Is the Covid-19 TERS benefit only applicable to those employees who are not working or can employers apply for all employees regardless of whether they are working or not?
Author: The Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
TERS benefits can be applied in respect of all employees who are affected due to the lockdown, including employees who have been paid less than they normally would have received have they worked for a full month.
However, if the employee is still working (at less hours per month), the remuneration that will be paid to the employee would have to be declared on the TERS application as this will have an effect on the TERS benefit calculated by the fund. The TERS benefit plus the remuneration paid during the month may not exceed the employee’s normal monthly salary.