SARS ETI Verification Audit
SARS are conducting audits with regards to Employment Tax Incentive (ETI) claims made by employers and issue the following general letter to employers for submission of ETI records:
VERIFICATION OF RETURN(S)
The South African Revenue Service (SARS) has identified the return(s) for the following tax period(s), for verification: 201908
Pleases review your EMP201 return(s) against your relevant payroll calculations and relevant material. If any errors are detected you can correct them by submitting a revised EMP501 reconciliation via eFIling or e@syFile. Where you did not detect errors, submit the following relevant material for the above tax period(s):
Payroll or summary report for the period
A schedule of the employment tax incentive calculations per employee indicating their names, ID numbers, age, number of hours worked for the month, remuneration and the ETI calculation for the period under verification. Where the employees earned below R2000 per month, the bargaining council and industry regulations and agreements that allowed the employer to remunerate the employee for less than R2000
Please provide proof that the employer is subject to sector determination or bound by a bargaining council agreement which prescribed a lesser minimum salary than R2000
The payroll data for purposes of submitting the employees tax certificates contains all of the above-mentioned information, except for the “wage regulating measures”, if any. It is suggested that the employers submit the tax certificate information as available on the above-mentioned payroll file, specifically the following codes:
Code 3030: Surname
Code 3040: Names
Code 3060: ID number
Code 3066: Asylum seeker permit number
Code 3080: Date of birth
Code 3190: ETI employment date
Code 7006: ETI month
Code 7005: ETI qualifying month cycle
Code 7009: ETI SEZ code
Code 7007: ETI hours
Code 7002: ETI remuneration
Code 7003: Minimum wage applicable
Code 7008: Wage paid
Code 7004: Calculated ETI
The above-mentioned information is sufficient compared to the information requested by SARS to perform the verification. Although the “age” is specifically requested, it can be determined by using the “Date of Birth”. Regards,
Rhona van Taak
Admin Manager Payroll Authors Group of South Africa
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