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2008 Year End Guide

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					                         2008 Year End Guide

                                           Your guide
                                      to easy year end
                                           processing




EXCLUSIVE TO PASTEL PARTNER PAYROLL CUSTOMERS
                           PASTEL PAYROLL TAX YEAR END GUIDE (2008)

    Are you looking forward to the Tax year End?

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


That’s why we’ve prepared this step-by-step guide to make your year-end procedure as smooth and trouble free as
possible. We provide you with comprehensive, easy-to-follow instructions and screen illustrations to assist you in
completing your Year End in good time.


The year end procedures for Pastel Payroll outline the printing of relevant reports according to your auditor or company’s
requirements and backing up and restore procedures.


The Pastel Payroll Year End procedure includes:


•     Printing of IRP5 and IT3(a) Certificates and submitting the electronic files to SARS.
•     Reconciling the tax paid over to SARS with the tax on your employees’ Tax Certificates.
•     Completing the annual Occupational Injuries and Diseases (OID) Return for assessment.
•     Printing hard copy reports for your own records.
•     Creating a copy company for record purposes.
•     Making proper backups.


Please note that all companies are required by law to submit their returns to SARS, within 60 days after the end of
the tax year unless otherwise specified by the Minister of Finance.


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

Step 1 - Visit Website: Visit www.pastelpayroll.co.za for practical year end problem solving tips, frequently asked
questions, etc.

Step 2 - E-mail us: Due to the high call volumes we experience during the year end period, you can e-mail us
at support@pastelpayroll.co.za. We will return your e-mail enquiry within 24 hours. Please include your company
name, name and surname as well as contact details on all e-mails to ensure a prompt response.

Step 3 - Contact us: Contact your Pastel Partner Payroll Certified Installer, alternatively contact us on
+27 11 304 4300 during the following operating hours:

    • 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, as another means of continuing to support the growth of your business and development of our
    ongoing partnership and helping you to take your business BEYOND PAYROLL!




                                                                                                     2008 Year End Guide | 1
                                 PASTEL PAYROLL TAX YEAR END CHECKLIST

            PLEASE EXECUTE EACH STEP THOROUGHLY AND TICK EACH STEP AFTER COMPLETION

                                                    PROCEDURES

 .
Step   1.   Printing the final reports and performing the final pay period update.
Step   2.   Printing Year End reports and performing the Year End update.
Step   3.   Printing tax certificates.
Step   4.   Exception report errors.
Step   5.   Corrective transaction errors.


     STEP 1. PRINTING THE FINAL REPORTS AND PERFORMING THE FINAL PAY PERIOD UPDATE

1.          Select Help | About from the menu options.
            Ensure that you process the Year End on Pastel Payroll 2008 Update 2e or later.

            Should you require updating, go to www.pastelpayroll.co.za and check for the latest update.
            Alternatively you can collect a CD with the latest version from our offices or have it couriered
            to you. You will be responsible for the costs of the CD as well as the courier charges.

            Ensure that you run a Legislative Release after updating your software.

2.          Select Utility | System Status from the menu options.
            Ensure that you are in the final processing period of the tax year (i.e. February 2008).




3.          Select View | Statutory Reports | IRP5/IT3(a) Exception Report from the menu options.

            Print the IRP5/IT3(a) Exceptions Report after doing a Payroll Run. Print the report for all
            employees. Select Both under the Print Status. Some of the exceptions can only be corrected
            in the last processing period, so we advise that you do not do a pay period update into the Year
            End before these errors are all corrected. Should you be pressed for time to update into year
            end, ensure that you make a copy company in the last pay period so that these errors can be
            corrected in your copy company.

            Please Note: Pastel Payroll allows you to proceed with your Year End process even though
            exceptions may be detected, but will not allow you to generate the electronic export file while
            exceptions exist. Proceeding will result in you having to correct these errors in both your backup
            company as well as your live company.




                                                                                                    2008 Year End Guide | 2
     Correct any problems as stipulated in the exception report before doing the pay period update
     into the Year End.


     ?   For more information on what the different exceptions mean and how to fix them, please refer
         to the exceptions table later in this document.

4.   Select Process | Payslips From the menu options.

     If you want to process leave over Year End you should process the leave until the last day of the
     tax year. Once your company is in the new tax year, process the balance of the leave in the new
     tax year.

5.   Select Process | Payroll Run from the menu options.

     Print your payslips in the last processing period by performing a Payroll Run.

6.   Select View | Payroll Reports from the menu options.

     Print all your normal reports for the month ending February 2008. It is recommended that you
     print a detailed Monthly Analysis report for the entire tax year. Select View | Payroll Reports |
     Monthly Analysis from the menu options and select to print a detailed report for the last 12
     months. This report will provide you with details of all transactions processed for the 2007/2008
     tax year.

7.   Select Process | Pay Period Update from the menu options.

     Perform a Pay Period Update for the last period in the tax year for all pay frequencies. Pastel
     Payroll will prompt you to print an IRP5/IT3(a) Exception Report before processing the Pay Period
     Update. It is recommended that this report is printed. You may select to only print the report
     and correct the exceptions when your company is in the Year End period. If you process multiple
     pay frequencies on the same company, e.g. monthly and weekly employees, you will have to be
     in the final month and/or week of the tax year before you will be able to update into the Year
     End period.

     Pastel Payroll will not allow you to continue unless you make a backup of your company at this
     point. Please store your backup in a safe place. It is recommended to make at least two backups,
     storing at least one on an external storage device (like a flash drive or CD) or a server.


     STEP 2. PRINTING YEAR END REPORTS AND PERFORMING THE YEAR END UPDATE

1.   Select Utility | System Status from the menu options.

     You should now be in the Year End period for all of your activated pay frequencies.
     We recommend that you do the following:
     •   Process the Year End update, select to make a copy company and proceed with your March
         2008 processing.
     •   You have 60 days after the end of the tax year in which you must print your tax certificates
         and submit the electronic export files, together with your completed IRP501 Return to SARS.
         You will be able to use the copy company to print the tax certificates and generate the
         electronic export files.




                                                                                            2008 Year End Guide | 3
2.    Select View | Statutory Reports | OID Return from the menu options.

      Print the OID Return. Use this report to complete your annual W.As8 Return Of Earnings to the
      Occupational Injuries and Diseases Compensation Fund.

3.    Select Process | Year End Update from the menu options.

      Process the Year End Update. This procedure will roll the system over into the new tax year, i.e.
      March 2008.

4a.   During the Year End Update process.

      When processing the Year End update, Pastel Payroll will prompt you to make a backup. It is
      important that you make this backup before proceeding. Keep this backup in a safe place,
      preferably on an external storage medium such as a CD or flash disk.

4b.   Select to make a copy company. Give the copy company a name relevant to the tax year e.g.
      YEND2008 for easy identification at a later stage. The tax certificates will be printed and the
      electronic export files will be created from this copy company.




                                                                                             2008 Year End Guide | 4
4c.   Confirm that you have done the following by placing tick marks in the applicable fields:




4d.   You may now select to delete any terminated employees. Select the Filter button. All the employees
      listed on the right column of the screen will be deleted. Employees in the left column will not
      be deleted. To move employees between the columns, select the employee/s and select Move
      Selected Employees. Click OK to return to the previous screen.

      Select the Delete button to delete the employees.




5.    After the Year End Update process.

      Once your existing company is in March 2008 (period 1 of the new tax year), select Setup | Pay
      Frequencies from the menu options. Ensure that the fifth weeks and third fortnights are indicated
      correctly for the weekly and fortnightly pay frequencies. Verify that the correct Public Holidays
      are on the Holidays tab. If you prefer to use a reference to a tax year in your company name,
      you may now select File I Rename from the menu options and select to rename your existing
      company for the new tax year.

6.    Select Edit | Employee Masterfile from the menu options.

      Employees who had tax directives for the previous tax year will be reset to the average tax method
      once you have completed the Year End update. Your employees are required to re-apply for any
      directives. You are now ready to start processing for the new tax year.




                                                                                              2008 Year End Guide | 5
                               STEP 3. PRINTING TAX CERTIFICATES

1.   To print your Statutory Certificates:
     •   Select File | Open | Add Company | Add Company from the menu options
     •   Select the company name, i.e. YE2008.
     •   Select OK.
     •   Open the copy company that was created during the Year End update process.
     •   Select Utility | Rebuild Totals from the menu options.


2.   Select View | Statutory Reports from the menu options.


     Print the IRP5/IT3(a) Summary Report.


     Reconcile the tax paid over to SARS for the year with your SARS receipts.


3.   Select View | Payroll Reports | Transaction Listing from the menu options


     If the tax paid over to SARS does not reconcile to the tax on Pastel Payroll according to the
     IRP5/IT3(a) Summary Report:
     •   Print the Transaction Listing Report for all employees from month 1 to 12 for Transactions
         8000 (SITE) and 8001 (PAYE).
     •   Add Transaction 8000 (SITE) to Transaction 8001 (PAYE) to determine which months do
         not reconcile to the Summary Report.
     •   Compare your employees’ payslips to the Transaction Listing Report and determine the cause
         of the non-reconciliation.


4.   Select View | Statutory Reports | IRP5 Check List and View | Statutory Reports | IT3(a) Checklist
     from the menu options.


     Print the IRP5 and IT3(a) Checklists and ensure that all the information is correct.


5.   Select View | Statutory Reports | IRP5 Certificates from the menu options.


     Print Test IRP5 and IT3(a) Certificates and verify that the figures are correct.


6.   Select View | Statutory Reports | IRP5 Certificates and View | Statutory Reports | IT3(a) Certificates
     from the menu options.


     Perform a Final print of your IRP5/IT3(a) Certificates.


     Specify the first certificate number of the range of certificates. You must allocate a sequential
     number series, starting at '00000001'. Should you have more than one company with the same
     PAYE reference number, the second company’s number should start at ‘10000001’.


7.   Select Edit | Employee Masterfile from the menu options.


     Select the Tax tab. Ensure that Tax Certificate Issued has been ticked and that the tax certificate
     number is displayed. This will only be the case after the final print of the tax certificates has
     been performed.




                                                                                                2008 Year End Guide | 6
8.   Select View | Statutory Reports | IRP5/IT3(a) Electronic Certificates from the menu options.

     Generate a TEST file first and submit it to SARS. This test file can be submitted by making use
     of a floppy disk or by writing the file to a CD. Another alternative is to e-mail your electronic
     submission file via e-mail by attaching the file to an e-mail message, and sending it to
     paye.cc@sars.gov.za

     As soon as SARS receives your e-mail submission, they will reply with an e-mail message
     confirming that they received it and that e-mail will contain a reference number. They will then
     test your submission file for any errors and inform you should there be any problem. This procedure
     can take anything from a few hours up to two weeks.

     Once the test file is returned without any errors, you are required to generate a LIVE run in a
     similar manner as the test file was submitted.

     SARS allows you to submit only 4 LIVE runs. The Generation Number must start at 0001.

     If a second submission is required for the company with the same PAYE reference number due
     to errors, you will need to change the generation number to 0002, whether it is a test or a live
     run.

     For a second company with the same PAYE reference number you may use another consecutive
     number sequence e.g. 1001, 1002 etc.

     Only hand the IRP5 and IT3 (a) Certificates to your employees once SARS has accepted your
     LIVE submission.




     NOTE !!!
     Remember to submit your completed IRP501 together with your LIVE submission.
     If SARS does not receive both of these, your submission will not be seen as final!




                                                                                             2008 Year End Guide | 7
     STEP 4. BELOW IS A LISTING OF ERRORS YOU MIGHT ENCOUNTER ON THE IRP5 / IT3(a)
                                   EXCEPTIONS REPORT:

                       ERROR                                                         FIX

1.   Address Line 1 must be specified on the Setup          Select Setup | Company Parameters and enter the
     | Company Parameters screen.                           company’s Postal or Physical address. The first line
                                                            in the Postal and/or Physical Address fields should
                                                            not be empty.

2.   A valid Postal Code must be specified on the           Select Setup | Company Parameters and enter a
     Setup | Company Parameters screen.                     valid Postal Code for the company address. This is
                                                            a compulsory field for tax certificate purposes.

3.   Invalid PAYE Reference Number. Please specify          Select Setup | Company Parameters and enter the
     the correct number under Statutory Information         registered PAYE number of your company under the
     on the Setup | Company Parameters screen.              Statutory Information section in the field provided.
                                                            This is a compulsory field for tax certificate purposes.

4.   Either a Postal Address or a Physical Address          Select Edit | Employee Masterfile and enter a Postal
     must be specified on the Edit | Employee Masterfile    or Physical Address for each one of the employees.
     screen.                                                It is compulsory for each employee to have at least
                                                            one address specified for tax certificate purposes.

5.   Valid Postal Codes must be specified on the Edit       Select Edit | Employee Masterfile and enter a valid
     | Employee Masterfile screen.                          Postal Code in the Postal Code field for the employee
                                                            address. This is a compulsory field for tax certificate
                                                            purposes.

6.   Employee’s Tax Number specified on the Tax tab         Select Edit | Employee Masterfile and enter the correct
     on Edit | Employee Masterfile screen is invalid.       Tax Number on the Tax tab for the specific employee.
                                                            If an employee does not have a Tax Number, ensure
                                                            that this field is left blank.

7.   Employee’s ID Number specified on the Personal         Select Edit | | Employee Masterfile and ensure that
     tab on Edit | Employee Masterfile screen is invalid.   the ID Number of the specified employee is entered
                                                            correctly. If you do not have an ID number, enter the
                                                            Passport Number in the Passport Number Field.

8.    Nature of Person must be specified on the Tax         Select Edit | Employee Masterfile and access
      tab on Edit | Employee Masterfile screen.             the employee in question. Select the Tax tab.
                                                            Select the relevant option from the Nature of Person
                                                            field:
                                                            A = Employee has a valid ID document or SA passport
                                                            and the ID/passport number was entered on the
                                                            Personal tab of the Employee Masterfile.
                                                            B = Employee does not have a valid ID document or
                                                            SA passport and no ID/passport number was entered
                                                            on the Personal tab of the Employee Masterfile.
                                                            C = Employee is a Director of a company or Member
                                                            of a CC.
                                                            D = Employee is not an individual but registered as
                                                            a Trust.
                                                            E = Employee is not an individual but a Company or CC.




                                                                                                 2008 Year End Guide | 8
                                                            F = Employee is not an individual but trades as a
                                                            Partnership.
                                                            G = Employee is not an individual but trades as a
                                                            Corporation.
                                                            H = Employee is not an individual but a Labour Broker
                                                            registered as a company/CC in possession of an IRP30
                                                            tax exemption certificate issued by SARS for the current
                                                            tax year.
                                                            I = Employee is not an individual but a Labour Broker
                                                            registered as a trust in possession of an IRP30 tax
                                                            exemption certificate issued by SARS for the current
                                                            tax year.
                                                            M = Employee earned income from a source outside
                                                            South Africa.

9.    Employee’s Date of Birth and ID Number do not         Select Edit | Employee Masterfile and correct the ID
      match.                                                Number or Date of Birth on the Personal tab for the
                                                            specific employee. Ensure that the first 6 digits of
                                                            the ID number correspond with the Date of Birth.

10.   Specify a valid IT3(a) Reason Code on the Tax         When an employee does not pay tax, a valid IT3(a)
      tab on Edit | Employee Masterfile screen.             Reason Code should be specified. Select Edit | Employee
                                                            Masterfile and access the employee in question. Select
                                                            the Tax tab. Select the reason why no tax was deducted
                                                            from the employee’s earnings from the IT3(a) Reason
                                                            Code field:

                                                            1 = Not a valid option after the 2003 tax year.
                                                            2 = Employee’s annual earnings is less than the annual
                                                            tax threshold (R43 000 per annum for employees
                                                            younger than 65 years or R69 000 per annum for
                                                            employees older than 65 years).
                                                            3 = Employee is an Independent Contractor not deemed
                                                            to be an employee.
                                                            4 = Employee received only non taxable earnings for
                                                            the current tax year.
                                                            5 = Employee received income from a source outside
                                                            South Africa which was exempt from employees tax.
                                                            6 = Employee is a Director of a company or Member
                                                            of a CC and received additional earnings only taxable
                                                            in the next tax year.
                                                            7 = Employee is not an individual but a Labour Broker
                                                            in possession of an IRP30 tax exemption certificate
                                                            issued by SARS for the current tax year.

11.   Employee’s ID or Passport Number must be              If you do not have an ID Number or Passport Number
      specified on the Edit | Employee Masterfile screen.   for an employee, you are required to select Edit |
                                                            Employee Masterfile and select the Nature of Person
                                                            on the Tax tab as B – Individual without ID.
                                                            Alternatively, enter the ID number or Passport number
                                                            of the employee on the Personal tab.




                                                                                                 2008 Year End Guide | 9
12.   Company/CC/Trust Number must be specified on        If the Nature of Person is D or E you will need to enter
      the Tax tab on Edit | Employee Masterfile screen.   the Company/CC/Trust Number by selecting Edit |
                                                          Employee Masterfile and entering the Company/CC/Trust
                                                          Number on the Tax tab.

13.   Directive Number must be specified on the Tax       If the Tax Method for an employee is Directive
      tab on Edit | Employee Masterfile screen.           Percentage or Directive Amount you are required to
                                                          enter the Directive Number by selecting Edit | Employee
                                                          Masterfile and entering the directive number on the
                                                          Tax tab.

14.   ID Number, Passport or Company/CC/Trust Number      When the nature of Person of an employee is selected
      must be entered if Nature of Person is “M”.         as M, you must enter the ID Number, R.S.A. Passport
                                                          or Company/CC/Trust Number by selecting Edit |
                                                          Employee Masterfile and correcting the details on the
                                                          Personal and Tax tabs.

15.   Please specify Retirement Funding Income or Non-    Indicate whether the value of the transaction in question
      retirement Funding Income.                          was used in the calculation of pension/provident fund
                                                          contributions. Use any one of the following methods:
                                                              (a) Select Setup | Transactions. Select the
                                                                  transaction in question. Select Calculation
                                                                  Totals and select the Retirement Funding
                                                                  Income option if pension/provident fund
                                                                  contributions were based on the value of this
                                                                  taxable income/benefit. Select the Non-
                                                                  retirement Funding Income option if
                                                                  pension/provident fund contributions were not
                                                                  calculated on the value of this taxable
                                                                  income/benefit.
                                                              (b) Select Setup | RFI Profiles. Enter a code and
                                                                  description for the pension/provident fund
                                                                  contributions that were processed. Select
                                                                  whether the contributions were calculated on
                                                                  a Percentage of Package or Percentage of
                                                                  Income. If calculated on a Percentage of
                                                                  Package, specify the percentage in the field
                                                                  provided. If calculated on a Percentage of
                                                                  Income, select each applicable taxable income
                                                                  and/or benefit transaction and specify the
                                                                  percentage of the value on which the
                                                                  pension/provident fund contribution was based.
                                                                  Select the employees tab and add the employees
                                                                  who are members of this specific
                                                                  pension/provident fund.

16.   Please specify a Clearance Number.                  Each Pension or Provident Fund and Retirement Annuity
                                                          must have an 11-digit clearance number specified for
                                                          tax certificate purposes.
                                                              (a) Select Setup | Transactions. Select the
                                                                  transaction in question. Enter the tax clearance
                                                                  number beginning with 18204 provided by
                                                                  the pension, provident or retirement annuity
                                                                  fund administrators in the Reference field.
                                                              (b) Select Edit | Employee Masterfile. Select the
                                                                  Statutory | Clearance Numbers tab. Enter a




                                                                                              2008 Year End Guide | 10
                                                              description for the pension, provident or retirement
                                                              annuity fund that the employee is a member of.
                                                              Enter the tax clearance number beginning with
                                                              18204 provided by the fund in the Clearance
                                                              Number field. Select the transaction used to process
                                                              the contributions towards the fund.

17.   Nature of Person should be “C” if the IT3(a)         If the employee is a Director and the Nature of Person
      Reason Code is 6 on the Tax tab on Edit | Employee   is specified as C – Director on the Tax tab of the
      Masterfile screen.                                   Employee Masterfile, the IT3(a) Reason Code should
                                                           be 6-Directors Remuneration. To correct this, select
                                                           Edit | Employee Masterfile and select the correct options
                                                           on the Tax tab.

18.   Retirement Funding Income or Non-retirement          For the Transactions that are specified on the exception
      Funding Income should not be specified if not        report, uncheck Retirement Funding Income or Non-
      Gross Remuneration.                                  retirement Funding Income under Setup | Transactions
                                                           | Calculation Totals.

19.   Double or Single quotes used on the Employee         Remove any ‘ (Apostrophes) or “ (Quotes) from the
      Surname, Name or Address must be removed on          employee name, surname and address fields under
      Edit | Employee Masterfile screen.                   Edit | Employee Masterfile on the Personal tab.

20.   Tax Totals 3697 (RFI) + 3698 (Non-RFI) not equal     Ensure that all Transactions that are linked to tax total
      to tax total 3699 (Gross Remuneration). Check        45 – Gross Remuneration are linked to either Calculation
      Calculation Total 11, 12 and Tax Total 45.           Total 11 – Retirement Funding Income or Calculation
                                                           total 12 – Non-retirement Funding Income under Setup
                                                           | Transactions | Tax Totals. Also refer to exception
                                                           number 15 above to solve this problem.

21.   Physical address line 1 must be specified on Edit    Select Edit | Employee Masterfile and access the
      | Employee Masterfile screen.                        employee in question. Select the Personal tab. Enter
                                                           the employee’s residential address. The first line in
                                                           the residential address block should not be empty.

22.   Postal address line 1 must be specified on Edit |    Select Edit | Employee Masterfile and access the
      Employee Masterfile screen.                          employee in question. Select the Personal tab.
                                                           Enter the employee’s postal address. The first line in
                                                           the postal address field should not be empty.

23.   Clearance number must be 11 characters long.            (a) Select Setup | Transactions. Select the
                                                                  transaction in question. Enter the tax clearance
                                                                  number beginning with 18204 provided by the
                                                                  pension, provident or retirement annuity fund
                                                                  administrators in the Reference field.
                                                              (b) Select Edit | Employee Masterfile. Select the
                                                                  Statutory | Clearance Numbers tab. Enter a
                                                                  description for the pension, provident or
                                                                  retirement annuity fund that the employee is a
                                                                  member of. Enter the tax clearance number
                                                                  beginning with 18204 provided by the fund in
                                                                  the Clearance Number field. Select the
                                                                  transaction used to process the contributions
                                                                  towards the fund.




                                                                                               2008 Year End Guide | 11
24.   Clearance number must begin with 18204.                 (a) Select Setup | Transactions. Select the transaction
                                                                  in question. Enter the tax clearance number
                                                                  beginning with 18204 provided by the
                                                                  pension, provident or retirement annuity fund
                                                                  administrators in the Reference field.
                                                              (b) Select Edit | Employee Masterfile. Select the
                                                                  Statutory | Clearance Numbers tab. Enter a
                                                                  description for the pension, provident or
                                                                  retirement annuity fund that the employee is a
                                                                  member of. Enter the tax clearance number
                                                                  beginning with 18204 provided by the fund in
                                                                  the Clearance Number field. Select the
                                                                  transaction used to process the contributions
                                                                  towards the fund.

25.   Nature of person "B" must not have an ID Number      Select Edit | Employee Masterfile and access the
      or a Passport number entered.                        employee in question. Select the Tax tab. Select the
                                                           Nature of Person option A or C.

26.   Director's bonus transaction 5207 has been used,     Select Edit | Employee Masterfile and access the
      so the IT3(a) reason code on the Tax tab, Employee   employee in question. Select the Tax tab. Select the
      Masterfile screen must be a 6.                       IT3(a) Reason Code option 6.

27.   Tax totals 3605 has been checked, so 3695 and        Select Setup | Transactions. Select the transaction in
      3699 must also be checked.                           question. Check which template code the transaction
                                                           is linked to. Click the Cancel button. Select Setup |
                                                           Transaction Templates. Select the template the
                                                           transaction is linked to. Select Tax Totals. Select Tax
                                                           Totals 3605, 3695 and 3699.

28.   Tax totals 3695 has been checked, so 3605 and        Select Setup | Transactions. Select the transaction in
      3699 must also be checked.                           question. Check which template code the transaction
                                                           is linked to. Click the Cancel button. Select Setup |
                                                           Transaction Templates. Select the template the
                                                           transaction is linked to. Select Tax Totals. Select Tax
                                                           Totals 3605, 3695 and 3699.

29.   Clearance number must be numeric.                       (a) Select Setup | Transactions. Select the
                                                                  transaction in question. Enter the tax clearance
                                                                  number beginning with 18204 provided by the
                                                                  pension, provident or retirement annuity fund
                                                                  administrators in the Reference field.
                                                              (b) Select Edit | Employee Masterfile. Select the
                                                                  Statutory | Clearance Numbers tab. Enter a
                                                                  description for the pension, provident or
                                                                  retirement annuity fund that the employee is a
                                                                  member of. Enter the tax clearance number
                                                                  beginning with 18204 provided by the fund in
                                                                  the Clearance Number field. Select the
                                                                  transaction used to process the contributions
                                                                  towards the fund.

30.   Tax Totals 3696 + 3699 must be equal to income       Ensure that ALL other exceptions have been resolved
      sources.                                             and only once you are confident that there are no other
                                                           exceptions except this one, update into year end and
                                                           select Utility | Rebuild Totals from the menu options.
                                                           This should resolve this exception.



                                                                                                2008 Year End Guide | 12
                 STEP 5. ERRORS WHICH REQUIRE CORRECTIVE TRANSACTIONS


THE FOLLOWING ERRORS CAN ONLY BE SOLVED BY THOROUGH INVESTIGATION AND IN SOME CASES
CORRECTIVE TRANSACTIONS. WHEN THESE ERRORS OCCUR ON THE EXCEPTION REPORT, PLEASE CONTACT
THE PASTEL PAYROLL SUPPORT TEAM ON +27 11 304 4300 FOR FURTHER ASSISTANCE.


1.   There is a negative tax total 4101 (SITE) or 4102 (PAYE) or 4103(Total Tax).


2.   Negative tax totals detected for the employee. Please check the following tax totals [LIST OF TAX TOTALS
     TO BE CHECKED]


3.   The employee has a deduction for retirement annuity (Tax Total 4003), but no Non-retirement Funding
     Income (Tax Total 3698).


4.   Tax totals 4024 (Medical Costs Direct Family) + 4485 (Medical Costs Other Dependants) not equal to tax
     total 3813(Medical Costs Paid by Company).


5.   Code 4005 (Medical Aid Contributions) is mandatory if a value for code 3810 (Medical Aid Benefit) or
     code 4025 (Med. Contributions Tax Deduct) is specified.


6.   Code 4486 (Medical Aid Capped Amount) is mandatory if a value for code 4025 (Med. Contributions Tax
     Deduct) is specified.


7.   The value of code 4025 (Med. Contributions Tax Deduct) may not be greater than the value of code
     4005 (Medical Aid Contributions).


8.   The value for code 4475 + 4476 cannot be greater than the value of code 3808.


9.   Code 3915 needs to have a value if code 4115 has a value.




                                                                                          2008 Year End Guide | 13

				
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