Year End Guide

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					                                   Year End Guide




                                             Your guide
                                       to easy year end
                                             processing




EXCLUSIVE TO PASTEL EVOLUTION PAYROLL CUSTOMERS
                           PASTEL EVOLUTION PAYROLL TAX YEAR END GUIDE

    Are you looking forward to the end of this financial year?


There’s so much to do – organise your financial information for your Accountant, the submission of tax returns,
printing and submission of your PAYE payment summaries and more - it can all get overwhelming!


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


The Year End procedure for Pastel Evolution Payroll outlines the printing of relevant reports according to your company’s
and legislative requirements, merging database management, backup and restore procedures.


The Pastel Evolution Payroll Year End guide includes:


•     Printing of IRP5 and IT3(a) Certificates and submitting the electronic files to SARS.
•     Reconciling tax paid over to SARS with the tax on the Tax Certificates.
•     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.


Should you require further assistance you can contact our Support Team on (011) 895 2301 or e-mail us at
support@pastelpayroll.co.za.


Should you require an on-site Consultant, contact your Pastel Evolution Payroll Certified Installer or our Consulting
Team on (011) 895 2301. Alternatively, e-mail us at consulting@pastelpayroll.co.za.



      This guide is designed to assist you in the correct processing of your Tax Year End to prevent unnecessary
      pressure and frustration, as another means of continuing to support the growth of your business and development
      of our ongoing partnership.




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                            PASTEL EVOLUTION PAYROLL TAX YEAR END CHECKLIST

Before commencing with the Year End procedures, you have to complete your processing in the final period. Considering
that the last period is when final changes can be made, you need to do a tax reconciliation to ensure that the total
tax in Pastel Evolution Payroll agrees to what was paid over during the year.

Once you are confident that the tax is correct, you need 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 a perform Year End for.



           PLEASE EXECUTE EACH STEP THOROUGHLY AND TICK EACH STEP AFTER COMPLETION

                                                    PROCEDURES

 1a.      Ensure that Pastel Evolution Payroll is closed before following the subsequent steps.

  b.      Open Pastel Evolution Database Management. If Pastel Evolution is installed over a network,
          Pastel Evolution Database Management will be installed on the server computer and is where
          the backup must be made from.

  c.      Once Pastel Evolution Database Management is open, select the ‘+’ sign next to “(local)” on
          the left of the screen. In some cases the “(local)” might be replaced by your actual computer
          name.




  d.      The various company databases will be displayed in the tree on the left of the screen as illustrated
          above.

  e.      Right click on the company that you would like to backup. Select the Backup Database… option
          from the list.




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f.   Please ensure that the following options have been selected:




     •   Database – complete: This will backup the entire Company Database (Recommended).
     •   Truncate Log: This will compress the log file to save space.
     •   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 and will also identify the backup easily.

g.   Click OK to start the backup process.

h.   A message is displayed to inform you that the Backup process has completed successfully.
     (This process may take several minutes. Please wait while the process completes).




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i.    Click on OK. You may Exit Pastel Evolution Database Management.

2a.   Open Pastel Evolution in order to log into your company. Select Transactions | Payroll | Period
      Close.

b.    If this is the correct period to be closed, click on OK.
      (This process may take several minutes. Please wait while the process completes.)




c.    The following message is displayed on your screen once you have successfully closed the final
      period in the Tax Year:




      Click on OK.

d.    Once the Period Close has completed successfully the following message will be displayed:
      ‘Payroll Period Close Completed. Would you like to view the Log File now?’




e.    Click on No. It is not necessary to view the log file.

f.    Should it be necessary to perform a Period Close for more than one pay frequency, you are
      required to do a Pay Period Selection to change the pay frequency. Select Maintenance | Payroll
      | Pay Period Selection. Select the next Pay Type, for example Monthly Salary, and click on OK
      to confirm the selection.




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3a.   Once all pay periods have been closed successfully, the company will be in Year End.

      It is now necessary to make a Copy Company as the original company will serve as the backup
      company and the Copy Company will be rolled over into the new Tax Year.

      Please Note: No changes to any transactions can be made in the Year End period. You will still
      be able to edit company/employee details for Electronic Tax Certificate submission purposes.
      If changes to Transactions are required, you will have to restore the backup that was made of
      the last open period in February.

b.    In the Original company, Select Administration | System Tools | Copy Company.

c.    Click the Company Tab. Change the New Company Name field to display your full company
      name, this will be included in all reports and export files.




d.    It is recommended that you select the Full Copy (including transactions) option to ensure that
      the company is copied in full.




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e.   It is recommended that all the applicable pay frequencies are selected on the Payroll Types Tab.




f.   Once the above steps have been completed, click on Next.

g.   A screen will be displayed prompting for the New Database Name. Ensure that you rename the
     database so that it is identifiable as the new Tax Year’s company.




h.   Click Next.




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i.   A screen allowing you to select the Tax Tables will be displayed. South Africa should be selected
     for South African Tax Tables. Should you not be using the South African Tax Tables, select the
     applicable Tax Tables to your company by selecting the correct area on the map as illustrated.




j.   Once your country has been selected, click Next.

k.   Click Finish. Pastel Evolution will now create the New Company Database.




l.   Pastel Evolution will start copying all the information into the Copy Company once your company
     is copied.




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m.    Click Finish to start the Copy Company process.




n.    Once the Copy Company process is complete, the following message is displayed:
      “No Errors were found, would you like to view the log file now?”

o.    Click on No, as it is not necessary to view the log file.




      You have successfully created a Copy Company!

4a.   Once you have created the Copy Company you still need to locate the Copy Company in order
      to log into it once the login screen is displayed.

      To Locate the Copy Company, log out of the current company by selecting File | Exit and Log
      off. This will return you to the main login screen as illustrated.

b.    Select the Locate… option.




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c.    On the Edit Pastel Evolution Database Registry screen select the following options:




d.    Select SQL Server Name as “(local)” for a Server/Stand Alone computer, use the Server Name
      if you are running on a Network and locating the company from the workstation.

e.    If you are running on a Windows XP computer select the Windows NT Authentication option.

f.    If you are running on Windows 98 or Windows ME operating systems select the SQL Server
      Authentication option, enter the Login Name as ‘sa’ and the SQL Password used when Pastel
      Evolution was installed.

g.    In the Database Name field select the drop down arrow as illustrated above. A list of companies
      will be displayed on your screen, select the newly created Copy Company from the list.

h.    Click Next.

i.    Select Finish.

j.    The Login screen is now displayed allowing you to log into the Copy Company.

5a.   In the Copy Company select Transactions | Payroll | Standard Year End.




b.    You have the following options:

      •   Delete Discharged Employees – This will allow you to delete any employees that have been
          discharged throughout the 2006/2007 Tax Year.




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      •   Delete Inactive Employees – This will delete all employees that you have made inactive
          throughout the 2006/2007 Tax Year
      •   Reset Employees Tax Directives – This will reset the tax method of all employees on Tax
          Directives to standard tax scales.
      •   Update Directors Remuneration – If an employee is setup as a Director, the remuneration
          for the Current Tax Year will be changed to Last Years Remuneration. This is what the
          Directors Tax will be based on in the new Tax Year.
      •   Reset Directors Additional Remuneration – This will reset the amount of Directors Additional
          Remuneration to zero.

      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 run Pastel
      Evolution will not delete the inactive employees.

c.    Once you have made the appropriate selection, click OK to start the Year End Process.

d.    Ensure that all Year End reports have been printed and that a backup has been made.
      Select Yes to continue as illustrated below.




e.    Once the Year End process has executed, a message will be displayed on your screen:
      ‘The standard Year End has been completed. Would you like to view the log file now?’ Click No.




f.    The Employee and Company information will be available in the company after the Standard
      Year End has been completed. It is required is to setup the new Payroll Periods for the company
      in order to process for new Tax Year.


6a.   After the Standard Year End has been completed, your company periods will be reset and the
      old periods will be transferred to the History files. You will now have to set up your Payroll
      Periods for the new Tax Year.


      Select Maintenance | Common | Company Details, Select the Payroll Periods Tab.


b.    Select the Tax Year Start Date and End Date. This will always be 1 March 2007 to 29 February
      2008 as illustrated below.


c.    After the Tax Year has been set; the new Payroll Periods have to be set up. The procedure applies
      to all Pay Frequencies.




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d.    To set up the new periods, select the end date that the employees of that specific Pay Frequency
      will be paid, i.e. 2007/03/31 for monthly employees.

e.    Now that the date has been selected, select Generate.

f.    Once you have generated the Pay Periods for all required Pay Types, click OK.

g.    A message will be displayed on you screen prompting you that the Tax Year setting is final.
      If you are sure that your periods are setup correctly. Click OK to save.

h.    You are now ready to process your first period in the 2007/2008 Tax Year Company.




7a.   To create your IRP5/IT3(a) electronic submissions for SARS:
      Log into the correct company.

b.    Select Reports | Payroll | Transactions | IRP5\IT3a Tax Certificates to create the Electronic Disk
      or to print your employees Tax Certificates.

c.    To create the SARS export file, select the Electronically Generated Certificates option.

e.    Select which Pay Types should be included when the Electronic Disk is generated.

f.    Pay Periods & Employees: If certain employees should be excluded, make use of the From and
      To selection. If this selection is left open, all employees will be included in the electronic file.

g.    Run Options: In this section, the type of export file has to be selected. A Test disk has to be
      created and submitted to SARS first. Should this file be rejected, amendments should be made
      and a new Test disk has to be created and submitted. Unlimited test files may be submitted.
      Only once the Test disk has been accepted by SARS are you allowed to submit a Live disk. Only
      4 Live submissions are allowed to be submitted, thereafter only manual Tax Certificates will be
      accepted.

h.    Print Options: When creating the export files, select the Create Export File option, you may
      deselect the Print Tax Certificates option, unless you would like to print and check the certificates.




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i.   Export Options: This is where the Generation number is set. (The number of the disk submitted
     to SARS). Select 1 for the 1st Test disk, 2 for the 2nd, etc. Upon submitting the LIVE disks,
     the generation number will have to be reset to 1. In the Save to Drive field, select a destination
     to where the export file is to be saved. This will normally be the a:\ drive. All the export files
     contain the same name, therefore if an export file exists in a directory that contains the same
     name, the original file will be overwritten.

     Once the correct options have been selected, click on the Preview button.




j.   Click OK. The Message Log Viewer window will be displayed. Missing or invalid information will
     be displayed.




     Click the ‘+’ sign next to the Date and Time that was attempted to print the IRP5’s. Always look
     at the latest item in the list which will result in only the most recent errors being displayed.




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k.   In this example there is an employee who has made pension fund contributions, but no pension
     fund has been selected. You will now be able to go to the Maintenance | Payroll | Employees
     section and select the appropriate Pension/Provident Fund.

l.   Once all the information has been corrected the Payroll IRP5/IT3(a) error message will not
     be displayed. The Message Log Viewer will be displayed straight away. Click on Close.




m.   A second Message Log Viewer will be displayed; this will contain the Payroll IRP5/IT3 Export
     Totals.




n.   Once the export totals have been verified, close the Message Log Viewer window. The Tax
     Certificates will now be displayed on the screen.

o.   To print the Tax Certificates select the Printer icon on the top left of the window.




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8.   During the above process the Electronic Export File was created and saved to the destination
     that you selected in the Save To Drive option. Submit this file to the Receiver of Revenue. Once
     the Test disk has been accepted by the Receiver of Revenue, follow the same procedures starting
     from Step 7 to create the Live Disk.

     To obtain a list of submission media accepted by your local SARS office (i.e. CD, Stiffy Disk
     or E-mail), kindly contact them for more information.

     You have now successfully completed your Pastel Evolution Payroll Year End!




                                                                                           2007 Year End Guide | 14

				
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