UIF RETURNS

[vamily0804]

I am confused. If I submit the EMP201 returns, which includes the uif amount and number of employees, do I still have to submit a return to the UIF fund each month?

[duncan drennan]

When employee remunerations that affect UIF contributions change you need to update that information with the UIF by filling in a UI-19 and submitting it to the UIF (fax/email/post). The actual payments are handled by SARS via EMP201.

The UI-19 must be completed and submitted when you either:

1. New appointments of employees
2. Termination of service of employees (resign, fired, retrenched, retired, etc.)
3. Change to employee remuneration

UI-19 submissions would typically be irregular, and EMP201's must be submitted each month.

[Dave A]

And still no sign of uFiling and eFiling hooking up to fill this rather obvious admin gap

[Marq]

And still no sign of uFiling

What and put thousands of incompetents out of "work".

Reminds me when I sat polishing benches in a UIF office a few years ago helping a friend collect (which never happened). Some guy behind us was lamenting at the time it was taking because he couldn't wait in long queues to collect his miserable UIF amount, as he had a job to get to.

[Dave A]

One of my companies did the retrenchment thingy in the third quarter of last year. Fortunately things have improved to the point where we've managed to rehire one of the unfortunates. I was horrified to hear that he hadn't received a single cent from UIF during the 3 months he was unemployed.

This is hour-of-need stuff! Unacceptable.

[vamily0804]

When employee remunerations that affect UIF contributions change you need to update that information with the UIF by filling in a UI-19 and submitting it to the UIF (fax/email/post). The actual payments are handled by SARS via EMP201.

The UI-19 must be completed and submitted when you either:

1. New appointments of employees
2. Termination of service of employees (resign, fired, retrenched, retired, etc.)
3. Change to employee remuneration

UI-19 submissions would typically be irregular, and EMP201's must be submitted each month.

Thanks Duncan, that was how I understood it too, until I came across the following on the Dept of Labour's site:

""Who Must Submit Declarations to UIF?
All employers must submit monthly declarations directly to the UIF, including those employers registered with SARS.""
At the following link

http://www.labour.gov.za/legislation/acts/basic-guides/basic-guide-to-uif-declarations

Now I don't know if I have to submit montly returns to the UIF fund?

[duncan drennan]

Now I don't know if I have to submit montly returns to the UIF fund?

The form that they are referring to and that you have to submit is the UI-19. If you look at the paragraph at the top of the UI-19 form it is quite clear which circumstances require a declaration (which is as per your and my understanding).

[duncan drennan]

I think the relevant part of the Unemployment Insurance Contributions Act is this,

10. (3) The employer must, before the seventh day of each month, submit to the Commissioner or the Unemployment Insurance Commissioner, whichever is applicable to such employer in terms of section 8 or 9, such information relating to its employees as the Minister may prescribe by regulation, including details relating to-

(a) the termination of the employment of any employee; and

(b) the appointment of any employee by the employer.

My interpretation is that any applicable declarations or changes must be made before the 7th of each month (where "each" means Jan/Feb/Mar, etc. rather then "every" month)

[Dave A]

""Who Must Submit Declarations to UIF?
All employers must submit monthly declarations directly to the UIF, including those employers registered with SARS.""
At the following link
http://www.labour.gov.za/legislation...f-declarations

Oh that is glorious!

The section that Vamily points to has this immediately under it:
Based on Legislation in Section 10, of the Unemployment Insurance Contributions Act.

Section 10 deals with surplus and deficit funds and has nothing to do with monthly submission of returns.

Anyway - to make sense of it all - I believe the idea is we send through changes in a monthly return, not individually as each change happens. So if we had 3 changes in a month, we'd only send this information once on 1 form.

[vamily0804]

Thanks, what a relieve! I thought I have to go back years submitting outstanding returns !

[Yvonne]

Our company made use of a payroll service, but I have just found out that they did not do the UIF U-19 forms for the last year.

I am paid up, but wondered if there were penalties and interest payable for being in default with submitting the form.

I know of someone who got behind in her UIF for her domestic and is now too terrified to contact UIF.
Has anyone in the forum ever heard of the UIF laying charges for non payment, as all I can find on the site is Penalties or Imprisonment or Both.

Yvonne

[Dave A]

If you look at how disjointed the data collection is, I struggle to comprehend how UIF keeps track of contributions made on an ongoing basis at the per-individual level.

I suspect the rubber really meets the road when an employee goes seeking their unemployment benefits. At this point DoL is processing a start date, end date and latest salary. That would probably be the time to start sweating as an employer if you haven't been making your payments.

Other than DoL inspectorate checks to see that we're registered, I've never had anyone from DoL dive into the numbers to double check our calculations. I've got a sneaky suspicion the e@syFile system is going to become more intrusive over time, though.

[Yvonne]

Can anyone settle an argument for me!

A labor consultant advised that UIF was payable only on the basic salary, or any regular benefit, ie. The total amount which would be taken into account when calculating payment of the person applying and receiving any benefits from UIF.
Which is not possible for overtime, end of year bonus, birthday bonus etc.
Which sounds as if this is the way it should be!

But as far as I know and all I seem able to find on the UIF website it that total amount paid to an employee - With the only exception being commission! is the figure to be declared.

Anyone able to confirm the correct total to be declared?
Ie: Basic, Inclusive of Medical Aid, Plus Taxable Benefit for a Company Vehicle/ or travel allowance, Plus R.A., Plus overtime, plus leave pay, ie ANY Payment made except commission?

Many thanks
Yvonne

[vamily0804]

What happens if an employee receive commission? Do i submit a form each month?

[Yvonne]

As I read it, there is no UIF on commission, unless they are of a regular, fixed nature, so you would not have to submit the UI-19. but you would have to submit the UI-19 for any portion of earnings which are NOT commissions.

I am so hoping that someone who works regularly with payrolls answers this thread!

Yvonne