The following is knowledge that has been shared from Rhona van Taak on previous easyfile (also referred to as e@syfile or e@sy-file) queries

EASYFILE

The following steps can be followed to correct a corrupt database on e@syfile:
You can delete the database for the specific employer out of the easyfile database and just REDO that employer that you deleted.

To delete the database of the specific employer, please follow the following steps:
1. Make sure all hidden files can be viewed on your computer.
2. Select C drive
3. Select USERS
4. Select the relevant user
5. Select APPDATA
6. Select ROAMING
7. Select the EASYFILEEMPLOYER.XXXXXXXXX (the x’s will be the NUMBERS FOLLOWING) FOLDER
8. Select LOCAL STORE

The database will then be displayed as follows with the name as the employer PAYE number and a .dbz extension.

Depending on how many companies you have on easyfile, all the companies PAYE reference numbers will be in the LOCAL STORE.
You only select the PAYE reference number which is corrupt and delete that DBZ file.

After you delete that employer, you have to redo all the transactions for that specific employer in easyfile (i.e creating the employer and importing the payroll file etc.).

Form viewer problems or missing form viewer:

If you are experiencing issues with Form viewer or the form viewer application is not available, the client must please install the Forms Viewer from the Utilities Menu – System Configuration option (last option on the list displayed) – Install button on the right side of the screen.

During the update, the downloaded Forms Viewer installation is saved to desktop. Users can double-click on this icon on the desktop to run the installation manually. Please ensure e@syFile & Forms Viewer is closed for this.

Adjustment to PDF rendering to allow OS default application (Error 1016 on easyfile):
Clients with 64 bit should be able to print PDF documents without reinstalling 32 bit (version 7.2.5). Numerous complaints were also received from clients when ‘Updating’ easyfile after submission and error 1016 was displayed on easyfile. Due to this error 1016 on easyfile, files were unfortunately not processed through easyfile. Clients who received error 1016 on easyfile should resubmit using the full resubmission functionality on the ‘Utilities’ menu with the updated e@syFile version.
PDF rendering was added. It is ticked by default but if not, employers must please ensure it is ticked to activate.

The PDF rendering option can be found under: Utilities Menu – System Configuration option (last option on the list displayed).

IT88’s (also referred to as AA88 or third party appointments)

There is no specific limitation in respect of SARS third party appointments (AA88). However, SARS do take into consideration the “affordability” of an employee in respect of AA88 deductions.

Where the employer identifies that the employee will not be able to afford the deduction, the employer can submit an “Affordability Request” outcome for the employee on e@syFile. SARS will calculate the affordability terms based on the employee’s related income information. In cases where this calculation is too onerous in the employee’s view, the employee is required to visit a SARS branch office to make the necessary arrangements and substantiate what is affordable to allow the employee to pay for his/her basic living expenses.

More information on this can be found on the SARS website by using the following link: https://www.sars.gov.za/TaxTypes/PAYE/Pages/Guidelines-for-agent-appointment.aspx

Please refer to the “Employers Guide to the AA88 Third Party Appointment process” as well as the “Third Party Appointment AA88 easyFile Employer User Guide” on the SARS website.

After the AA88s have been synced on the e@syfile application, the user can select the outcome as “Request affordability” and SUMBIT to SARS.

Resolvig PDF errors when opening EMP501 returns through e@syfile:
Some users expericed issues with opening EMP501 returns on easyfile Resolving issues with of EMP501 reports that does not open on easyfile can be done by replacing the 64-bit version of Adobe Reader with a 32-bit version.
To do this:
Uninstall Adobe Reader from the Control Panel on your computer.
Restart the PC (this is very important).
Download and install the 32-bit version from the following link: https://get.adobe.com/reader/otherversions/
On the left select your OS, Language and then the 32-bit version(top one from dropdown)
Make sure to uncheck the McAfee’s and the Chrome Extension
then click “Download Adobe Reader”, it will download an installer which when you double-click will download and install the 32-bit version.

System errors and SARS easyfile consultant:
It is suggested that you contact the SARS E@syfile Consultant on [email protected] so that the Consultant can remotely assist you. These consultants are in the best position to assist and investigate in case of a legitimate system error.

ETV directive issue date error
This error was previously reported by PAGSA to SARS.
The reason for the error might be as a result of 2 things, namely:
• The accrual date of the directive income used instead of the issue date of the directive; or
• A final certificate was issued in August for the employee, and with the February submission, the certificate number used in August was again used for a different employee.
In cases where there is no directive applicable, please try the steps indicated below:
• Open the certificate on e@syFile and open the directive detail container for this certificate – it should be empty.
• Check that it is “blank” and doesn’t contain a space and confirm that it is.
• Save the certificate and try submitting again.
In cases where the directive issue date is correctly reported on the tax certificate, it is suggested that you contact the SARS E@syfile Consultant on the attached list so that the Consultant can remotely assist you. These consultants are in the best position to assist and investigate in case of a legitimate system error.

ETV Tax validation on tax certificates – incorrect tax deducted
From the 2020 year of assessment, SARS is performing tax calculations on the IRP5/IT3(a) certificates. Where it is found that the incorrect amount of tax was deducted from the employee, a letter will be issued, accompanied by a file containing a list of the certificates that have failed the SARS calculation.
The tilde (~) delimited text file containing the reasons for the failure(s) will also be sent to the submitting channel.
• e@syfile validation calculation file: can be found on the EMP501 Status Dashboard. After clicking “Update” to see the submission status, click the “Download Employment Tax Validation” button located at the top of the screen to download the tilde (~) delimited text file.
• eFiling validation calculation file: can be found on the EMP501 work page next to the EMP501 information. Click on “View” under the View Certificate Errors heading. The file will be downloaded or an option to save will be displayed (depending on browser used).
Note: The purpose of the Payroll Tax Validation letter is to inform the employer of discrepancies on the amount of tax or levies that were deducted for employees. All the certificates submitted were accepted and processed and will be pre-populated on the employee’s income tax return (ITR12).

In terms of paragraph 2 of the Fourth Schedule to the Income Tax Act, the employer has an obligation to deduct PAYE from the remuneration paid to the employee as and when the remuneration is paid and pay such amount deducted over to SARS via the monthly EMP201 return.

Due to fluctuating of remuneration or unpaid pay period, it might happen that the final calculation of PAYE done at the end of the employee’s tax period, indicate that there is an over-deduction of PAYE, although it is not an actual over-deduction if the calculation is done at each pay period. This calculation is normally done when the total remuneration paid until the end of the employees’ tax period is annualized and the annual tax rates are used to determine the total PAYE on the total remuneration paid during the tax period. This same method is used by SARS during the Tax Validation process and an ETV report is then provided to the employer with the outcome of this calculation.

The Fourth Schedule do not make provision for the employer to refund any over-deduction of PAYE to the employee. The employee is supposed to complete his income tax return in order to claim this over-deduction.

Should the employer receive the ETV report from SARS on the tax validations and found after a recalculation of the relevant tax certificates that the PAYE amounts are actually correctly deducted at every pay period (e.g. month, etc.), the employer may ignore the SARS provided calculation and does not need to re-submit the tax certificate.

However, should it be found that the tax is under-deducted on the certificate (after the re-calculation is done), such certificate must be corrected with the correct amount of PAYE which should be recovered from the employee (if it is more than the original amount).
Please note refunds of over-deducted PAYE amounts may not be refunded by the employer to the employee due to the fact that the Fourth Schedule does not make provision for this. If an amount is over-deducted, the voluntary indicator must be set accordingly and the certificate must be re-submitted.

At this stage SARS is only issuing the Tax validation report as a guideline/warning to make employers aware of the calculation result obtained by SARS when re-calculate a tax certificate.
Where the employer re-check these figures and find that the PAYE, SDL, and UIF was correctly deducted during the pay periods, these “failed” warnings should be ignored.
As the provisions of the Income Tax Act does not allow an employer to refund PAYE to an employee, the employer cannot during the final determination of his PAYE payable, refund the employee any over-deduction of PAYE.

It should be noted that the tax certificate has NOT failed validation for pre-population into the income tax assessment process of the individual.

Gross employment income column in the ETV report: This result indicated by SARS in the report is the gross-up result of the total remuneration on the tax certificate ÷ pay periods worked x pay periods in tax year.

The following link can be used to obtain more information on the ETV SARS process.
Employment Taxes Validation (ETV) – South African Revenue Service (sars.gov.za)

The “Not Assessed” status will not result in a letter being issued. A letter will be issued when there is a tax calculation failure or if a single IT number was used for more than one person.

Where the employer is notified that the ITR12 return containing the IRP5/IT3(a) certificate has already been assessed, the employer must inform the employee to resubmit his/her ITR12 return to allow the changes made on the IRP5/IT3(a) certificate to be affected on the employee’s assessment

Validation error: PAYE more than income on tax certificate

With the introduction of paragraph 11C in the early 2000’s, SARS has amended the tax certificate rules to allow R1 income where the remuneration is only determined at a later stage. This rule amendment was specifically to accommodate director’s deemed remuneration scenarios.

However, some employers use this rule for sole proprietors, etc. to try and get around the provisional tax obligations. As the tax legislation has changed some time ago with regards to directors’ remuneration, the rule of at least R1 income with a PAYE value was withdrawn from the PAYE BRS as it is no longer applicable (no more deemed remuneration provisions in the tax law relating to director’s remuneration).

A new rule has replaced this rule, which in effect means that PAYE cannot be greater than the income on the tax certificate. As an employer cannot deduct more PAYE from income which is available for such a deduction. For example, if you are only paying the director R10000 you cannot deduct PAYE of R12000 (from what income do you deduct the additional R2000 PAYE?).

Therefore, if the income is not sufficient to cover the PAYE reflected on the IRP5, such IRP5 will not pass the validations.

In terms of tax law, a director, sole proprietors, etc. should be registered as a provisional taxpayer and provision for his tax liability should be done through the provisional tax process. There is no alternative, unless the remuneration paid to the director/sole proprietor, etc. through the company is efficient to cover the PAYE deducted on the tax certificate.

The provisions relating to the voluntary PAYE deduction in the Fourth Schedule to the Income Tax Act, only applies to the remuneration paid to an employee. Therefore, if no remuneration is paid to a director/sole proprietor, PAYE cannot be voluntary deducted or if remuneration is paid which is a lesser amount of the PAYE, the PAYE can only be voluntary deducted up to the amount of the remuneration paid.