Pay As You Earn (PAYE) is a system implemented by the South African Revenue Service (SARS) to collect taxes from employees. Employers deduct a certain amount from their employees’ salaries and pay it directly to SARS on their behalf. However, mistakes can occur during the submission of PAYE-related income tax returns, whether due to human error, misinterpretation of data, or incorrect calculations. In such cases, it’s important to know how to correct these errors to ensure compliance with SARS regulations. Thankfully, SARS provides a simple mechanism for correcting these errors through its online platform, eFiling.
This article will guide you through the process of correcting PAYE errors on your SARS submission and clarify some important points to keep in mind.
What is the Request for Correction Function on eFiling?
If you’ve made a mistake in your Income Tax Return (ITR), you can easily rectify it using the “Request Correction” function on SARS eFiling. This feature allows taxpayers to amend their previously submitted returns and submit updated information to SARS. By using this tool, individuals and businesses can ensure that they are not penalized for errors in the original submission and remain compliant with SARS’s requirements.
The “Request Correction” function is particularly useful when you’ve realized that there was an error in your PAYE submission. Whether the error relates to incorrect salary amounts, tax calculations, or incorrect PAYE amounts deducted, using the “Request Correction” feature ensures the correct figures are submitted.
How to Correct PAYE Errors on Your SARS Submission
Correcting PAYE errors is a relatively straightforward process on SARS eFiling. Below is a step-by-step guide to help you navigate the procedure:
Step 1: Log in to eFiling
The first step in correcting PAYE errors is to log in to your SARS eFiling account. If you don’t have an eFiling profile, you will need to create one. This can be done through the SARS eFiling website (www.sarsefiling.co.za). After logging in, you will have access to your tax records, and from there, you can initiate the correction process.
Step 2: Locate the Submitted Return
Once logged into eFiling, navigate to the “Returns” section, and find the specific return you wish to amend. For PAYE-related errors, look for the relevant Income Tax Return or the relevant tax period. If you are an employer, this would typically relate to the EMP201 or EMP501 submissions.
Step 3: Select the Request for Correction Option
After finding the return you want to amend, click on the “Request for Correction” button. This option will allow you to correct any errors in the return. Once selected, you will be prompted to fill in the details of the correction. The information you submit will override the details of the previous, incorrect submission.
Step 4: Make the Necessary Corrections
Once you’re in the correction screen, carefully review the original return and identify the errors that need to be corrected. You’ll need to amend the relevant fields, such as PAYE amounts, salary figures, tax codes, and deductions, based on the correct information.
Be sure to double-check the updated figures and ensure they are accurate. It is critical to ensure that no mistakes are made while revising, as submitting an incorrect correction may lead to further issues.
Step 5: Submit the Corrected Return
After making the necessary amendments, submit the corrected return to SARS through eFiling. Once the submission is complete, the eFiling status will change to “Correction Filed.” This indicates that the corrected return has been successfully submitted for processing.
Step 6: Monitor Your Correction
After submitting your correction, it is important to monitor the status of the correction. SARS will review the updated return, and you will receive feedback regarding whether the correction has been accepted or whether further information is needed. Keep an eye on your eFiling portal to ensure that everything is processed smoothly.
Important Conditions to Keep in Mind
Although the process for correcting PAYE errors is relatively simple, there are certain conditions and limitations to be aware of. Here are a few important points to keep in mind when requesting a correction:
1. When Requesting a Correction is Not Allowed
There are certain situations where a correction cannot be requested. These situations include:
- The Return is in an Issued or Saved State: If the return is in an issued or saved state, you cannot request a correction. It needs to be finalized before a correction can be submitted.
- Active Verification in Progress: If there is an active verification process for the return, you will not be able to request a correction. The verification needs to be completed before any amendments can be made.
- Active Audit Case: If an audit case is in progress, you will not be able to make changes. In this case, you will need to wait for the audit to be finalized.
- Estimate Performed by SARS: If SARS has performed an agreed estimate for Personal Income Tax, a correction cannot be requested.
- Finalized Audit or Revised Declaration: If SARS has already finalized an audit case or a revised declaration for your Personal Income Tax, no corrections can be requested.
- Supporting Documents Submitted for Active Verification: If you have submitted supporting documents for an active verification, a correction cannot be made.
If any of these conditions apply, you may need to follow alternative procedures or wait for the status of your return to change before submitting a correction.
2. Correction Status
Once you have submitted your correction, you can monitor its progress in the “Correction Filed” section on eFiling. If SARS requires any additional information, they may request further documentation or clarification. You must respond promptly to avoid delays in the processing of your correction.
3. Penalties and Interest
While making a correction helps ensure that the figures submitted to SARS are accurate, it is important to note that penalties and interest may still apply if the error led to underpayment of tax. SARS may impose penalties if the incorrect submission was due to negligence or deliberate withholding of information.
However, if you made a genuine mistake and promptly corrected it, SARS is typically more lenient and may not impose severe penalties. It is essential to take proactive steps to ensure that your correction is accurate and submitted on time to avoid unnecessary penalties.
Check also: Understanding Tax Thresholds: How They Impact Your PAYE Deductions in 2025
Correcting PAYE errors on your SARS submission is a vital process for maintaining compliance with South African tax laws. Request for Correction function on eFiling, you can easily amend your returns and resubmit them to SARS if you’ve made any mistakes. By following the steps outlined in this article, you can ensure that your tax return is accurate, minimizing the risk of penalties or audits.
Remember that while correcting errors is important, you should always strive for accuracy when submitting your original returns to avoid the hassle of corrections later on. If you are unsure about making corrections or need assistance, it may be worthwhile to consult a tax professional or accountant to guide you through the process.
