Please advise: 1. Where an employee earns R3000 a month and UIF TERS gives that person R4027, do we pay the whole amount to the employee? UIF said that the employee must not get more than their normal salary. 2. Now that TERS want to pay staff directly, i
Author: The Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
The TERS benefit may not be greater than the employees full monthly salary, therefore, if the TERS benefit calculated by UIF is greater, I suggest you only pay the amount up to the full monthly salary and refund the result to TERS. Although the TERS benefits are not to be paid directly to the employees, employers are still required to apply on behalf of the effected employees for TERS benefits. If you run an electronic payroll, the payroll should be able to provide you with the UIF declaration file. This file should then be submitted to UIF as per the prescriptions found in the Business Requirements Specifications E03 (see attached) – which is normally an email with the attached file send to declarations@labour.gov.za Should the employer not run an electronic payroll, or an UIF declaration file is not available, the declarations should be done on uFiling by manually capturing the employee’ details for each month since they are employed. Please refer to the following link: http://www.labour.gov.za/uif_how_to_do_uif_declarations.