSV files.


6010 Total employer records The total of all the records for the employer on the CSV file.

Field layout:


Validation rules:

Mandatory field; Must be equal to the total number of

records for the specific employer.

Note: Each record starting with code 2010 and

3010 must be counted.

6020 Total employer code values

The total of all the code values for the employer on the CSV file.

Field layout:


Validation rules:

Mandatory field; Must be equal to the sum total code value

of codes before 6010 for the specified plus all the 9999 codes in between must be added together.

Note:

Each code used must be added together to determine the sum total (including the 9999 codes).

6030 Employer’s total amounts

The total of all the code values for the employer on the CSV file.

Field layout:

N12.2: Numeric field with a field length of

EXTERNAL GUIDE



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12.2 characters (fixed decimals). Validation rules:

Mandatory field; Decimal digits are mandatory even if the

value is zero; Must be a decimal point (comma is invalid); Must be equal to the sum total of all

amounts specified for the specific employer (excluding amounts used in the Employer totals trailer record).

Note:

Each amount must be added together to determine the sum total.

9999 End of Employees’ financial records

Indicates the end of the record. Field Layouts:


Validation rules: Mandatory field; Fixed code; Last code of electronic record and it may


6 CROSS REFERENCES

DOCUMENT # DOCUMENT TITLE APPLICABILITY

PAYE-AE-06-G05 Guide for creation of CSV for IRP5 Tax certificates 1999 to 2015 - External Guide

All

PAYE-AE-06-G06 Guide for codes applicable to Employees’ Tax certificates 2015 - External Guide

All

PAYE-AE-06-G08 Guide for completion and submission of Employees’ Tax certificates 2015 - External Guide

All

EXTERNAL GUIDE



PAYE-AE-06-G07


7 DEFINITIONS AND ACRONYMS Alpha field An alpha field will include:

Alphabet A until Z Upper Case and Lower Case Dash (-) Space ( ) Comma (,) Apostrophe (‘) Characters such as ê, ë etc.

Alphanumeric field An alphanumeric field will include:

Any alphabetic letters (i.e. A to Z) in upper or lower case;

Dash (-) Space ( ) Comma (,) Apostrophe (‘) Alphabetical characters such as ê, ë, etc. Numbers 0 to 9

Alternate period A period, whether of 12 months or not, commencing on the day following the last day of the preceding alternate period in relation to the employer and ending on a date falling not more than 14 days before or after the last day of February

Certificate type Type of certificates for which tax is to be levied. Types of certificates include:

IRP5 IT3(a)

Note: Additional certificate types may be added at a later stage.

Commissioner The Commissioner for the South African Revenue Service

Computerised employer

Employer with a PC which has the e@syFileTM

installed

Conditional fields Fields that must be completed subject to defined conditions, e.g. mandatory if related fields have been completed

CSV file Comma Separated Value file e@syFile

TM The package supplied by SARS which has the

functionality to create reconciliation documents in the prescribed formats and produced an electronic file in ZipCentralFile format submission purposes

EMP701 Reconciliation adjustment declaration form

Use EMP701 with the EMP601 with 8 digit certificate numbers to adjust reconciliation submissions for 1999 – 2008 transaction years.

The EMP701 is not applicable for transaction years 2009 onwards.

Employee An employee for Employees’ Tax purposes is defines as:

A natural person who receives remuneration or to whom remuneration accrues;

A person (including a company) who receives remuneration or to whom remuneration accrues by reason of services rendered by such person to or on behalf of a labour broker;

A labour broker;

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A person or class or category of persons whom the Minister of Finance by notice in the Government Gazette declares to be an employee;

A personal service provider; A director of a private company.

An Employee for UIF purposes is defines as any natural person who receives any remuneration or to whom remuneration accrues in respect of services rendered or to be rendered by that person but excluding an independent contractor

An employee for taxable benefit purposes is defined as any person who receives remuneration or to whom remuneration accrues and includes any director of a company but excludes persons who retired before 1 March 1992 except for purposes of the provisions which deal with the payment of an employee’s debt or the release of an employee from an obligation to pay a debt

Employee Income Tax certificates

A certificate in the form prescribed by the Commissioner which shows the remuneration paid or payable to the employee/former employee by the employer and the sum of amounts of Employees’ Tax deducted or withheld by the employer from such remuneration.

The Employees’ Income Tax certificate format is prescribed on the:

1999 to 2007 format: IRP5 and IT3(a); and From 2008 format: IRP5/IT3 (a).

Employees’ Tax Means the tax required to be deducted or withheld by an employer in terms of paragraph 2 of the 4

th Schedule

from remuneration paid or payable to an employee. Employer Any person who pays or is liable to pay a person an

amount by way of remuneration including a person responsible for the payment of an amount by way of remuneration to a person under the provisions of a law or out of public funds or out of funds voted by parliament or Provincial Council. This definition excludes any person not acting as a principle but includes any person acting in a fiduciary capacity or in his/her capacity as trustee in an insolvent estate, an executor or an administrator of a benefit fund, pension fund, pension preservation fund, provident fund, provident preservation fund, retirement annuity fund or any other fund.

ETI Employment Tax Incentive Foreign Bank Account Bank Account with a financial institution not recognised

by BANKSERV (refer to www.bankservafrica.com) Free text field A free text field may include the following:

Alphabet A until Z Upper and Lower Case Characters Number 0 to 9 Dash (-) Space ( ) Inverted Commas (“”) Back slash(\) Forward slash (/) Question Mark (?) At sign (@) Ampersand (&) Dollar sign ($)

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Exclamation Mark (!) Hash (#) Plus (+) Equals (=) Semi colon (;) Colon (:) Comma (,) Apostrophe (‘) Left and Right Brackets (( )) Full Stop (.) Characters such as ê, ë etc. All special characters are allowed, however for

XML development purposes the following standard must be adhered to: ISO-8859-1 encoding or informally referred to as Latin-1. The definition of this standard can be found on: http://en.wikipedia.org/wiki/ISO/IEC_8859-1

ID-number The 13 digit identity number indicated in the green bar-coded identity document issued in accordance with the Identification Act, No. 72 of 1986

Interim reconciliation process

An administrative process at a specific point in time which is not subject to the same legal requirements (e.g. issuing an Employee Tax certificate to an employee, etc.) as those for the end of the Employer’s Tax period or the end of the tax year.

IRP5 An Employees’ Income Tax certificate where Employees’ Tax deducted or withhold are indicated

IT3(a) An Employees’ Income Tax certificate where no Employees’ Tax was deducted or withhold and a reason for the non-deduction are indicated.

Leviable Amount The leviable amount is applicable to SDL and means the total amount of remuneration paid or payable or deemed to be paid or payable by an employer to his/her employees during any month as determined for Employees’ Tax purposes, whether or not such employer is liable to deduct or withhold Employees’ Tax (it therefore means that the remuneration paid or payable to employees who earn below the tax threshold must be included into the total remuneration for determining the leviable amount).

Liabilities The amount of Employees’ Tax, SDL and UIF which an employer is obliged to deduct, withhold and/or contribute in terms of the provision of the 4

th Schedule, SDL Act and

UIF Act Mandatory fields Fields that must be completed as a rule, permitting no

option and cannot be disregarded Manual employer Employer completing an EMP 501 reconciliation and

Employee Income Tax certificates manually and do not create the relevant information with a PC which has the e@syFile

TM installed

Nature of Person Mandatory field

Nature of person includes:

A = Individual with an identity or passport number that is not a director of a company, member of close corporation, asylum seeker, pensioner or refugee;

B = Individual without an identity or passport number that is not a director of a company, member of close corporation, asylum seeker, pensioner or refugee;

http://en.wikipedia.org/wiki/ISO/IEC_8859-1

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C = Director of a private company / member of a CC;

D = Trust; E = Company / CC; F = Partnership G = Corporation; H = Personal Service Provider; M = Asylum Seekers N = Retirement Fund Lump Sum

Recipient/Pensioner R = Refugee.

Numeric field Numbers from 0 to 9 Optional fields Fields that can be completed based on applicability and

availability. These fields are not mandatory fields PAYE Pay-As-You-Earn (Employees’ Tax) Payroll authors This refers to a group of companies who supply and

support computerised payroll systems on a commercial basis

Payroll employer Employer who creates a CSV file from electronic payroll information

PSV File Pipe separated value Reconciliation declaration

The reconciliation declaration is the EMP501 document on which an employer’s PAYE, SDL and UIF liabilities are declared with associated payments, certificate values and the resulting net effect of setting off payments again liabilities

Reconciliation submission process

This is the process through which an employer submits all required PAYE, SDL and UIF documentation to SARS for processing i.e. IRP5/IT3(a), EMP501, EMP601 and an EMP701 if applicable.

Use EMP701 with the EMP601 with 8 digit certificate numbers to adjust reconciliation submissions for 1999 – 2008 transaction years.

The EMP701 is not applicable for transaction years 2009 onwards.

SARS The South African Revenue Service SARS’ website The website can be access on the following address:

www.sars.gov.za SDL levy Means the skills development levy referred to in section

3 and any administrative penalty leviable under this Act;

Subsection (1) comes into operation on a date determined by the Minister of Finance by notice in the Gazette.

SEZ Special Economic Zone designated by the Minister of Trade and Industry pursuant to an Act of Parliament (currently the Special Economic Zones Bill, B3 of 2013), will be designated areas that promote targeted economic activities, supported through special arrangements and support systems including incentives, business support services, streamlined approval processes and infrastructure. The tax incentives for these zones will be authorised by the Minister of Finance, after consultation with the Minister of Trade and Industry.

SIC7 Standard Industrial Classification (SIC Coder v7, as defined on the Statistics South Africa Website: www.statssa.gov.za)

Tax year The tax year is basically the same as the definition of transaction year for purposes of reconciliation documents submitted to SARS prior to the availability of the e@syFile

TM

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DISCLAIMER

The information contained in this guide is intended as guidance only and is not considered to be a legal

reference, nor is it a binding ruling. The information does not take the place of legislation and readers who are in

doubt regarding any aspect of the information displayed in the guide should refer to the relevant legislation, or

seek a formal opinion from a suitably qualified individual.

For more information about the contents of this publication you may:

Visit the SARS website at www.sars.gov.za

Visit your nearest SARS branch

Contact your own tax advisor/tax practitioner

If calling from within South Africa, contact the SARS Contact Centre on 0800 00 SARS (7277)

If calling from outside South Africa, contact the SARS Contact Centre on +27 11 602 2093 (only between

8am and 4pm South African time).

Taxpayer In terms of the Tax Administration Act No. 28 of 2011, taxpayer means:

a person chargeable to tax; a representative taxpayer; a withholding agent; a responsible third party; or a person who is the subject of a request to provide

assistance under an international tax agreement Transaction year The tax year during which the employer deducted and

paid employees’ tax in respect of remuneration paid or payable to an employee. This could include employees’ tax on remuneration which accrued during a previous tax year.

The Transaction year may only be a year subsequent to the ‘Year of Assessment’ in the case of ‘Variable Remuneration’ as defined in section 7B and other exceptional circumstances.

UIF contributions Contributions to the UIF are the compulsory contributions payable in terms of the UIC Act to fund the benefits available to workers in terms of the UI Act. Effective 1 April 2002, contributions collected by SARS are transferred to the UIF which is administered by the UI Commissioner.

XML Extensive Mark-up Language Year of assessment The year of assessment in which the remuneration paid

or payable to the employee accrued

8 QUALITY RECORDS

Number Title IRP5/IT3(a) Employee Tax Certificate

EMP201 Monthly Employer Declaration

EMP501 Employer Reconciliation Declaration

EMP601 Certificate Cancellation Declaration

Documents

PAYE-AE-06-G07 - Guide for Validation Rules Applicable to ...€¦ · EXTERNAL GUIDE GUIDE FOR VALIDATION RULES APPLICABLE TO RECONCILIATION DECLARATIONS 2017 - PAYE-AE-06-G07 REVISION: