A definitive guide to UIF for employers
Dear employers, this will tell you everything you need to know about UIF so read carefully. The Unemployment Insurance Fund (UIF) essentially serves as a safety net for employees who are retrenched or unable to work due to maternity leave, for example. Okay, that you already know. Let’s carry on.
When do the Unemployment Insurance Act and Unemployment Insurance Contributions Act apply?
These acts apply to all employers and employees unless:
- Employees are working less than 24 hours a month for an employer
- Public servants
- Employees who receive a monthly State pension
- Employees who only earn commission
Important note: Domestic employers and their workers were included under the act since April 2003.
As the employer, you are responsible for deducting the employees 1% contribution from his/her salary and combine it with your 1% which then gets paid to the Fund. It is absolutely vital that all of your employees are registered for UIF.
Both the employer and employee’s contributions must be paid before the 7th of the new month.
As an employer, you may not:
- Deduct more than 1%
- Deduct the outstanding amounts should you fall behind with payments
- Request a fee for deducting the money
The following employees cannot claim from the UIF, thus employers should not deduct UIF from their salaries:
- People who do not earn a salary. They are paid only for what they sell or make
- People who work less than 24 hours per month
- Sole traders who are employers
- Someone who does piece work at a different premises
Where can you register for UIF
Employers need to complete the relevant forms for both themselves and their employees. The application forms are available at the Department of Labour or www.labour.gov.za.
Let Ubuntu Resource Management take a load off
Our team of expert payroll managers can take care of all of your company’s arduous tasks therefore freeing your team up to focus on the more important elements of growing your company. We can take care of not only your UIF tasks but also:
- Monthly/Weekly payroll
- Processing and issuing Payslips
- IRP 5 Returns
- All 3rd Party Payments
- Admin Reports
- PAYE, WCA and Bargaining Council Returns
Give us a call on 011 794 9858 or email email@example.com and let’s get together to discuss your payroll requirements. Let’s start saving you time, money and resources.