EMP201 Late Submission: PAYE Penalties for Employers

EMP201 Late Submission Penalties for Employers

The EMP201 is the Monthly Employer Declaration that all registered employers must submit to SARS. It declares the PAYE (Pay-As-You-Earn), UIF (Unemployment Insurance Fund), and SDL (Skills Development Levy) amounts deducted from employees' salaries.

Late submission of the EMP201 attracts a penalty of 10% of the PAYE liability for each month the return is overdue. This is separate from, and in addition to, any ANC penalty that may also be imposed.

EMP201 Deadline

The EMP201 must be submitted by the 7th of each month for the preceding month's payroll. For example, the EMP201 for March 2026 is due by 7 April 2026.

Payment of the declared amounts must also be made by this date. Late payment attracts a separate 10% late payment penalty plus daily interest.

How the Penalty Accumulates

The 10% per month penalty accumulates and is capped at 200% of the original liability (20 months). For example, if your PAYE liability is R50,000 per month:

• 1 month late: R5,000 (10%)
• 3 months late: R15,000 (30%)
• 6 months late: R30,000 (60%)
• 12 months late: R60,000 (120%)
• 20+ months late: R100,000 (200% — capped)

Use our PAYE Late Submission Calculator to see the full month-by-month breakdown for your situation.

What Employers Should Do

• Submit all outstanding EMP201 returns immediately — this is the first priority.
• Set up a payroll calendar — ensure EMP201 submissions are made on time every month.
• Consider using payroll software — most payroll systems can automate EMP201 generation and submission.
• Request penalty remission — if this is a first offence or there are extenuating circumstances, apply for remission under Section 217.