PAYE Penalties: Application for remission, objection or appeal.

In 2021, SARS introduced administrative penalties for late or non-filing EMP501 Employer Reconciliation Declarations.

To contest these administrative penalties, employers were required to use the manual ADR1 for objections and the ADR2 for appeals. The electronic dispute resolution process for the late payment and administrative penalties levied was not available on eFiling.

From 23 April 2022, taxpayers will be able to apply for remission and challenge through eFiling. PAYE administrative and late payment penalties for the existing dispute process have been added to improve SARS’ service offering. SARS will, therefore, no longer accept manually submitted PAYE disputes and remission applications.

The Annual Reconciliation Declaration (EMP501) submission period opens on 1 April and closes on 31 May.