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What must I know about UIF

What must I know about UIF?

UIF (Unemployment Insurance Fund) declarations is deducted as 1% of UIF income of each employee, coupled with 1% that the Employer contributes as well. Thus totalling a 2% contribution per month.

What is included in UIF income?

  • taxable income
  • taxable fringe benefits
  • 80/20 of travel allowance
  • bonus
  • RA contribution (Employer)

What is excluded from UIF income?

  • pension fund / RA contributions
  • pensions, annuities, payment to Labour Broker
  • payments for loss of employment, e.g. Retrenchment
  • once off lump sum payments
  • restraint of trade
  • commission
  • payments to juristic persons (e.g. companies)
  • payments to independent contractors
  • re-imbursive travel
  • SARS eFiling
    SARS eFiling

What must I know about UIF?

Important to realize that monthly UIF contributions is paid via e-Filing or u-Filing before the 7th of the following month (or previous working day if 7th falls over weekend).

Submit and pay the Monthly Employer Declaration (EMP201) on eFiling. Even though it contains complete submission of PAYE, SDL & UIF in the declarations .

 

Whereas uFiling can also be used to submit & pay UIF declarations only. View and amend your monthly UIF declarations in a easy-to-use 5-year page view.

UIF declarations view

Find detailed uFiling System User Guide

 

Unless an employee works less than 24 hours per month, all employees and their employers, are responsible for contributions to the UIF.

When making use of a Payroll system, it is easy to generate the monthly UIF declaration file, which must be emailed to declarations@labour.gov.za

Ensure that your declarations-file is received, and a “received, with no errors” email is returned, to the UIF-official, as per your Payroll setup.

 

Refer to our previous article on 2020 Individual tax rates for further Payroll information.

Lastly for any queries, refer to UIF Frequently asked questions

2 Comments

  1. Tracy
    2 December 2020

    How do we go about submitting a declaration on Ufiling if we have more than 100 employees? It states the “upload may take time depending on the size of the file and number of employees. No file containing more than 100 employees is allowed.” Do we then separate our file to 100 employees each and upload multiple files or would it be best to simply continue emailing to declarations@labour… ?

    1. Dear Tracy,

      The U-filing system was originally created for Domestic employees, and hence the limitation.
      Please try to limit your upload batches to just under 100, and upload multiple files.
      Once your employees are uploaded, the monthly maintenance should be less problematic.

      The alternative option is to make use of the emailing file to declarations@labour.gov.za from within your Payroll program, which is equally effective.

      Hope this helps!

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