PAYE Reconciliation - Penalties and Interest

[J7J]

Hi,

Where do I put the Penalties and Interest paid on late submission of EMP201 during the year on the declaration?

[Dave A]

If you're talking about filling out the EMP501 declaration, do not include penalties and interest in the figures at all.

[J7J]

If you're talking about filling out the EMP501 declaration, do not include penalties and interest in the figures at all.

Say you only paid a portion of the PAYE for November 2011 with the December 2011 PAYE and paid the appropriate penalties and interest with the December 2011 PAYE for late payment of this portion... Where do you allocate the actual PAYE amounts (excluding interest and penalties)?

[Dave A]

Not really a problem I've ever had to deal with.

Let's split this into the clear segments they shoud be.

First, you'll have the amounts you reported as due per your EMP201's in the PAYE, SDL and UIF columns. Obviously penalties and interest has nothing to do with this section.

Second, you'll have the payments actually made in the payments column. This should reflect the total payment made towards PAYE, SDL and UIF, but should exclude payments made for penalties and interest.

My best suggestion as to which month's return you match payments up with is:

• Make sure any month where you paid on time, the value reflected against that month is correct to the amount that should have been paid.
• If you paid extra in that month (excluding penalties and interest obviously), allocate it against the month you made the extra payment for.
• If any month still remains paid short by 7th February 2012, make sure the shortfall is in the month that was shortpaid.

When it comes to SARS calculating what you owe them for late payments, they're going to do their own thing anyway - I'm not sure the EMP501 is going to change that much.