The Unemployment Insurance Act of 2001 and the Unemployment Insurance Contributions Act of 2002 govern the Unemployment Insurance Fund (UIF). As employer, you must register to submit UIF returns and pay contributions if you are registered with SARS for Employees Tax.
You must register for submission of UIF returns and contributions at SARS or the Unemployment Insurance Fund. If you don’t need to register for Employees Tax, you must register with the UIF instead of SARS. You also register with the UIF if you have not registered voluntary with SARS as an employer.
You must pay a total contribution of 2% of the employee’s earnings. As employer, you must contribute 1% and can thus only deduct 1% from the employee’s remuneration as their contribution.
The contribution must be paid within seven days after the month end during which you deducted the amount from the employee’s salary. You need to submit the payment on the last business day before a public holiday or a weekend, if the last day of payment due falls on a weekend or a public holiday.
It is extremely important to follow correct procedure in calculations. For one, you may not include excess amounts as earnings for calculating the required UIF contribution. You, furthermore, need to complete the EMP201 form. It is the Monthly Employer Declaration in which you state the total amount paid, as well as the allocation for SDL, UIF, PAYE and ETI as relevant.
How to Make Payments
Payments are made via the eFiling system, EFT or at a branch of one of the SARS approved banks. Ensure compliance with statutory requirements. Streamline your tax and employer contribution calculations by making use of our professional assistance with UIF returns and payments.
For more information about UIF returns, please feel free to contact our team at Tax Leaders today.