Preparing for the 2025 Tax Year-End
February marks the close of the payroll tax year—a crucial time to ensure your employees’ payroll records are accurate, compliant, and ready for submission.
At Labournet, we understand that people are at the heart of every business, and we’re here to help you ensure that your payroll processes empower your workforce.
Your payroll system should provide you with the tools and insights to identify and rectify discrepancies before year-end. Key areas to focus on include:
- Employee Details: Ensure ID numbers or passport numbers are captured accurately. Correct birth dates are essential, particularly for employees using passport numbers, to ensure compliance.
- Employee Addresses: Accurate address details are vital, especially during the IRP5 submission period, to reflect the correct geographic specification.
- Tax Numbers: Tax numbers are mandatory, particularly for employees withdrawing funds due to exit processes. Ensuring these details are updated prevents delays and errors.
By prioritising accurate and complete employee information, you not only meet regulatory requirements but also demonstrate your commitment to supporting your team.
Another critical area to review is the correct linking of SARS source codes to payroll transactions. Misalignment here can cause challenges for your employees, such as recalculations on personal tax returns. Labournet’s payroll system ensures compliance and reduces the risk of errors, giving you and your team peace of mind.
When managing employees who have been transferred between SARS-registered entities, proper verification of IRP5 dates and financial figures is crucial. This ensures employees receive accurate tax certificates, maintaining their confidence in your organisation.
Compliance Builds Trust
A compliant and efficient payroll system doesn’t just benefit your business—it builds trust with your employees by ensuring they are treated fairly and in accordance with the law. To achieve this:
- Cross-check EMP201 submissions to SARS against payroll system records to avoid discrepancies.
- Ensure PAYE, SDL, and UIF payments are up to date, avoiding penalties and ensuring your employees’ contributions are accurately recorded.
At Labournet, we understand that a business’s success is built on its people. By ensuring your payroll processes prioritise accuracy and compliance, you support your employees and foster a culture of trust.
Need Help?
For specialist assistance in closing off the 2025 tax year and preparing for the year ahead, reach out to Labournet by scheduling an appointment here: https://www.labournet.com/contact-us/
