Download Year End Guide - Pastel Payroll

Are you prepared for the 2011/2012 PAYE Filing Season?
Pastel Payroll Tax Year End Guide (2012)
This guide is designed to assist you in the correct processing of your PAYE Year End to prevent unnecessary pressure and
frustration, as another means of continuing to support the growth of your business and development of our ongoing
partnership with you.
The year-end procedures for Pastel Payroll outline the printing of relevant reports according to your auditor or company’s
requirements and back-up and restore procedures.
The Pastel Payroll PAYE Year End procedure includes:
� Printing of IRP5 and IT3(a) Tax Certificates and submitting the electronic files to SARS.
� Reconciling the tax paid over to SARS with the tax on your employees’ Tax Certificates.
� Completing the annual Occupational Injuries and Diseases (OID) W.As8 Return for assessment.
� Printing hard copy reports for your own records.
� Creating a copy company for record purposes.
� Making proper backups.
Please note that all companies are required by law to submit their returns to the Receiver of Revenue, within 60 days after the
start of the PAYE Filing season, unless otherwise specified by the Minister of Finance.
Telephonic & Email Support
Should you require further assistance you can contact our Support Team on (011) 304 4300 or e-mail us at
support@pastelpayroll.co.za.
Book a Consultant
Book a consultant now and ensure you submit accurately and on-time.
Should you require an on-site Consultant, please contact our Consulting Team on (011) 304 4340 or e-mail us at
consulting@pastelpayroll.co.za. Alternatively, contact your Pastel Payroll Certified Installer.
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Pastel Payroll Tax Year End Checklist
Please execute each step thoroughly and tick the steps after completion.
Phase 1 – Completing the February 2012 pay period
1. Click on Help…About.
� Ensure that you process the Year End on Pastel Payroll 2012 Update 2b or later.
Pastel Payroll Tax Year End Guide (2012)
Should you require an update, go to www.pastelpayroll.co.za and download the latest update.
Alternatively you can collect a CD with the latest version from our offices or have it couriered to you (at your
own expense).
� Ensure that you run a Legislative Release from the File menu after updating your software.
2. Go to Utility…System Status.
� Ensure that you are in the final processing period of the Tax Year (i.e. February 2012). Monthly
Period 12, Weekly Period 52/53 and/or Fortnightly Period 26/27.
� Ensure that the number of Processed Employees is zero.
�
�
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3. Go to View…Statutory Reports…IRP5/IT3(a) Exception Report.
� Print the IRP5/IT3(a) Exceptions Report before processing a Payroll Run.
� Print the report for all employees.
� Select “Both” under the Print Status.
Pastel Payroll Tax Year End Guide (2012)
Some of the exceptions can only be corrected in the last processing period, so we advise that you do not
do a pay period update into the Year End period before these errors are all corrected. Should you be
pressed for time to update into year end, ensure that you make a copy company in the last pay period so
that these errors can be corrected in your copy company at a later stage.
PLEASE NOTE: Pastel Payroll allows you to continue with your Year End processing even though
exceptions may be detected, but will not allow you to generate the electronic tax certificate export file for
employees with exceptions. If you decide to continue without correcting the exceptions first, you will have
to make the necessary corrections at a later stage in BOTH your backup copy company and your live data
being used for processing from March 2012 onwards.
� Correct all the Level 1 and Level 2 exceptions as listed in this report BEFORE processing the final
payroll run.
For more information on the different levels of exceptions and the required corrections, please refer to the
Exceptions table later in this document.
4. Reinstating an employee that is on maternity leave.
� If you have any employees who will be on maternity leave during year end, they must be reinstated
in the last processing period of the year. This will ensure that the necessary tax adjustments are
processed before issuing an IRP5/IT3(a) Tax Certificate.
� After the year end process is completed, you must remember to terminate them again. The
termination must be processed in the first processing period of the new tax year.
5. Click on Process…Payslips.
� If you want to process leave over Year End you should process the leave until the last day of the
Tax Year. Once your company is in the new Tax Year process the balance of the leave for the new
Tax Year.
6. Go to Process…Payroll Run.
� Print your payslips in the last processing period by processing a Payroll Run.
7. Click on View…Payroll Reports.
� Produce all your usual reports for the month ending February 2012, i.e. EMP201, UIF Electronic
Declaration, Periodic Variance etc.
� It is recommended that you print a detailed Monthly Analysis report for the entire tax year.
� Click on View…Payroll Reports…Monthly Analysis and select to print a detailed report for the last
12 months. Include all employees and all transactions. This report will provide you with details of
all processing done for the past tax year.
�
�
�
�
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8. Click on Process…Pay Period Update.
Pastel Payroll Tax Year End Guide (2012)
� Process a Pay Period Update.
� Pastel Payroll will prompt you to print an IRP5/IT3(a) Exception Report before processing the Pay
Period Update. It is recommended that this report is printed and all exceptions corrected before
closing the last processing periods for the tax year.
You may select to print the report now and only correct the exceptions when your company is in the Year
End period. If you process multiple pay frequencies on the same company, e.g. monthly and weekly
employees, you will have to be in the final month and/or week of the Tax Year before you will be able to
update into the Year End period.
IMPORTANT: Pastel Payroll will not allow you to continue with the final Pay Period Update for the tax year
unless you take a BACKUP of your company at this point.
Please store your backup in a safe place. It is recommended that you make at least two backups, storing at
least one on an external storage device (like a flash drive or CD) or a server.
� Making use of the backup functionality, create a directory called February 2012 and select to make
the backup in the new directory. Specify a unique name for the backup, i.e.
YE2012P(20120206).zip.
� Proceed with the pay period update after the backup process has completed.
�
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Phase 2 – Updating into the March 2012 pay period
9. Click on Utility…System Status.
Pastel Payroll Tax Year End Guide (2012)
� All the activated pay frequencies on your company should now be in the Year End period.
� We recommend that you do the following:
i. Process the Year End Update, select to make a copy company and proceed with your March payslip
processing.
ii. You have 60 days after the start of the PAYE Filing Season in which you must finalise your
employees’ IRP5/IT3(a) Tax Certificates and submit them, together with your completed EMP501
Reconciliation, to SARS.
iii. You will be able to finalise and produce the electronic IRP5/IT3(a) Tax Certificates and EMP501
Reconciliation from the copy company created for the 2011/2012 tax year.
10. Click on Process…Year End Update.
� Process the Year End Update. This procedure will update your pay frequencies into the new Tax
Year, i.e. March 2012.
11a. During the Year End Update process.
� When processing the Year End Update, Pastel Payroll will prompt you to make a BACKUP. It is
important that you make this backup before continuing.
� Making use of the backup functionality, create a directory called Year End 2012 and select to make
the backup in the new directory. Specify a unique name for the backup, i.e. YE2012P(20120206).zip.
� Proceed with the year end update after the backup process has completed.
�
�
�
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11b. Select to make a Copy Company.
Pastel Payroll Tax Year End Guide (2012)
� Enter a name for the copy company that is relevant to the Tax Year e.g. YEND2012. The electronic
IRP5/IT3(a) Tax Certificates and EMP501 Reconciliation will be generated in the copy company.
11c. Confirm Processes.
� Confirm that you have done the following by placing tick marks in the applicable fields:
i. I have made a backup of my company data.
ii. I have printed all the annual reports as indicated in my country’s legislative document.
(This process will be completed in your copy company at a later stage.)
iii. I have printed all the statutory certificates as indicated in my country’s legislative document.
(This process will be completed in your copy company at a later stage.)
�
�
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11d. Delete Terminated Employees.
Pastel Payroll Tax Year End Guide (2012)
� You may now select to delete any employees terminated during the tax year.
� Click on the Filter button.
� All the employees terminated during the tax year will be listed in the Employees To Process column
on the right hand side of the Employee Filter.
� The terminated employees that must be deleted should be selected in the Employees To Process
column on the right hand side of the Employee Filter. Employees that should not be deleted must be
moved to the Employees To Select From column on the left hand side of the Employee Filter.
� To move employees between the columns, select the employee/s and click on Move Selected
Employees.
� Click OK to return to the previous screen.
� Click on the Delete button to delete the selected employees.
12. After the Year End Update process.
� Once your company is in March 2012 (or period 1 of the new Tax Year), click on Setup…Pay
Frequencies.
� Ensure that the Fifth weeks and Third fortnights are indicated correctly for your Weekly and
Fortnightly Pay Frequencies.
� Verify that the correct Public Holidays are on the Holidays Tab.
The Public Holidays for the year March 2012 to February 2013 will automatically be updated after you
installed Pastel Payroll 2013 Update 1, which will include the new income tax rates and legislative changes
announced during the annual budget speech. Alternatively, you can amend the public holidays manually by
editing the list displayed in Setup...Pay Frequencies...Holidays.
� If you prefer to use a reference to a Tax Year in your company name, you may now click on
File…Rename and select to rename your existing company for the new Tax Year.
�
�
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13. Click on Edit…Employee Masterfile...Tax
Pastel Payroll Tax Year End Guide (2012)
� Employees who had Tax Directives for the previous Tax Year will be reset to the Average Tax method
once you have completed the Year End Update.
� Your employees are required to apply for new tax directives.
� You are now ready to start processing for the new Tax Year.
Phase 3 – Producing PAYE, UIF and SDL submissions and employee tax certificates
14. Click on File…Open.
� Select the year end copy company, i.e. YEND2012.
� Click on OK.
� Open the Copy Company that was created during the Year End process.
� Click on the Utility Menu and select the Rebuild Totals option. Select to Rebuild All.
15. Click on View…Statutory Reports…OID Return.
� Print the OID Return. Use this report to complete your annual W.As8 Return Of Earnings to the
Occupational Injuries and Diseases Compensation Fund by 31 March 2012.
16. Click on View...Statutory Reports...IRP5/IT3(a) Exceptions Report.
� Print the IRP5/IT3(a) Exceptions Report.
� Print the report for all employees.
� Select “Both” under the Print Status.
� The option to include SARS Future Validations does not have to be selected at this stage.
� Correct all the exceptions as listed in this report BEFORE generating the electronic IRP5/IT3(a) tax
certificates and EMP501 Reconciliation.
For more information on the different levels of exceptions and the required corrections, please refer to the
Exceptions table later in this document.
17. Click on View…Statutory Reports…IRP5 Check List and View…Statutory Reports…IT3(a) Checklist.
� Print the IRP5 and IT3(a) Checklists for all employees, including Tax Total details, and ensure that all
the tax certificate information is correct.
18. Click on View...Statutory Reports...EMP501 Reconciliation.
� Print the EMP501 Reconciliation Report detailing the total PAYE, UIF and SDL contributions for the
tax year. Select from period 1(31/03/2011) to period 12(28/02/2012).
� Use this report when completing the SARS Reconciliation Declaration to reconcile the total PAYE, UIF
and SDL contributions according to the IRP5/IT3(a) tax certificates, to the monthly EMP201 payments
submitted to SARS.
�
�
�
�
�
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19. Click on View…Statutory Reports…IRP5/IT3(a) Electronic Certificates.
Important Note:
Pastel Payroll Tax Year End Guide (2012)
� Complete these steps to generate the IRP5.12 CSV file to upload into the SARS e@syFile application.
The IRP5.12 file will contain electronic copies of all your employees’ IRP5/IT3(a) Tax Certificates.
� Enter the first tax certificate number in the field provided.
� Select to generate a Final Print.
� Select a drive and directory where the IRP5.12 file should be created and stored. Remember to
browse to the same directory to find the IRP5.12 file when importing the electronic tax certificates into
the SARS e@syFile application.
Please ensure that you have downloaded the latest version of e@syFile from www.sarsefiling.co.za.
Kindly click on the links below for further information:
SARS e@syFile Submission User Guide:
http://downloads.sarsefiling.co.za/easyfile/easyFile_MANUAL_2010_08.pdf
SARS EMP201/EMP501 Reconciliation Assistant User Guide:
http://downloads.sarsefiling.co.za/easyfile/PAYEprocessguide_2010_08.pdf
SARS ITA88:
http://downloads.sarsefiling.co.za/easyfile/ITA88UserManual.pdf
�
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Below is a listing of errors you might encounter on the IRP5/IT3(a) Exceptions Report
Error
Fix
Pastel Payroll Tax Year End Guide (2012)
Level 1 Exceptions Certificates cannot be exported to e@syfile while level 1 exceptions exist.
The Business Address must be specified on the Setup…Company
Parameters screen.
Select Setup…Company Parameters and enter the company’s Postal or Physical Address.
A valid postal code must be specified on the Setup…Company
Parameters screen.
A valid PAYE Reference Number must be specified on the
Setup…Company Parameters screen on the Statutory tab.
A valid SDL Reference Number must be specified on the
Setup…Company Parameters screen on the Statutory tab.
A valid Employer Trade Classification Code must be specified on the
Setup…Company Parameters screen on the Statutory tab.
A company telephone number must be entered on the
Setup…Company Parameters screen.
A Contact Person must be entered on the Setup…Company
Parameters screen.
Residential and Postal Address must be specified on the
Edit…Employee Masterfile screen.
The bank account number and bank branch code must be entered
for an employee that is paid by bank transfer on the Edit…Employee
Masterfile screen.
Select Setup…Company Parameters and enter a valid postal code for the company address.
Select Setup…Company Parameters…Statutory and enter the registered PAYE number of
your company in the PAYE Reg. No. field. This is a compulsory field for tax certificate
purposes.
Select Setup…Company…Parameters…Statutory and enter the SDL Reference Number. It
should be the same number as the PAYE Reference Number but should begin with an L.
Select Setup…Company Parameters…Statutory and select the Trade Classification from the
zoom.
Select Setup…Company Parameters…Company…Company Information and enter the
company telephone number.
Select Setup…Company Parameters…Company…Company Information and enter the contact
person name.
Select Edit…Employee Masterfile…Personal…Addresses and enter the employee’s residential
and postal addresses.
Select Edit…Employee Masterfile…Payment and enter the banking details for the employee
that is paid by bank transfer.
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Pastel Payroll Tax Year End Guide (2012)
Level 2 Exceptions Level 2 Exceptions must be corrected before processing the final payroll run in
February 2012. Employees with Level 2 Exceptions will be excluded from the CSV file
exported for e@syFile.
There is a negative tax total 4101 (SITE) or 4102 (PAYE) or
4103(Total Tax).
SARS will reject a tax certificate with negative totals for employee’s tax.
A corrective transaction must be processed before printing the final payslip in February 2012.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
Alternatively, e-mail your IRP5/IT3(a) Exceptions Report and a detailed 12 month Monthly
Analysis report for this employee to support@pastelpayroll.co.za.
Negative Tax Totals detected. SARS will reject a tax certificate with negative totals for any certificate source code.
A corrective transaction must be processed before printing the final payslip in February 2012 or
the RFI setup must be checked.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
Alternatively, e-mail your IRP5/IT3(a) Exceptions Report and a detailed 12 month Monthly
Analysis report for this employee to support@pastelpayroll.co.za.
The employee has a deduction for Retirement Annuity (Tax Total
4003), but no Non-Retirement Funding Income (Tax Total 3698).
Tax totals 4024 (Medical Costs Direct Family) not equal to tax total
3813(Medical Costs Paid by Company).
Code 4005(Medical Aid Contributions) is mandatory if a value for
code 3810(Medical Aid Benefit) or code 4025(Med. Contributions
Tax Deduct) is specified.
SARS will reject a tax certificate where a tax deduction for RA contributions was allowed
against Retirement Funding Income only.
A corrective transaction must be processed before printing the final payslip in February 2012 or
the NRFI setup must be checked.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
SARS will reject a tax certificate where Medical Costs Fringe Benefit value is not equal to the
actual costs incurred on behalf of the employee.
A corrective transaction must be processed before printing the final payslip in February 2012.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
SARS will reject a tax certificate where a Medical Aid Fringe Benefit or Tax Deduction was
allowed without reporting the actual or deemed contribution made by the employee.
A corrective transaction must be processed before printing the final payslip in February 2012.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
Alternatively, e-mail your IRP5/IT3(a) Exceptions Report and a detailed 12 month Monthly
Analysis report for this employee to support@pastelpayroll.co.za
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Code 4486(Medical Aid Capped Amount) is mandatory if a value for
code 4025(Med. Contributions Tax Deduct) is specified.
The value of code 4025(Med. Contributions Tax Deduct) may not be
greater than the value of code 4005(Medical Aid Contributions).
The value for code 4475 + 4476 cannot be greater than the value of
code 3808.
Pastel Payroll Tax Year End Guide (2012)
SARS will reject a tax certificate where a Medical Aid Tax Deduction was allowed without
reporting the Capped Value used to calculate the tax deductible amount.
A corrective transaction must be processed before printing the final payslip in February 2012.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
Alternatively, e-mail your IRP5/IT3(a) Exceptions Report and a detailed 12 month Monthly
Analysis report for this employee to support@pastelpayroll.co.za
SARS will reject a tax certificate where a Medical Aid Tax Deduction was allowed that exceeds
the actual contribution made by the employee.
A corrective transaction must be processed before printing the final payslip in February 2012.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
Alternatively, e-mail your IRP5/IT3(a) Exceptions Report and a detailed 12 month Monthly
Analysis report for this employee to support@pastelpayroll.co.za
SARS will reject a tax certificate where the value of an RA or Income Protection Policy
contribution made by the employer is not reported against a Payment of Debt Fringe Benefit.
A corrective transaction must be processed before printing the final payslip in February 2012.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
Alternatively, e-mail your IRP5/IT3(a) Exceptions Report and a detailed 12 month Monthly
Analysis report for this employee to support@pastelpayroll.co.za
Code 3915 needs to have a value if code 4115 has a value. SARS will reject a tax certificate where Pension Fund or RA lump sum payment was made on
retirement without deducting PAYE on the retirement benefit.
A corrective transaction must be processed before printing the final payslip in February 2012.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
Alternatively, e-mail your IRP5/IT3(a) Exceptions Report and a detailed 12 month Monthly
Analysis report for this employee to support@pastelpayroll.co.za
Code 4474(Medical Aid Contributions) is mandatory if a value for
code 3810(Medical Aid Benefit) is specified.
SARS will reject a tax certificate where a Medical Aid Fringe Benefit was allowed without
reporting the value contributed by the employer.
A corrective transaction must be processed before printing the final payslip in February 2012.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
Alternatively, e-mail your IRP5/IT3(a) Exceptions Report and a detailed 12 month Monthly
Analysis report for this employee to support@pastelpayroll.co.za
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Tax Totals 4101 (SITE) and 4102 (PAYE) cannot have values if the
Tax Method on the Tax Tab on Edit…Employee Masterfile is
Exempt.
Nature of Person is “C” Director, but no value has been processed
against Tax Total 3615.
Pastel Payroll Tax Year End Guide (2012)
SARS will reject a tax certificate where an employee is exempt from paying employee’s tax, but
an amount for SITE and/or PAYE was deducted.
A corrective transaction must be processed before printing the final payslip in February 2012 or
the employee’s tax method must be changed.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
SARS will reject a tax certificate where the employee’s Nature of Person is “C”, but no earnings
are reported against Director’s Remuneration.
A corrective transaction must be processed before printing the final payslip in February 2012 or
the employee’s nature of person must be adjusted.
Please contact the Pastel Payroll Support Team on +27 11 304 4300 for assistance.
Tax Totals 3696 + 3699 must be equal to Income Sources SARS will reject a tax certificate where the total value of all Income Sources does not add up to
the Gross Income Totals.
Ensure that all other Level 2 exceptions have been cleared. Process the Payroll Run and Pay
Period Update for the final processing period in February 2012.
In the Year End period, ensure that any Transaction Templates have been allocated to the
correct Tax Totals.
Run a Rebuild Totals from the Utility menu.
If the exception persists, please contact the Pastel Payroll Support Team on +27 11 304 4300
for assistance.
Alternatively, e-mail a backup of your February 2012 data to support@pastelpayroll.co.za for
further investigation.
Level 3 Exceptions Level 3 Exceptions can be corrected before processing the final payroll run in
February 2012 or after processing the pay period update into Year End. Employees
with Level 3 Exceptions will be excluded from the CSV file exported for e@syFile.
Employee’s Tax Number specified on the Tax Tab on
Edit…Employee Masterfile screen is invalid.
Employee’s ID Number specified on the Personal Tab on
Edit…Employee Masterfile screen is invalid.
Select Edit…Employee Masterfile and enter the correct Tax Number on the Tax tab for the
specific employee. If an employee does not have a tax number, make sure this field is left
blank.
Select Edit…Employee Masterfile and make sure that the ID Number of the specified employee
is entered correctly. If you do not have an ID number, enter the Passport Number in the
Passport Number Field.
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Nature of Person must be specified on the Tax Tab on
Edit...Employee Masterfile screen.
Employee’s Date of Birth and ID Number do not match.
Specify a valid IT3(a) Reason Code on the Tax Tab on
Edit…Employee Masterfile screen.
Pastel Payroll Tax Year End Guide (2012)
Select Edit…Employee Masterfile…Tax and select one of the following options from the Nature
of Person field:
A = Employee has a valid ID document or SA passport and the ID/passport number was
entered on the Personal tab of the Employee Masterfile.
B = Employee does not have a valid ID document or SA passport and no ID/passport number
was entered on the Personal tab of the Employee Masterfile.
C = Employee is a Director of a company or Member of a CC
D = Employee is not an individual but registered as a Trust.
E = Employee is not an individual but a Company or CC.
F = Employee is not an individual but trades as a Partnership.
G = Employee is not an individual but trades as a Corporation.
H = Employee is not an individual but a Personal Service Provider
M = Not used
N = Pensioner
Select Edit…Employee Masterfile and correct the ID Number or Date of Birth on the Personal
Tab for the specific employee. Ensure that the first 6 digits of the ID number correspond with
the Date of Birth.
When an employee does not pay tax, a valid IT3(a) Reason Code should be specified. Select
Edit…Employee Masterfile and access the employee in question. Select the Tax tab. Select
the reason why no employee’s tax was deducted from the employee’s earnings from the IT3(a)
Reason Code field:
1 = Not a valid option after the 2003 tax year.
2 = Employee’s annual earnings are less than the annual tax threshold (R59 750 per annum for
employees younger than 65 years or R93 150 per annum for employees older than 65 years).
3 = Employee is an Independent Contractor not deemed to be an employee.
4 = Employee received only non taxable earnings for the current tax year.
5 = Employee received income from a source outside South Africa which was exempt from
employees tax.
6 = Employee is a Director of a company or Member of a CC and received additional earnings
only taxable in the next tax year.
7 = Employee is not an individual but a Labour Broker in possession of an IRP30 tax exemption
certificate issued by SARS for the current tax year.
Note! Instead of setting each individual IT3(a) Reason Code on the Edit…Employee Masterfile
screen, use the new global IT3(a) Reason Code Setup screen that will be available after running
the IRP5/IT3(a) Exceptions Report.
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Employee’s ID or Passport Number must be specified on the
Edit…Employee Masterfile screen.
Company/CC/Trust Number must be specified on the Tax Tab on
Edit…Employee Masterfile screen.
Directive Number must be specified on the Tax Tab on
Edit…Employee Masterfile screen.
ID Number, Passport or Company/CC/Trust Number must be
entered if Nature of Person is “M”.
Please specify Retirement Funding Income or Non-Retirement
Funding Income.
Nature of Person should be “C” if the IT3(a) Reason Code is 6 on the
Tax Tab on Edit…Employee Masterfile screen.
Pastel Payroll Tax Year End Guide (2012)
If you do not have an ID Number or Passport Number for an employee, you have to select
Edit…Employee Masterfile and select the Nature of Person on the Tax Tab as B – Individual
without ID. Alternatively, enter the ID number or Passport Number of the employee on the
Personal tab.
If the Nature of Person is D or E you will need to enter the Company/CC/Trust Number by
selecting Edit…Employee Masterfile and entering the Company/CC/Trust Number on the Tax
tab.
If the Tax Method for an employee is Directive Percentage or Directive Amount you are required
to enter the Directive Number by selecting Edit…Employee Masterfile and entering the directive
number on the Tax Tab.
When the nature of Person of an employee is selected as M, you must enter the ID Number,
R.S.A. Passport or Company/CC/Trust Number by selecting Edit…Employee Masterfile and
correcting the details on the Personal and Tax tabs.
Indicate whether the value of the transaction in question was used in the calculation of
pension/provident fund contributions. Use any one of the following methods:
Select Setup…Transactions. Select the transaction in question. Click on Calculation Totals
and select the Retirement Funding Income option if pension/provident fund contributions were
based on the value of this taxable income/benefit. Select the Non Retirement Funding Income
option if pension/provident fund contributions were not calculated on the value of this taxable
income/benefit.
Select Setup…RFI Profiles. Enter a code and description for the pension/provident fund
contributions that were processed. Select whether the contributions were calculated on a
Percentage of Package or Percentage of Income. If calculated on a Percentage of Package,
specify the percentage in the field provided. If calculated on a Percentage of Income, select
each applicable taxable income and/or benefit transaction and specify the percentage of the
value on which the pension/provident fund contribution was based. Select the employees tab
and add the employees who are members of this specific pension/provident fund.
If the employee is a Director and the Nature of Person is specified as C – Director on the Tax
tab of the Employee Masterfile, the IT3(a) Reason Code should be 6-Directors Remuneration.
To correct this, select Edit…Employee Masterfile and select the correct options on the Tax tab.
Page | 16

Retirement Funding Income or Non-Retirement Funding Income
should not be specified if not Gross Remuneration.
Double or Single quotes used on the Employee Surname, Name or
Address must be removed on Edit…Employee Masterfile screen.
Tax Totals 3697 (RFI) + 3698 (Non-RFI) not equal to tax total 3699
(Gross Remuneration). Check Calculation Total 11, 12 and Tax
Total 45.
Nature of person "B" must not have an ID Number or a Passport number
entered.
Director's bonus transaction 5207 has been used, so the IT3(a) reason code
on the Tax Tab, Employee Masterfile screen must be a 6.
Tax totals 3605 has been checked, so 3695 and 3699 must also be
checked.
Tax totals 3695 have been checked, so 3605 and 3699 must also be
checked.
Pastel Payroll Tax Year End Guide (2012)
For the Transactions that are specified on the exception report, uncheck Retirement Funding
Income or Non-Retirement Funding Income under Setup…Transactions…Calculation Totals.
Remove any ‘ (Apostrophes) or “ (Quotes) from the employee name, surname and address
fields under Edit…Employee Masterfile on the Personal tab.
Ensure that all Transactions that are linked to tax total 45 – Gross Remuneration are linked to
either Calculation Total 11 – Retirement Funding Income or Calculation total 12 – Non-
Retirement Funding Income under Setup…Transactions…Tax Totals. Also refer to exception
number 15 above to solve this problem.
Select Edit…Employee Masterfile and access the employee in question. Select the Tax Tab. Select the
Nature of Person option A or C.
Select Edit…Employee Masterfile and access the employee in question. Select the Tax Tab. Select the
IT3(a) Reason Code option 6.
Select Setup…Transactions. Select the transaction in question. Check which template code the
transaction is linked to. Click the Cancel button. Go to Setup…Transaction Templates. Select the
template the transaction is linked to. Click on Tax Totals. Select Tax Totals 3605, 3695 and 3699.
Select Setup…Transactions. Select the transaction in question. Check which template code the
transaction is linked to. Click the Cancel button. Select Setup…Transaction Templates. Select the
template the transaction is linked to. Click on Tax Totals. Select Tax Totals 3605, 3695 and 3699.
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If you require additional assistance, simply follow the steps below:
Step 1 – Visit Website:
Visit www.pastelpayroll.co.za for our year end support tools to assist you during this busy period.
Pastel Payroll Tax Year End Guide (2012)
Step 2 - E-mail us:
Due to the high call volumes we experience during the year end period, you can e-mail us at support@pastelpayroll.co.za. We will return your e-mail
enquiry within 24 hours. Please include your company name, name and surname as well as contact details on all e-mails to ensure a prompt response.
Step 3 – Contact us:
Contact us at +27 11 304 4300 during the following extended operating hours:
Mondays to Thursdays: 07:00 to 18:00
Fridays: 07:00 to 17:00
Saturdays: 09:00 to 13:00
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