SARS warns that it will be imposing administrative penalties for PAYE where employers have failed to submit EMP501s
SARS has indicated that as from July 2021 it will start to impose administrative penalties in respect of PAYE where an employer has failed to submit the annual Employer Reconciliation Declaration Form (“EMP501”).
SARS have indicated that PAYE administrative penalties will be implemented in 1% increments over a period of 10 months from June 2021 in respect of the reconciliation ending 28/29 February 2021 and for subsequent years. The imposition, adjustment or cancellation of the PAYE administrative penalty will be communicated to the employer through the Notice of Penalty Assessment (EMP301) and the statement of account (EMPSA) via the following channels:
- eFiling and / or e@syFile communication centre; or
- e-mailed to the employer if the employer is not a registered eFiler.
The announcement is made on the SARS website, given that employers had to submit their EMP501s by the deadline of 30 June. These PAYE penalties are not new, but from the announcement it would seem that SARS intends on enforcing the penalty on a more regular basis.
The guide on how to submit a dispute via eFiling can be accessed here
09/07/2021
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