TSS Payroll
SARS Guide

EMP201 Penalties: What SARS Charges for Late Submission

SARS enforces the EMP201 deadline strictly — there's no grace period, and penalties accrue automatically once the 7th of the month passes.

The 10% penalty

If PAYE, UIF and SDL aren't paid in full by the due date, SARS charges a 10% penalty on the outstanding amount. This applies whether the return was late, the payment was late, or both.

Interest on top

In addition to the 10% penalty, SARS charges interest on the outstanding balance at the prescribed rate, calculated daily from the due date until payment. Interest continues accruing even after the 10% penalty has been applied.

Understatement penalties

If SARS finds that an EMP201 understated the amount actually owed — whether by error or omission — additional understatement penalties can apply, on a sliding scale depending on the behaviour involved (from a simple "no fault" case up to intentional evasion).

Can penalties be waived?

Yes — SARS can remit penalties (though not usually interest) where there's a valid reason for the default, such as a first-time error, a system outage, or exceptional circumstances. This requires a formal request for remission via eFiling, with supporting evidence. It is not automatic.

How to avoid penalties

  • Submit and pay by the 7th every month — set a reminder several days earlier, not on the day
  • Reconcile payroll figures before submitting, not after
  • Keep enough cash flow buffer to cover the full PAYE/UIF/SDL liability every month
  • If a payment will be late, submit the return on time anyway — this avoids compounding a late-payment penalty with a late-submission penalty

People Also Ask

What is the penalty for a late EMP201?

SARS charges a 10% penalty on the outstanding PAYE, UIF and SDL amount for any EMP201 not paid by the 7th of the following month, plus interest at the prescribed rate on the outstanding balance.

Does SARS charge interest as well as the penalty?

Yes — interest accrues daily on the outstanding balance in addition to the 10% penalty.

Can EMP201 penalties be waived?

Sometimes — SARS can remit penalties for valid reasons via a formal request for remission, but it isn't automatic.

Related Resources

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