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2009 Year End Guide

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					                       2009 Year End Guide
                Your guide to easy tax-year-end processing




EXCLUSIVE TO PASTEL EVOLUTION PAYROLL CUSTOMERS              Page | 24
                        PASTEL EVOLUTION PAYROLL TAX-YEAR-END GUIDE
                                   ARE YOU PREPARED FOR THE UPCOMING TAX YEAR END?

There’s so much to do – organise your financial information for your Accountant, submit tax returns, print and submit your PAYE payment
summaries and more - it can all become a little overwhelming!

We have prepared this step-by-step guide to ensure that your year-end procedure on Pastel Evolution Payroll is as smooth and trouble-free as
possible. We have provided you with comprehensive, easy-to-follow instructions as well as screen illustrations to assist you in completing your
year end in good time.

The year-end procedures for Pastel Evolution Payroll outline the printing of relevant reports according to your company and legislative
requirements as well as backup and restore procedures.

This Pastel Evolution Payroll year-end guide explains:

    Printing of IRP5 and IT3(a) Certificates and submitting the electronic files to SARS using e@syFile.
    Reconciling tax paid over to SARS with the tax on the Tax Certificates on e@syFile.
    Printing hard copy reports for your own records.
    Making backups.
    Setting up your company for the new tax year.

Please ensure that your returns are submitted to the Receiver of Revenue within 60 days after the end of the tax year unless otherwise specified
by the Minister of Finance.

Should you require further assistance you can contact our Support Team on +27 11 304 4360 or e-mail us at support@evolutionpayroll.co.za.

Should you require an on-site consultant, please contact your Pastel Evolution Payroll Certified Installer or our Consulting Team on +27 11 304
4340. Alternatively, e-mail us at consulting@evolutionpayroll.co.za.

Extended operating hours (from 16 February 2009 – 30 April 2009):

     Mondays to Thursdays: 07:00 to 18:00.
     Fridays: 07:00 to 17:00.
     Saturdays: 09:00 to 13:00.

   This guide is designed to assist you in the correct processing of your tax year end to prevent unnecessary pressure and frustration. This is
  another means of continuing to support the growth of your business and development of our ongoing partnership by helping you to take your
                                                            business beyond payroll!




                                                                                                                                         Page | 1
                       PASTEL EVOLUTION PAYROLL TAX-YEAR-END CHECKLIST
                        PLEASE EXECUTE EACH STEP THOROUGHLY AND TICK THE STEPS AFTER COMPLETION
Before commencing with the year-end procedures, you are required to complete your processing in the final period. Considering that the last period
is when final changes can be made, you need to perform a tax reconciliation to ensure that the total tax in Pastel Evolution Payroll corresponds to
what was paid over during the year.

Once you are confident that the tax is calculated correctly, you are required to print all Monthly, Weekly or Fortnightly Reports.

When performing the Period Close, verify that the period you are closing is the final period in the tax year. This can be verified in Maintenance |
Common | Company Details | Payroll Periods, allowing you to establish which periods have not been closed.

Adequate backups of the company data must be kept, should any changes occur at a later stage. This step is essential and must be
followed for every company you will perform a year-end on.

                     PLEASE EXECUTE EACH STEP THOROUGHLY AND TICK EACH STEP UPON COMPLETION

The following procedures will be covered in this guide:

   1.     Making a backup.
   2.     Performing the final Period Closes.
   3.     Making a backup for Tax Certificate purposes.
   4.     Locating the Year-end Company.
   5.     Performing the Standard Year End.
   6.     Setting up the Payroll Periods for the new tax year.
   7.     Creating the IRP5 / IT3(a) export files.
   8.     Submitting your electronic export files to SARS using e@syFile and printing tax certificates.




                                                                                                                                          Page | 2
                                                       STEP 1 - MAKING A BACKUP

Ensure that Pastel Evolution Payroll is closed before following the subsequent steps.

a.       Open Pastel Evolution Payroll Database Management.
                                                                                                                                         
         If Pastel Evolution Payroll is installed on a network, Pastel Evolution Payroll Database Management will be installed on the
         server computer and that is where the backup must be made.

b.       Once Pastel Evolution Payroll Database Management is open, select the „+‟ sign next to [computer name] under “SQL
         Server Group” on the left hand side of the screen. In some cases the [computer name] may be replaced by “(local)”.
                                                                                                                                         
         The various company databases will be displayed in the tree on the left hand side of the screen:




                                                                                                                                        Page | 24
                                                                                                                                         Page | 3
c.   Right click on the company that you would like to backup. Select the Backup Database option from the list displayed.
                                                                                                                                  




d.   Please ensure that the following options have been selected:
                                                                                                                                  




              Database – complete: This will back up the entire Company Database (Recommended).
              Truncate Log: This will compress the log file to save space on your hard drive.
              Overwrite backup: This will ensure that no partial backups with the same name exist.
              Destination: This must always be on a hard drive. At a later stage you may use external CD writing software to
              write the backup to CD. Please ensure that you give each backup a unique name. The name should contain the
              period date you are closing, which will prevent the backup from overwriting any other backups as well as for easy
              identification of the backup.




                                                                                                                                  Page | 4
 e.       Select OK to start the backup process. Please Note: This process may take several minutes to complete. Please wait
          until the process is completed.
                                                                                                                                   
 f.       A message is displayed to inform you that the backup process has been completed successfully.
                                                                                                                                   




 g.       Select OK. You may exit Pastel Evolution Payroll Database Management.
                                                                                                                                   
Please Note: Steps c – f must be followed for each company the year end process is going to be performed on.

                                          STEP 2 - PERFORMING THE FINAL PERIOD CLOSES
 a.       Open Pastel Evolution Payroll and log into your current company.
                                                                                                                                   
 b.       Select Transactions | Payroll | Period Close:
                                                                                                                                   




          If this is the correct period to be closed, select OK. Please Note: This process may take several minutes. Please wait
          while the process completes. Should your company make use of different pay frequencies (Monthly Salary,
          Monthly Wages, Fortnightly Wages or Weekly Wages). This process has to be repeated for each of the pay
          frequencies.

 c.       The following message is displayed once you have successfully closed the final period in the tax year:
                                                                                                                                   




          Select OK.




                                                                                                                                   Page | 5
 d.       Once the Period Close has completed successfully, the following message will be displayed:
                                                                                                                                         




          Select No. It is not necessary to view the log file at this stage.


Please Note: Steps b – d must be followed for each pay frequency’s period that has to be closed. When performing step b ensure that
you change the Pay Type to the required pay frequency.

                                      STEP 3 - MAKING A BACKUP FOR TAX CERTIFICATE PURPOSES

 Ensure that Pastel Evolution Payroll is closed before following the subsequent steps.

 a.       Open Pastel Evolution Payroll Database Management.
                                                                                                                                         
          If Pastel Evolution Payroll is installed on a network, Pastel Evolution Payroll Database Management will be installed on the
          server computer and that is where the backup must be made.

 b.       Once Pastel Evolution Payroll Database Management is open, select the „+‟ sign next to [computer name] under “SQL
          Server Group” on the left hand side of the screen. In some cases the [computer name] may be replaced by “(local)”.
                                                                                                                                         
          The various company databases will be displayed in the tree on the left hand side of the screen:




                                                                                                                                         Page | 6
c.   Right click on the company that you would like to back up for Tax Certificate purposes. Select the Backup Database option
     from the list displayed:
                                                                                                                                  




d.   Please ensure that the following options have been selected:
                                                                                                                                  




                                                                            PLEASE NOTE: The name specified for the
                                                                            backup must clearly indicate that this is your
                                                                            Year-end backup for the Tax Year 2009.




              Database – complete: This will back up the entire Company Database (Recommended).
              Truncate Log: This will compress the log file to save space on your hard drive.
              Overwrite backup: This will ensure that no partial backups with the same name exist.
              Destination: This must always be on a hard drive. At a later stage you may use external CD writing software to
              write the backup to CD. Please ensure that you give each backup a unique name. The name should contain the
              period date you are closing, which will prevent the backup from overwriting any other backups as well as for easy
              identification of the backup. In this case you can add Year End at the end.



                                                                                                                                  Page | 7
e.   Select OK to start the backup process. Please Note: This process may take several minutes to complete. Please wait
     until the process is completed.
                                                                                                                                 
f.   A message is displayed to inform you that the backup process has been completed successfully.
                                                                                                                                 




g.   You now have to restore your database with a unique name to enable you to use it for the printing Tax Certificates. Right
     click on your server name (your [computer name] or (local)) and select the Restore Database option:
                                                                                                                                 




                                                                                                                                 Page | 8
h.   In the Restore as database field, enter the name of the new company database. It must be easily identifiable as the copy of
     your original company which you are going to use to print Tax Certificates, e.g. Salaries Year End 2009.
                                                                                                                                   
     After completing the above, select the backup file you named in step 3d:




     Select the Options Tab and ensure that Overwrite the existing database is selected:




     Select OK.

i.   Once you receive a notification that the restore operation has completed, select OK. You may exit Pastel Evolution Payroll
     Database Management.
                                                                                                                                   




                                                                                                                                   Page | 9
                                          STEP 4 - LOCATING THE YEAR END COMPANY
a.   Once you have restored the year-end company, you are required to locate it in order to log into it once you are ready to print
     your tax certificates. Open the Pastel Evolution Payroll Login Screen:
                                                                                                                                       




b.   Select the Locate option.
                                                                                                                                       
c.   On the Locate Pastel Evolution Payroll Database screen, select the following options:
                                                                                                                                       


                                                                                                  You may select your
                                                                                                  [computer name] or
                                                                                                  (local) in this field. If your
                                                                                                  databases are stored on a
                                                                                                  Server, you will select the
                                                                                                  Server’s name in this field.




                                                                                                  Make sure that you select
                                                                                                  your newly restored Year
                                                                                                  End Company in this field.



d.   Select Next.
                                                                                                                                       




                                                                                                                                      Page | 10
e.   On this screen, you don’t need to make any changes unless specifically required by your setup. If you are using a Common
     Database other than the default Pastel Evolution Payroll Common Database, you may deselect the “Use Common
                                                                                                                                 
     database on the same server” option and select your required Common Database. If not, leave the “Use Common
     database on the same server” selected.




f.   Select Finish.
                                                                                                                                 
g.   The Login screen is now displayed, listing the newly located Year-end company:
                                                                                                                                 




h.   Do not log into the Year End company yet. Log into the company that you would like to roll over into the new tax year.
     (The Original Company i.e. Salaries in the case of this example)
                                                                                                                                 




                                                                                                                                Page | 11
                                      STEP 5 - PERFORMING THE STANDARD YEAR END
a.   Select Transactions | Payroll | Standard Year End. The following screen will be displayed:
                                                                                                                                    




     You have the following options available for selection:

               Delete Discharged Employees - This will allow you to delete any employees that have been discharged
               throughout the 2008/2009 tax year.
               Delete Inactive Employees - This will delete all employees that you have made inactive throughout the
               2008/2009 tax year.
               Reset Employees Tax Directives – This will reset the tax method of all employees currently on Tax Directives in
               order to use standard tax scales.
               Update Directors Remuneration - If an employee is set up as a Director, the remuneration for the current tax
               year will be changed to Last Year’s Remuneration. This is what the Directors’ Tax will be based on in the new tax
               year.
               Reset Director‟s Additional Remuneration - This will reset the amount of Director’s Additional Remuneration to
               zero.

     PLEASE NOTE: If your company is required to submit Skills and Equity Reports, DO NOT delete inactive and/or
     discharged employees.

     If you do not want to select any of the above options, for example you do not want to delete your inactive employees,
     deselect the applicable option. When the Standard Year End is performed, Pastel Evolution Payroll will not delete the
     inactive employees when this option is deselected.

b.   Once you have made the appropriate selection, select OK to start the year-end process.
                                                                                                                                    
c.   The following message will be displayed:
                                                                                                                                    




     Ensure that all year end reports have been printed and that a backup has been made. If you have printed all the applicable
     reports, select Yes to continue.




                                                                                                                                   Page | 12
d.   Once the year-end process has been completed, the following message will be displayed:
                                                                                                                                     




     Select No, as it is not necessary to view the log file at this stage.

e.   The employee and company information will still be available in the company after the Standard Year End has been
     completed. You are, however, required to set up the new Payroll Periods for the company in order to process the new tax
                                                                                                                                     
     year.


                          STEP 6 - SETTING UP THE PAYROLL PERIODS FOR THE NEW TAX YEAR
a.   After the Standard Year End has been completed, your Payroll Periods will be reset and the old periods will be
     transferred to the History files. You are now required to set up your Payroll Periods for the new tax year. To do this,
                                                                                                                                      
     select Maintenance | Common | Company Details and then select the Payroll Periods tab.

b.   Select the tax year start date and end date. This will always be from 1 March to 28/29 February (depending on whether it is
     a leap year) as illustrated below.
                                                                                                                                      
c.   After the tax year has been set, you are required to set up the new Payroll Periods. This procedure must be performed for
     all required pay frequencies.
                                                                                                                                      
d.   To set up the new pay periods, select the end date of the first pay period that the employees of that specific pay frequency
     will be paid, i.e. 2009/03/31 for monthly employees.
                                                                                                                                      




                                                                                                                                    Page | 13
e.   Once the date has been correctly chosen, select Generate. After you have generated all your Payroll Periods, your screen
     should list your generated dates as follows:
                                                                                                                                  




     If you have generated incorrect Payroll Periods, you must Cancel the screen and restart at step 6a.

f.   Once you have generated the Payroll Periods for all required Pay Types and are satisfied with your dates, select OK.
                                                                                                                                  
g.   A message will be displayed confirming that the tax year and Payroll Period settings are final:
                                                                                                                                  




     If you are sure that your Payroll Periods are set up correctly and you wish to save, select Yes to continue.

h.   You are now ready to process your first period in the 2009/2010 tax year.
                                                                                                                                  




                                                                                                                                Page | 14
                                      STEP 7 - CREATING THE IRP5/IT3(a) EXPORT FILES
a.   To create your IRP5/IT3(a) electronic submissions for SARS, log into the Year End Company. (Not the company for
     which you have just set up Payroll Periods for the 2009/2010 year.)
                                                                                                                                    
b.   Select Reports | Payroll | Statutory Reports | IRP5/IT3 Tax Certificates:
                                                                                                                                    




c.   Select which Pay Periods should be included when the Electronic File is generated. You may submit all your Pay Periods
     in the same file.
                                                                                                                                    
d.   To create the SARS export file, select the Electronically Generated Certificates option.
                                                                                                                                    
e.   If certain employees should be excluded from the export file for a specific reason, ensure that you exclude these employees
     by only selecting the required employees on the Employees tab. If this selection is left blank, all employees fitting the
                                                                                                                                    
     criteria selected at the Employees option will be included in the electronic file.

f.   Run Options: In this section, you are required to select the type of export file. Create a Test file first to import into
     e@syFile. This will ensure that the file is validated in the SARS system. You will only create a Live file after you have
                                                                                                                                    
     imported your Test file successfully.

g.   Print Options: You may deselect the Print Tax Certificates option, unless you would like to print and check the tax
     certificates at this stage. It is recommended that you print the Tax Certificates for verification purposes.
                                                                                                                                    




                                                                                                                                   Page | 15
h.   Export Options: Select Create Export File. You must also set the generation number, by default you can set this to 1. In
     the Save To Drive field, select a destination to where the export file is to be saved. All the export files are created with the
                                                                                                                                         
     same name; therefore if you select a folder that already contains an export file, the original file will be deleted and replaced
     with the new one:




     Once the correct options have been selected, select the Preview button.




                                                                                                                                        Page | 16
i.    You may now receive a message prompting you that problem areas exist in your Payroll:
                                                                                                                                  




      PLEASE NOTE: If you do not receive this message, it means that your settings have passed the most common
      SARS format validations. It does not mean that your submission file will be successfully imported into e@syFile.

      When you select OK, a list of problem areas will be displayed in the Message Log Viewer. This can be either missing or
      invalid information or errors.

      Select the „+‟ sign next to the Group Time item. Always look at the latest Group Time item on the list. That will ensure
      that the most recent errors are displayed.




     In this example there is an employee who has made provident fund contributions, but no provident fund has been selected.
     You will now be able to go to the Maintenance | Payroll | Employees section and select the appropriate
     Pension/Provident Fund before starting at step 7b again.




                                                                                                                                 Page | 17
j.   Once all the validation errors have been corrected, the Payroll IRP5/IT3 Export Errors message will not be displayed. The
     Message Log Viewer is displayed immediately. Select Close.
                                                                                                                                  




k.   After you close the first Message Log Viewer screen, you may receive the following message:
                                                                                                                                  




     This message means that all the standard validations passed but there may be some areas that may cause problems. You
     may select Yes to continue. Any further problems will be identified when your file is imported into e@syFile. A second
     Message Log Viewer will be displayed. This will contain the Payroll IRP5/IT3 Certificates Export Totals.




                                                                                                                                 Page | 18
l.   Once the export totals have been verified, close the Message Log Viewer window. The tax certificates will now be
     displayed on the screen. Your export file, called IRP5.09 will also be in the location you selected to create it in:
                                                                                                                                       




        STEP 8 - SUBMITTING YOUR ELECTRONIC EXPORT FILES TO e@syFile AND PRINTING TAX CERTIFICATES
a.   Follow these easy steps to complete your electronic annual PAYE submission to SARS:
                                                                                                                                        
              Open e@syFile by double-clicking the desktop icon.

              Login using your login details created while setting up e@syFile. PLEASE NOTE: Pastel Evolution Payroll
              cannot provide these details to you. If you have lost your login details, please make use of the Forgot
              Password feature or contact SARS e@syFile support.

              Click on “Import Payroll File” to upload the Electronic IRP5/IT3(a) Certificates file.
             a. Browse to the location you selected to create your export file in to find the IRP5.09 file created from Pastel
                    Evolution Payroll.
             b. You will be prompted that the Payroll File is ready to be imported, you may select OK to continue with the
                    import.
             c. If the IRP5.09 file has been created as a Test, the file will be validated but not uploaded. If any validation
                    errors are generated, correct these in Pastel Evolution Payroll before generating a new Electronic
                    IRP5/IT3(a) Certificate file by following step 7 again. If you import file fails validation, you may view which
                    errors occurred in e@syFile by selecting Utilities > Import Payroll File log and double-clicking on the
                    applicable file details.
             d. If the IRP5.09 file has been created as a Live submission, the file will be validated and uploaded to the
                    e@syFile system if no errors were detected. Please note that you can generate and upload as many Final
                    (Live) submissions as necessary.


                                                                                                                                      Page | 19
b.   To view the certificates that have been uploaded, access the “Tax Certificates” menu.
                                                                                                                                    
          Click on the Company Name dropdown to select the relevant employer.

          Click on the Transaction Year dropdown to select the relevant year’s data you wish to view. The following screen will
          be displayed:




         If CSV editing is enabled in e@syFile, click on View to edit an employee’s tax certificate details should you wish to.




                                                                                                                                  Page | 20
c.   Next you have to complete the EMP501 Reconciliation Declaration. You first have to specify your company‟s UIF
                                                                                                                               
     and SDL reference numbers. To do this, access the “Employer Admin” menu to view and edit the employer‟s
     details that were uploaded with the electronic tax certificates.

           Click on “Edit Employer Detail” to access details uploaded from Pastel Evolution Payroll.

           Click on the Company Name dropdown to select the relevant employer from the list. The following screen will be
           displayed:




           The employer detail included in the IRP5.09 file will be displayed. It is important to complete the SDL and UIF
           Reference Number fields at this stage to allow SDL and UIF payments to be reconciled via the e@syFile system.
           Use the PAYE Reference Number imported from Pastel Evolution Payroll and replace the first number (which
           should be a 7) with L in the SDL Reference Number field. Do the same for the UIF Reference number, but replace
           the first number (which should be a 7) with a U.

           Click on “Update Employer” to save the changes.




                                                                                                                             Page | 21
d.   Once all electronic tax certificates have been uploaded and the employer details have been updated, you should
                                                                                                                               
     continue with the employer self assessment process.

           Access the “Reconciliation Declaration” menu to complete the EMP501 Reconciliation.

           Click on the Company Name dropdown to select the relevant employer. The following screen will be displayed:




           Use the EMP501 Reconciliation Report printed from the Year End Company in Pastel Evolution Payroll to complete
           the employer’s self assessment form:




           Please note that the e@syFile EMP501 Reconciliation does not allow decimal values, therefore the amounts
           entered must be rounded to the nearest Rand.

           Once you have entered the monthly liabilities for PAYE, SDL and UIF as well as the total payments made towards
           SARS in respect of each month, click on “Self Assess” to calculate any difference as well as the final Declared
           Liability.




                                                                                                                             Page | 22
Please note that the Total SDL and UIF value of Tax Certificates are estimated values calculated according to a
formula which is fundamentally flawed. These totals can therefore be overridden and adjusted to a more accurate
value based on the information processed in Pastel Evolution Payroll.

Once you agree with the result of the self assessment, click on “Submit” to generate your electronic PAYE
submission.
 i.   Submit via eFiling – select a directory where the electronic submission must be created. This directory will
      contain PDF copies of tax certificates, the EMP501 form in PDF as well as the encrypted PAYE submission
      file which can be submitted via the internet once logged into the eFiling website.
ii.   Submit via electronic medium – select a directory where the electronic submission must be created. This
      directory will contain PDF copies of tax certificates, the EMP501 in PDF format as well as the encrypted
      PAYE submission file. Print and sign the EMP501 and write the encrypted electronic submission to CD.
      Deliver the CD and signed copy of your EMP501 to your local SARS branch.




                                                                                                                     Page | 23
e.   The final step is to print your employees’ tax certificates and to provide each employee with a copy of their 2009 IRP5
                                                                                                                                      
     and/or IT3(a) certificate. These certificates can be printed from Pastel Evolution Payroll or from the e@syFile system.
     Pastel Evolution Payroll has an easy, automated process for printing all Tax Certificates at once, so it is recommended that
     you make use of the Pastel Evolution Payroll tax certificates.

     To print the tax certificates from Pastel Evolution Payroll, open your Year End Company (the one the IRP5.09 file was
     created from), choose the Report | Payroll | Statutory Reports | IRP5/IT3 Tax Certificates menu option. All the other
     options should be the same as when the IRP5.09 file was created, it is however not necessary to select the “Create Export
     File Option”. After completing all the relevant information on the screen, click on the Preview button. You should not
     experience any Message Log Errors preventing you from viewing your tax certificates and a Message Log Viewer will be
     displayed. This will contain the Payroll IRP5/IT3 Certificates Export Totals. You may print these totals for filing purposes.
     You may close the Message Log Viewer whereafter the Tax Certificates will be displayed:




     Select the Printer icon on the top left hand side of the window to print the tax certificates.




                                                                                                                                     Page | 24
Your should now keep a copy of each tax certificate for yourself as well as hand one copy of their Tax Certificate to each
employee:




                 Ensure that you utilise our Pastel Payroll IRP5 tax certificate stationery in order to provide your

       !
                 employees with professional tax certificates.

                 Contact our Pastel Payroll Stationery Team on +27 11 304 4260, alternatively e-mail us at
                 stationery@pastelpayroll.co.za


                                                                                                                             Page | 25
                                                          ADDITIONAL ASSISTANCE

If you require additional assistance, simply follow the steps below:

                                                               STEP 1 – E-MAIL US

Due to the high call volumes we experience during the year-end period, you can e-mail us at support@evolutionpayroll.co.za. We will respond
to your e-mail enquiry within 24 hours. Please include your serial number, name and surname as well as contact details on all e-mails to ensure
a prompt response.

                                                             STEP 2 – CONTACT US

Contact us on +27 11 304 4360 during the following operating hours (16 February 2009 – 30 April 2009):

          Mondays to Thursdays: 07:00 to 18:00
          Fridays: 07:00 to 17:00
          Saturdays: 09:00 to 13:00




                                                                                                                                       Page | 26

				
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