Financial Year Procedure

Subsequent to changes brought by the Finance Act 2015, the fiscal year shall now end on 30 June instead of 31 December. Individuals would henceforth be liable to income tax on income derived by them during the preceding income year i.e. 1st July to 30th June.

This implies that on Sicorax Payroll, the payroll calendar year will be from January to December, and the fiscal year will be from July to June of the following year.

The financial year procedure should therefore be performed after the June final calculation and before doing July payroll calculation. This procedure will allow you to setup the new financial year parameters, print your Statement of emoluments and tax deduction, print your reconciliation statements, and file your 'Return of employees' electronically.

NB:

(1) Sicorax Payroll creates the new fiscal year automatically after June payroll final run, i.e it copies all previous year parameters, e.g PAYE threshold, PAYE Scale, Employee EDF's etc. to the new fiscal year.

(2) Tax Account Number: Section 99A of the Income Tax Act requires every employer to make necessary arrangements to obtain from MRA, the Tax Account Number (TAN) of every employee in respect of whom tax is required to be withheld. The TAN number should therefore be input in Sicorax Payroll for all concerned before doing the fiscal returns.

(3) You will have to validate the new fiscal year parameters with the MRA, MEF, etc. as and when required. Uniconsults will also inform you if ever the official figures are published.


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