SARS is conducting audits on Employment Tax Incentive (ETI) claims made by employers. They have issued a letter to employers requesting the submission of ETI records for verification of returns for the 201908 tax period. Employers are advised to review their EMP201 returns and relevant material for any errors and to correct them by submitting a revised EMP501 reconciliation via eFiling or e@syFile. If no errors are detected, employers are required to submit relevant material such as a payroll or summary report for the period, a schedule of the ETI calculations per employee, proof of bargaining council and industry regulations and agreements, and proof of sector determination or bargaining council agreement that prescribed a lesser minimum salary than R2000 for employees earning below that amount.

Employers are advised to submit the tax certificate information as available on the payroll file, specifically the codes for surname, names, ID number, asylum seeker permit number, date of birth, ETI employment date, ETI month, ETI qualifying month cycle, ETI SEZ code, ETI hours, ETI remuneration, minimum wage applicable, wage paid, and calculated ETI. The “age” can be determined using the “Date of Birth”.

For more information, please visit https://www.pagsa.org.za/2023/06/10/nf-2023-19-sars-eti-verification-audits/.

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