The following is the News flash 2022-19 published by the PAGSA regarding Penalties for late submission of EMP501

EMP501SUBMISSIONS:LATE SUBMISSION PENALTIES AND REQUEST FOR REMISSION

SARS have issued a notice that is of particular importance for employers during the employer’s filing season that ends on 31 May 2022.

The SARS notice clarifies that:
1. Administrative penalties will be raised on late (i.e. submitted after 31 Mary 2022) or non-submissions of EMP501 reconciliations.
2. The manually submitted ADR1 and ADR2 process for appeals will be replaced from 23 April 2022 by enhancing the SARS eFiling request for remission and disputes process.

The SARS Notice follows.

Dear Employer,

PAYE PENALTIES: ADMIN PENALTIES – REQUEST FOR REMISSION, OBJECTION OR APPEAL PROCESS

In 2021, SARS implemented administrative penalties on the late or non-submission of EMP501 Employer Reconciliation Declaraions.

To dispute these administrative penalties, Employers were requested to use the manual ADR1 for objections and the ADR2 for appeals. This was as a result of the electroric dispute process not being available on eFiIing in respect of the late payment and administrative penalties levied.

In an effort to improve its service offering SARS will, as of 23 April 2022, allow for taxpayers to request remission ard dispute their PAYE administrative and late payment penalties on the existing dispute process on eFiing- SARS will, therefor, no longer accept manually filed PAYE disputes and remission requests as from 23 April 2022.

Sncerey,

THE SOUTH AFRICAN REVENUE SERVICE

23 April 2022