This notice appears on the SARS website.
A number of Employers have still not complied with 3 June 2011 submission for the annual Employer Reconciliation Decleration and as a result, SARS will now, impose penalties in relation to PAYE transgressions, allowed in terms of the 4th schedule of the Income Tax Act no 58 of 1962.

For PAYE Tax, the administrative penalty will be imposed:

Where the employer:

1) Does not submit the annual EMP501 reconciliation

2) Does not pay the total PAYE amount that was declared in the Employee Tax Certificates[IRP/IT3(a)] over to SARS, even where the return has been submitted on time, andSubmits incorrect, incomplete or inaccurate data within the IRP/IT3(a) certificates, evenwhere the return has been submitted on time.

Then  a percentage based penalty equal to 10% of the total PAYE paid for the period (this is a once off penalty), and there will be an adjustment of the penalty, calculated on a percentage sliding scale

based on the date that the non-compliance was remedied over a period of 9 months, e.g if the

remedied in the first month from imposition, then the 90 % of the 10% penalty will be waived.