My query is wrt UIF tax, if an employee retires and then go back to work and they are over 65 do they have to pay UIF? Does a learner who gets paid a minimum stipend of R960 have to pay UIF? Also what if someone takes early retirement after 60 and then co
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
In terms of section 1 of the Unemployment Insurance Contributions Act, 2002, “employee” means any natural person who receives any remuneration or to whom any remuneration accrues in respect of services rendered or to be rendered by that person, but excludes an independent contractor.
Section 4 provides that this Act applies to all employers and employees, other than -
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an employee and his or her employer, where such employee is employed by that employer for less than 24 hours a month;
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employees under a contract of employment contemplated in section 18(2) of the Skills Development Act, 1998 (Act No. 97 of 1998), and their employers;
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an employee and his or her employer, where that employee has entered the Republic for the purpose of carrying out a contract of service, apprenticeship or learnership within the Republic if upon the termination thereof the employer is required by law or by the contract of service, apprenticeship or learnership, as the case may be, or by any other agreement or undertaking, to repatriate that person, or if that person is so required to leave the Republic”.
There is no exemption on the basis of age, and the exception for a learner only applies to non-residents.
The following is mentioned on http://www.labour.gov.za/DOL/legislation/acts/basic-guides/basic-guide-to-uif-unemployment-benefits
Employees in receipt of an old age pension are; since 07/02/2007, no longer excluded from contributing towards UIF.