The Tax Authority today launched a number of new developments within the digital system for reporting on leaving a job that went live in January 2024. The first development allows employers to report to the Tax Authority in a centralized manner the departure of a large number of employees, instead of reporting each employee who leaves separately, as was the case until now. This development will be especially helpful for companies that employ a large number of employees, and are required to report a large number of departures each month, due to retirement or changing jobs.
Along with this development, the option has been added for employees to perform all actions related to arranging retirement bonus funds (saving money for retirement, tax-exempt and non-tax-exempt withdrawals, severance payments) without using paper forms and without visiting the Tax Authority offices. Until now, a fully online process could only be performed in cases where the employee chose to save the retirement bonus funds for retirement.
In addition, the option has been added for software companies to report a draft Part A report on behalf of the employer, and to save the report to the interface for employers. In these cases, the software companies transmit drafts and the employer approves the report. The option is open to employers who have defined a file structure in accordance with the Tax Authority’s guidelines for transferring them to the digital system.
The digital system for reporting on leaving a workplace was developed by the Tax Authority’s Taxation and Auditing Unit and the Tax Authority’s Assessment and Audit Division in cooperation with the National Digital System and the Capital Market, Insurance and Savings Authority. It was recently renamed the “Kochav System”, after the project manager, the late Avraham Stern, who passed away prematurely. The system’s goals are to simplify and streamline reporting on leaving a workplace, thereby easing the bureaucratic burden on employers, employees, and the institutional bodies that manage the public’s pension savings.
Additionally, the use of the digital system prevents errors in reporting and allows citizens to easily retrieve data from jobs they have left in the past. In addition, the system provides an improved user experience that includes comprehensive and easy-to-understand explanations regarding the significance of decisions made by the employee regarding compensation funds, which are embedded within the reporting processes. Since the “Star System” was put into use, over 200,000 job departures have been reported.