Oracle HRMS enables you to run the following processes and reports for your tax year end reporting and processing.
Tax Year End Data Validation Report and Preprocess. Validates tax year end data and reports any errors before running the Tax Certificate Preprocess.
IRP5 Tax Certificates. Creates IRP5 certificates.
IT3A Tax Certificates. Creates IT3(a) certificates.
Electronic Tax File. Creates the Electronic Tax File in ASCII format.
Manually Issued Certificates. Updates Oracle Payroll with the numbers of any manual IRP5 or IT3(a) certificates and prevents the creation of duplicate electronic copies.
Summary of Tax Certificates. Prints the totals of all SARS Codes from the IRP5 and IT3a Tax Certificates.
Tax Certificate Number Report. Prints the numbers of all tax certificates generated with details of those assignments and the number of manual certificates issued and reissued.
Tax Year Start Process. Updates employee tax information including tax status, tax directive number and tax directive value on the ZA_Tax element. See Running the Tax Year-Start Processes.
Tax Year Start Rollback. Enables you to roll back the actions performed by the Year Start Process.
Oracle HRMS for South Africa provides you with tax year end processes and it enables you to create tax certificates and your electronic tax file.
Yes, Oracle HRMS for South Africa enables you to create manual tax certificates and to record the manual certificate numbers in Oracle Payroll so that electronic certificates are not also created.
Oracle HRMS for South Africa enables you to print the Tax Certificates and other Tax Year End reports to meet the legislative requirements of SARS and other South African government organizations.
You must create a new assignment for an employee if any of the following actions occur during the tax year:
Change in legal entity
Change of tax status
Change in pension basis
Foreign assignment
If an employee transfers from one legal entity to another during a tax year, you must create a new assignment on the date of the change. The assignment with the original legal entity value must be stopped to prevent incorrect balance calculations and duplicate or incorrect tax certificates from being produced. If the employee transfers from one payroll to another within the same legal entity then you do not need to create a new assignment.
If a date-effective change to an assignment's tax status is necessary during the tax year, the existing assignment must be stopped and a separate assignment must be created for the employee. Tax certificates are issued per assignment therefore, in this case the certificates will reflect the correct period of employment relating to each effective tax status. The ZA Tax Module treats the effective tax status as being applicable for the whole tax year of the assignment.
If a tax status change is made on an existing assignment during the tax year and a new assignment is not created, tax is calculated as if the new status was applicable for the whole year.
See: Ending an Assignment, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide
See: Terminating an Assignment, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide
The Tax Year Start Process is run at the start of the tax year to update tax information held for employees. The process performs the following actions on the ZA_Tax element:
Tax Status: Updates all employees on Directive Amount/Percentage to Normal. Updates all employees on Private Director Directive Amount/Percentage to Private Director.
The Tax Directive Number and Tax Directive Value input values are cleared.
You run this process from the Submit Request window.
To run the Tax Year Start process
In the Name field, select Tax Year Start Process
In the Parameters window, select the payroll.
Select the tax year for which the process must be run. This is the year that you want information reset from. For example, if you need to clear out the tax directive information as at 01-MAR-2021, then you must enter 2021 in this parameter.
Choose the Submit button.
Tax Year Start Rollback Process
The Tax Year Start Rollback process is used to roll back the actions performed in the Tax Year Start Process. You run this process if the Tax Year Start Process was run in error.
You run this process from the Submit Requests window.
To run the Tax Year Start Rollback process
In the Name field, select Tax Year Start Rollback.
In the Parameters window, select the payroll.
Select the tax year for which the process must be run.
Choose the Submit button.
To run your tax year end processes:
Update Oracle Payroll with the tax certificates that were manually issued during the tax year.
Check the validity of your tax year end data for all employees, or an assignment set, or a specific employee.
See: Running the Tax Year End Data Validation and Preprocess.
If required, roll back or retry the Tax Certificate Preprocess after correcting any errors.
Run the IRP5 Tax Certificate and IT3(a) Tax Certificate processes for employees who must be issued electronic tax certificates.
See: Creating the IRP5 Tax Certificate and Creating the IT3(a) Tax Certificate.
Run the Electronic Tax File process.
Run the Generate Self Service Certificates process.
You create tax certificates at tax year end or after employee termination, or as otherwise directed by SARS.
When you run this process, Oracle HRMS checks the validity of your tax year end data and reports errors and warnings, if any, in the Tax Year End Data Validation report and the Exception Log. You can then fix these errors and warnings before rerunning the process. You can rerun the process as often as required to verify that all errors and warnings have been fixed.
The Tax Year End Data Validation Report initiates the Tax Certificate Preprocess based on whether errors are identified and also based on the value of the Test Run parameter.
Note: If you set the Test Run parameter to No, then the application does not initiate the Tax Certificate Preprocess unless there are no errors reported in the Tax Year End Data Validation Report. If you set the Test Run parameter to Yes, then the application initiates the Tax Certificate Preprocess irrespective of whether errors are reported in the Tax Year End Data Validation Report or not.
Caution: The Test Run parameter is only an indicator of whether the Tax Certificate Preprocess needs to be initiated regardless of errors or not. This parameter does not indicate to SARS whether the Electronic Tax File is a test or final file.
The Tax Certificate Preprocess initiates the Create Tax Year End exception log. The application populates this log while the Tax Certificate Preprocess runs, simultaneously adding errors as they are encountered. Note that errors identified in the Create Tax Year End exception log do not cause the Tax Certificate Preprocess to fail. Therefore, you must always check the log file for errors before running the IRP5, IT3(a) and other TYE processes.
You run this process from the Submit Requests window.
To run the Tax Year End Data Validation and Preprocess
In the Name field, select Tax Year End Data Validation and Preprocess.
In the Parameters window, select the legal entity.
Select the tax year.
Select the period of reconciliation.
Select the certificate type:
ITREG - When you select the ITREG value for the Tax Year End Data Validation and Preprocess, a number of validations are processed to ensure, that data NOT required for an ITREG certificate is not reported as an error if it is missing.
Normal - If you select the Normal value, then the application produces IRP5's and IT3(a)'s in the normal manner.
Select the name of the payroll, if required.
Select an assignment set, if required.
Select the employee name if you are creating a certificate for just one employee. Do this if an employee has been terminated or has mislaid their tax certificate.
Specify if this is a test run:
If you select No, the Tax Certificate Preprocess will only run if the Tax Year End Data Validation report identified no errors.
If you select Yes, the Tax Certificate Preprocess will run whether or not the Tax Year End Data Validation report identified any errors.
Determine the sort order for the report. You can sort by location, organization, employee name, employment number, or assignment number. If you leave these fields blank, the report is sorted by employee number within the legal entity.
Indicate whether you want to generate a combined certificate or separate certificates. If you select Yes, the application will include as many lump sums on the Main Certificate as possible. Note: Tax certificates may only contain 13 income codes and 3 tax directive numbers, if either of these limits is exceeded additional lump sums will be reported on another tax certificate. If you select No, then each lump sum with a corresponding tax directive number will be reported on a separate tax certificate.
Click Submit.
You can check the results of the report created.
You can generate the Tax Year End Data Validation Report in Excel format.
To run the Tax Year End Data Validation and Preprocess (Excel)
Navigate to the Submit Request window.
In the Name field, select Tax Year End Data Validation and Preprocess (Excel).
Enter the following details:
Legal Entity: Enter the name of the legal entity for which to run the report. This is a mandatory parameter.
Tax Year: Enter the tax year for which to run the report. This is a mandatory parameter.
Period of Reconciliation: Specify if the request is for the August or February period of reconciliation. This is a mandatory parameter.
Certificate Type: Select if this is a normal request (Normal) or a request to register an employee for income tax purposes (ITREG). This is a mandatory parameter.
Payroll: Optionally, enter a payroll name.
Assignment Set: Optionally, enter an assignment set.
Employee Name: Optionally, enter the name of an employee.
Test Run: Select if this is a test run.
If you select No, the Tax Certificate Preprocess will only run if the Tax Year End Data Validation report identified no errors.
If you select Yes, the Tax Certificate Preprocess will run whether or not the Tax Year End Data Validation report identified any errors.
Sort Order 1, Sort Order 2 and Sort Order 3: These are optional parameters that contain default values. You can change the order in which the records are displayed in the reports.
Combine Certificates: This is a mandatory parameter. You must specify Yes or No.
Submit your request.
Running the Interim Tax Year End Data Validation Report
You use the Interim Tax Year End Data Validation Report concurrent program to check employee tax year end data any time of the year. This helps you identify data errors and rectify them prior to the Tax Year End. Note that this concurrent program does not submit the Tax Year End Preprocess.
To run the Interim Tax Year End Data Validation Report:
Select the payroll.
Enter the tax year.
Select the assignment set.
Select the employee.
Determine the sort order for the report. You can sort by employee name, employee number, or assignment number. If you leave these fields blank, the report is sorted by employee number within the legal entity.
Click the Submit button.
To view the Create Tax Year End exception log
Click View.
Select the Requests option.
Select the Find option.
Search for and select the relevant Create Tax Year End exception log process.
Click the View Log option.
Reissuing and Correcting Tax Certificates
You must rerun the Tax Year End Data Validation and Preprocess if:
Errors were found in a tax certificate that you have issued to an employee. After you have fixed the errors, running the process enables you to reissue another certificate with a new number.
Errors were found in a tax certificate that you have not yet issued to an employee. After you have fixed the errors, running the process enables you to create another certificate that has the same tax certificate number.
Rolling Back the Tax Certificate Preprocess
If you have detected errors with the tax certificates before submission to SARS, you can either roll back and resubmit the process or retry the process. This process resets the generation number on the tape.
You run the rollback from the Submit Request window.
To roll back the Tax Certificate Preprocess
In the Name field, select Rollback.
In the Parameters window, select the magnetic transfer that you want to rollback and select the assignment set.
Click Submit.
To retry the Tax Certificate Preprocess:
Mark the Tax Certificate Process or specific assignments for retry.
In the Name field, select Retry Payroll Process.
Enter the Parameters field to open the Parameters window.
Select in the Payroll Process field the magnetic transfer that you want to retry.
Click Submit.
This process resets the generation number on the tape.
If you have manually issued IRP5 or IT3(a) certificates to employees, the certificate numbers issued must be updated so that Oracle Payroll does not produce electronic tax certificates for these assignments.
Important: You must update Oracle Payroll with the manual certificate numbers before you submit the reports for the IRP5 or IT3(a) tax certificates.
You run this process from the Submit Request window.
To run the Manually Issued Tax Certificate process
In the Name field, select Manually Issued Tax Certificates.
In the Parameters window, select the legal entity.
Select the tax year for which you are producing tax certificates.
Select the Period of Reconciliation.
Select the name of the payroll.
Select the tax certificate preprocess that was run.
Select the assignment number.
Select the directive number:
If the assignment has a directive number on the ZA_Tax element or on the Za_Tax_on_Lump_Sums element, the directive numbers will be displayed here. You must run the process once for each directive number.
If the employee has no directive numbers, select No Normal Directive Number.
If you issue a manual certificate for the main certificate as opposed to the lump sum certificate then select Main Certificate. The list of directives which are included in the Main Certificate is listed next to it.
Note: The application rejects a Manual Certificate for an employee under the following conditions:
If the selected Directive Number is Main Certificate and an electronic main certificate is already issued for an employee.
If the selected Directive Number is Main Certificate and at least one of the directive numbers merged into the main certificate has a separate electronically-issued lump sum certificate.
If an electronic lump sum certificate is already issued for the directive chosen in the Directive Number field.
If no electronic lump sum certificate is issued for the selected directive, but the directive is included in a main certificate which was issued electronically.
Enter the tax certificate number that was manually issued.
Click the Submit button.
The IRP5 Tax Certificates process allows you to create IRP5 tax certificates for employees who have paid tax during the tax year.
Use the IRP5 Tax Certificates (Pre Tax Year 2022) process to create IRP5 tax certificates for employees who have paid tax during the tax year before the tax year 2022.
Use the IRP5 Tax Certificates process to create IRP5 tax certificates for employees from the tax year 2022 and onwards.
Note: Before an employee can receive an IRP5 Tax Certificate, you must select a legal entity in the ZA Tax Information Assignment Extra Information Type window.
See: Assignment Extra Information Types
You run the IRP5 tax certificate process from the Submit Request window.
To create IRP5 certificates
In the Request Name field, select the applicable value:
IRP5 Tax Certificates (Pre Tax Year 2022) - generates IRP5 Tax Certificate for tax years before 2022.
IRP5 Tax Certificates - generates the IRP5 Tax Certificate from the tax year 2022 onwards.
In the Parameters window, select the legal entity.
Enter the tax year for which you are creating the certificates.
Select the period of reconciliation.
Select the name of the payroll.
Select the tax certificate preprocess.
Select an assignment if you are creating a tax certificate for one specific assignment. Do this if an employee has been terminated or has misplaced their tax certificate.
Important: If you leave this field blank, then tax certificates for all assignments processed in the selected Tax Certificate Preprocess are included.
Indicate if you are performing a dummy run only.
Producing a dummy certificate allows you to check it before issuing it to an employee. If you are doing a dummy run, Oracle Payroll does not generate any tax certificate numbers and therefore the certificates will not get written to the Electronic Tax File.
If you are not doing a dummy run, Oracle Payroll generates tax certificate numbers and includes them in the Electronic Tax File.
Indicate if you are reissuing the certificate.
Important: You must submit the Tax Certificate Preprocess before you reissue tax certificates so that new tax certificate numbers are allocated. If the Tax Certificate Preprocess is not rerun, and you reissue tax certificates, Oracle Payroll will reprint the previous tax certificate number issued.
You can reissue a certificate if it has already been issued to an employee and submitted to SARS but contains incorrect information, or if SARS or the employer cancels the certificate.
You cannot reissue a certificate if you are doing a dummy run.
If you are not doing a dummy run, and you are not reissuing tax certificates, Oracle Payroll will reprint tax certificates using the same tax certificate numbers.
Determine the sort order for the report. You can sort by location, organization, employee name, employment number, or assignment number. If you leave these fields blank, the report is sorted by employee number within the legal entity.
Click OK and then Submit.
The IT3(a) Tax Certificates process allows you to create IT3(a) certificates for employees who have paid no tax during the tax year.
Note: Before an employee can receive an IT3(a) tax certificate, you must select a legal entity in the ZA Tax Information Assignment Extra Information Type.
You run this process from the Submit Request window.
To create IT3(a) tax certificates
In the Request Name field, select the applicable value:
IT3A Tax Certificates (Pre Tax Year 2022) - generates the IT3A Tax Certificate for the tax years before 2022.
IT3A Tax Certificates - generates the IT3A Tax Certificate for the tax year 2022 and onwards.
In the Parameters window, select the legal entity.
Select the tax year for which you are creating the certificates.
Select the period of reconciliation.
Select the payroll.
Select the Tax Certificate Preprocess.
Select the assignment number if you are creating a tax certificate for a specific assignment. Do this if an employee has been terminated or has mislaid their tax certificate.
If you leave this field blank, tax certificates for all assignments processed in the selected Tax Certificate Preprocess will be included.
Indicate if you are doing a dummy run only.
Producing a dummy certificate enables you to check it before issuing it to an employee. If you are doing a dummy run, Oracle Payroll does not generate any tax certificate numbers and therefore the certificates will not get written to the Electronic Tax File.
If you are not doing a dummy run, Oracle Payroll generates tax certificate numbers and includes them in the Electronic Tax File.
Indicate if you are reissuing the certificate.
Important: You must submit the Tax Certificate Preprocess before you reissue tax certificates so that new tax certificate numbers are allocated. If the Tax Certificate Preprocess is not rerun and you reissue tax certificates, Oracle Payroll will reprint the previous tax certificate number issued.
You can reissue a certificate if it has already been issued to an employee and submitted to SARS but contains incorrect information, or if SARS or the employer cancels the certificate.
You cannot reissue a certificate if you are doing a dummy run.
If you are not doing a dummy run, and you are not reissuing tax certificates, Oracle Payroll will reprint tax certificates using the same tax certificate numbers.
Determine the sort order for the report. You can sort by location, organization, employee name, employee number, or assignment number. If you leave these fields blank, the report is sorted by employee number within legal entity.
Click OK and then Submit.
You run this process to create the ASCII Electronic Tax File after you have created live (not dummy) IRP5 and IT3(a) Tax Certificates.
You run this process from the Submit Request window.
To create the Electronic Tax File
In the Name field, select Electronic Tax File.
In the Parameters window, select the Certificate type:
ITREG - When you select the "ITREG" value for the Tax Year End Data Validation and Preprocess, a number of new / amended validations are processed to ensure, for example, that data NOT required for an ITREG "certificate" is not reported as an error if it is missing.
Normal - If you select the "Normal" value, then the application produces IRP5's and IT3(a)'s in the normal manner.
Select the tax year for which you are creating the certificates.
Select the Period of Reconciliation.
Select the legal entity.
Select the tax certificate preprocess. If left blank, all certificates created by the Tax Certificate Preprocesses run in the selected tax year will be included in the file. Select a specific tax certificate preprocess when re-issuing tax certificates. Only the re-issued tax certificates are written to the electronic tax file.
Select whether this is a test or live transmission to SARS.
Click the Submit button.
You can view and save the output file from the standard SRS window and use this for submission.
Oracle HRMS enables employees to view and download their tax certificates using the Employee Self-Service application. The following steps are required:
Run the Generate Self Service Certificates process. This process makes the certificates available in Employee Self Service. This process also locks the selected Tax Year End Preprocess so no changes can be made to the Tax Certificates unless the Generate Self Service Certificates process is rolled back.
Add the ZA Self Service Tax Certificate function to the Employee Self-Service menu to enable employees to access their tax certificates.
To run the generate self service certificates process
You run this process from the Submit Request window.
In the Name field, select Generate Self Service Certificates.
In the Parameters window, select the following:
Legal entity.
Tax year for which you have run the Tax Year End Prep Process.
Select the required Tax Certificate Preprocess.
Click OK and Submit.
Note: Only Tax Certificate Preprocesses that have been run with the Test Run parameter set to No will be available to be selected.
To view and download the tax certificates
Once the Generate Self Service Certificates process has been run employees can access their Tax Certificates:
Navigate to the IRP5/IT3A Certificates self-service page.
Select the applicable tax year and click Go to view and to download the PDF certificates.
The Tax Certificate Number Report prints a list of the following:
Tax Certificate Numbers of all tax certificates generated.
Assignment details for the generated tax certificates.
Number of tax certificates reissued.
Number of manual certificates issued.
Run the Tax Certificate Number Report from the Submit Request window.
To run the Tax Certificate Number Report
Select Tax Certificate Number Report in the Name field.
Select the legal entity in the Parameters window.
Select the tax year for which you want to run the report.
Select the Period of Reconciliation.
Choose Employee or Ex-Employee as the employee type.
Choose the sort order.
You can choose to sort by employee name then tax certificate number, employee number only or tax certificate number only.
Select Yes in the Report Detail field if you want to see the individual certificate details, or select No if you only require totals.
You run the Summary of Tax Certificates report as part of your tax year end for reconciliation purposes. The report prints grand totals of the amounts, for every SARS code, that were included in the tax certificates and the electronic tax file.
Run the Summary of Tax Certificates report from the Submit Request window.
To run the Summary of Tax Certificates report
Select Summary of Tax Certificates in the Name field.
Enter the tax year for which you want to run the report.
Select the Period of Reconciliation.
Select the legal entity.
Select the relevant preprocess in the Tax Certificate Preprocess field. Leave this field blank, however, if you want to include all the tax certificate preprocesses that exist for the chosen legal entity in the specified tax year.
Click the Submit button.
The Tax Register Report Archiver shows all tax-related information and tax-related balances for current and terminated employees. It reports on processed assignments with balance values to display for the tax year.
The Tax Register Report Archiver prints the tax status and tax directive values retrieved from the run result values. This information is printed in the header of the report. The total tax value is printed in the body of the report, and is calculated by adding the value of the tax balance to the value of the Tax on Lump Sums and Voluntary Tax balances.
You run the Tax Register Report Archiver from the Submit Request window.
To run the Tax Register Report Archiver
In the Name field, select Tax Register Report Archiver.
Select the legal entity. This report shows applicable information for all payrolls in the selected legal entity.
Select the name of the payroll to run the report for a particular payroll only. Leave this field blank to report on all payrolls in the selected legal entity.
Select the payroll period.
Select the effective date. The application uses your system effective date, but you can override this date.
Select the assignments to include in the report. If you select All, the report will include active and terminated assignments.
Use the Specific Assignment parameter to report for one assignment only.
Note: If you choose a processed assignment with no balance values, then the report will print No data found. The assignments depend on the assignments you selected in the previous step.
Select whether you want to print PTD, MTD, or YTD values.
Select whether you want to sort by full name, by employee number, or by assignment number.
Select whether you want to generate a detail report. Select Yes to print balance values for each assignment. Select No to print grand totals only for the selected payroll.
Select the output type that you want to generate. The file output options are:
CSV File
CSV File and PDF Report
PDF Report
Click OK and then Submit.
The Tax Register Report Archiver initiates the Tax Register Report (XML). Click View Output in the Request window to see the output.
The EMP201 return is a statutory form that employers have to complete and return to SARS on a monthly basis. It shows the amount of PAYE, UIF and SDL that the employer pays to SARS for the month as well as the income and number of employees that each of these payments is based on. Oracle HRMS provides the ZA EMP201 Preprocess and Report to assist you in completing the EMP201 return and also to reconcile payments made to SARS.
To run the EMP201 Report.
Run the ZA EMP201 Preprocess. This process archives the EMP201 information.
Select the legal entity.
Select the payroll to run the EMP201 Preprocess for a particular payroll. If you do not select a payroll, the information for all payrolls in the selected legal entity is stored.
Enter the calendar month.
Select an assignment set if required.
Run the ZA EMP201 Report. This process generates the EMP201 Report.
Select the calendar month
Select the applicable EMP201 Preprocess.
Select Yes or No in the Detail field to indicate whether individual employee data or only totals are displayed.
Run the Employment Tax Incentive Register Archiver process to archive the ETI information. You can run this process from the Submit Request window.
To run the Employment Tax Incentive Register Archiver process:
In the Name field, select Employment Tax Incentive Register Archiver.
Click in the Parameters field.
Select the legal entity. This is a mandatory field.
Select the start date and the end date. These are mandatory fields.
Optionally, select an assignment set to restrict the report to a group of assignments.
Click OK and then click Submit.
Run the Employment Tax Incentive Register report to review the ETI Information. You can run this process from the Submit Request window.
To run the Employment Tax Incentive Register Report:
In the Name field, select Employment Tax Incentive Register Report.
Click in the Parameters field.
Select the legal entity. This is a mandatory field.
Select the Employment Tax Incentive Register request ID. This is a mandatory field.
Click OK and then click Submit.
Run the Tax Audit Report to review the Grand Totals of the SARS code values per payroll and legal entity. The Tax Audit Report shows PTD, YTD, and Rollup values (the Rollup value is the total for the period between the start and end date parameter values).
You can run this report from the Submit Request window.
To run the Tax Audit Report:
In the Name field, select Tax Audit Report.
Click in the Parameters field.
Select the legal entity.
Select the start date and the end date.
Note: The start date and the end date must be within the tax year.
Select the payroll.
Optionally, select an assignment set to restrict the report to a group of assignments.
Click OK and then click Submit.
Run the Tax Audit Report - Detailed to review the SARS code values for each assignment. The Tax Audit Report - Detailed shows PTD, YTD, and the Rollup values (the Rollup value is the total for the period between the start and end date parameter values). The report is based on the selected assignment set.
You can run this report from the Submit Request window.
To run Tax Audit Report - Detailed:
In the Name field, select Tax Audit Report - Detailed.
Click in the Parameters field.
Select the legal entity.
Select the start date and the end date.
Note: The start date and the end date must be within the tax year.
Select the payroll.
Optionally, select an assignment set to restrict the report to a group of assignments.
Click OK and then click Submit.