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UNEMPLOYMENT INSURANCE FUND (UIF)

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					UNEMPLOYMENT INSURANCE CONTRIBUTIONS
GUIDELINE TO EMPLOYERS

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TABLE OF CONTENTS

1. 2. 3. 4. 5. 6. 7. 8. 9. 9.1 9.2 9.3 10. 11. 12. 13. 14. 15. 16. 17. 17.1 17.2 17.3

Introduction …………………………………………………………………………………………….. Who must contribute to the Fund ……………………………………………………………………. To Whom must contributions be paid – SARS or Unemployment Insurance (UI) Commissioner ………………………………………………………………………………………….. Registration for Payment of UIF Contributions …………………………………………………….. Calculation of Contribution ………………………………………………………………………..… Employer must deduct Employee’s Contribution …………………………………………………… Remuneration – What is Included and Excluded ………………………………………………….. UIF Exclusions – Amounts Excluded from Remuneration for UIF Purposes …………………… Payment of UIF Contributions ……………………………………………………………………….. Due Date for Payment …………………………………………………………………….… Monthly Returns …………………………………………………………………………….. Bank Payments to SARS …………………………………………………………………... Refunds ………………………………………………………………………………………………… Interest and Penalties ………………………………………………………………………………… Duty of Employers to Provide Particulars of Employees ……………………………………….... Other Important Definitions ……………………………………………………………………..…… Application of Income Tax Act ………………………………………………………….…………... Offences ………………………………………………………………………………….………….… Forms …………………………………………………………………………………………………… Tables ………………………………………………………………………………………………..… Calculation of Remuneration for PAYE, SDL and UIF Purposes …………………….… Calculation of Amounts Payable ………………………………………………….……….. Allowable PAYE Deductions, SDL and UIF Exclusions …………………………….……

3 4 5 5 5 6 6 7 7 7 8 9 9 9 10 10 11 11 11 12 12 12 13

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UNEMPLOYMENT INSURANCE CONTRIBUTIONS GUIDELINE TO EMPLOYERS

1.
1.1

INTRODUCTION
On 1 April 2002 two new Acts, namely the Unemployment Insurance Act, No. 63 of 2001 and the Unemployment Insurance Contributions Act, No. 4 of 2002, came into operation. These two new Acts provide the framework for the new unemployment insurance system in South Africa. The Unemployment Insurance Contributions Act deals with the collection of the contributions to fund the Unemployment Insurance Fund (UIF) while the Unemployment Insurance Act deals with benefits to which contributors (employees who contribute or dependants of contributors) are entitled. The new legislation does not introduce the payment of UIF contributions for the first time in South Africa, as Unemployment Insurance was already introduced in 1946. What it does, however, is to extend the coverage of workers in the labour market. As an example, employees earning more than the current UIF income threshold (R 97 188 per annum/R 8 099 per month) will now also be included in the UIF system. The same statutory benefits provided for in the previous legislation are still available to contributors in terms of the new legislation. These benefits are the following – • Unemployment benefits; • Maternity benefits; • Illness benefits; • Dependants’ benefits; and • Adoption benefits. This guideline does not deal with the Unemployment Insurance Act, as it is administered by the Department of Labour through the Unemployment Insurance (UI) Commissioner. Any enquiries regarding UIF benefits, claims and the payment of benefits should be directed to the UI Commissioner. The purpose of this guideline is to assist employers and employees to understand the requirements of the Unemployment Insurance Contributions Act. The Unemployment Insurance Contributions Act (UI Contributions Act) provides for the imposition and collection of the contributions to the UIF and is administered by the Commissioner for the South African Revenue Service (SARS). This is a basic guide and not intended for legal reference. Enquiries regarding UIF contributions should be directed to local SARS branch offices.

1.2

1.3

1.4

1.5

WHAT IS THE UNEMPLOYMENT INSURANCE FUND (UIF)
The unemployment insurance fund has been established in order to provide short-term relief to workers when they become unemployed or are unable to work because of illness, maternity or adoption leave and also to provide relief to the dependants of the deceased contributor in terms of the Unemployment Insurance Act.

1.6

WHAT ARE UNEMPLOYMENT INSURANCE FUND (UIF) CONTRIBUTIONS
Contributions to the UIF are the compulsory contributions payable in terms of the Unemployment Insurance Contributions Act to fund the benefits available to workers in terms of the Unemployment Insurance Act. The bulk of the contributions are collected by SARS with effect from 1 April 2002 and will be transferred to the Unemployment Insurance Fund that is administered by the Unemployment Insurance Commissioner.

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2.
2.1

WHO MUST CONTRIBUTE TO THE FUND
Every employer and employee to whom the UI Contributions Act applies must, on a monthly basis, contribute to the Unemployment Insurance Fund. The UI Contribution Act applies to all employers and employees, other than – • • • • employees employed for less than 24 hours a month with a particular employer; employees who receive remuneration under a learnership agreement registered in terms of the Skills Development Act,1998 (Act No. 97 of 1998); employers and employees in the national and provincial spheres of government; and employees who enter 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 that person is so required to leave the Republic. Note: The UI Contribution Act will only apply to domestic and seasonal workers and their employers 12 months after the Act takes effect.

2.2

2.3

Employers in the national and provincial spheres of government who are excluded from the UI Contributions Act and who receive monthly returns from SARS should indicate their UIF Remuneration and UIF Amount Payable as “nil” on such returns.

3.
3.1

TO WHOM MUST COMMISSIONER

CONTRIBUTIONS BE PAID

– SARS

OR

UNEMPLOYMENT INSURANCE (UI)

Contributions must be paid by employers either to SARS or to the UI Commissioner, whichever is applicable to the particular employer. • SARS Employers who – • are liable to register with SARS for the payment of employees’ tax (PAYE) and/or skills development levy (SDL) purposes; or • have registered voluntarily with SARS for the payment of PAYE purposes, must pay the UIF contributions on a monthly basis in respect of all its employees to SARS. Those employers who are not liable to register with SARS for PAYE and/or SDL purposes but are liable for the payment of UIF contributions must continue to pay such contributions in respect of all its employees to the UI Commissioner.

•

UI Commissioner

3.2

Where an employer, who normally pays UIF contributions to the UI Commissioner, registers with SARS for PAYE and/or SDL purposes, SARS will advise the UI Commissioner accordingly. This will ensure that monthly returns are issued by SARS and not by the UI Commissioner from the relevant liability date. If an employer’s name is removed from the SARS list of active employers, the UI Commissioner will also be advised thereof.

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4.
4.1

REGISTRATION FOR PAYMENT OF UIF CONTRIBUTIONS
An employer to whom the UI Contributions Act applies must apply for registration with SARS or the UI Commissioner, whichever is applicable to such employer, for purposes of paying UIF contributions. Every person who becomes an employer after 1 April 2002 or was an employer before this date, but has not yet been registered for the payment of PAYE and SDL with SARS or for UIF purposes with the UI Commissioner, must– • • • • • apply to SARS to register for the payment UIF contributions under the following circumstances – PAYE/UIF - if liable for the deduction and payment of PAYE (i.e. where employees who earn more than the tax threshold are employed), SDL/UIF - if liable for the payment of SDL (i.e. where the employer is NOT liable for the payment of PAYE but the total remuneration to all its employees during the following 12 month period will exceed R 250 000) or PAYE/SDL/UIF if liable for the payment of PAYE and SDL. apply to the UI Commissioner to register for the payment of UIF contributions if he/she does not fall under any of the above categories.

4.2

Note: If an employer is registered with SARS for PAYE and/or SDL purposes, such employer will automatically be registered for UIF purposes. 4.3 All employers, who were registered with SARS for the payment of employees’ tax (PAYE) and/or Skills Development Levy (SDL) at 1 April 2002, have automatically been registered for UIF purposes. No application for registration forms needs to be submitted by these employers. Those employers who were registered with the UI Commissioner for the payment of UIF contributions as at 1 April 2002 and who could not be identified on the SARS register for PAYE purposes will remain on the UI Commissioner’s register. No application for registration forms for the payment of UIF contributions needs to be completed by these employers. Application for registration as an employer with SARS must be made on an EMP 101 form. The completed EMP 101 form should be submitted to the SARS branch office in which area the business is situated.

4.4

4.5

5.
5.1

CALCULATION OF CONTRIBUTION
UIF contributions payable by employers on a monthly basis are calculated at 2% of remuneration paid or payable to each of their employees during that month. The amount of the contribution payable – • by an employee, is 1% of the remuneration paid or payable by the employer during any month; and • by an employer, is 1% of the remuneration paid or payable by the employer to that employee during any month. The contributions are based on the remuneration as calculated for PAYE purposes BEFORE the deduction of allowable contributions to pension and retirement annuity funds and, where applicable, medical aid contributions. UIF contributions do not apply to so much of the remuneration paid or payable during any month that exceeds an amount (currently R 8099 per month) determined from time to time by the Minister of Finance. The 2% contribution is therefore only levied on the first R 8 099 paid or payable to an employee during a month. Employees who earn more than R 8 099 per month are therefore also liable for the payment of the UIF contributions with effect from 1 April 2002, but only in respect of R 8 099 of their monthly salary.

5.2

5.3

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Example: Employee earns UIF contribution only applicable on Employee’s contribution equals (R 8 099.00 x 1%) Employer’s contribution equals (R 8 099.00 x 1%) Total contribution due equals (R 80.99 + R 80.99)

R 9760.00 per month R 8099.00 per month R 80.99 R 80.99 R 161.98

6.
6.1

EMPLOYER MUST DEDUCT EMPLOYEE’S CONTRIBUTION
An employer must on a monthly basis deduct or withhold the employee’s 1% contribution from the remuneration paid or payable to that employee during that month. Where the remuneration of the employee is paid at intervals other than on a monthly basis, the employer must deduct the employee’s contributions as coincides with the intervals (daily, weekly, fortnightly) of payment of remuneration. When deducting the employee’s contribution, the employer may not – • deduct amounts in excess of the amount due by the employee; • seek or receive a fee from the employee for complying with this Act; or • deduct arrear contributions after the end of the financial year during which it was payable. Where the employer fails to deduct the contribution, the employer shall be liable for payment of such contributions. If any payment includes an amount which was deducted, and it subsequently becomes known that the payment was not due or payable, or was in excess of the amount due and payable, the employer must refund to the employee such amount as has been deducted or withheld and overpaid by the employer, despite the amount not having been refunded to the employer by the Commissioner or the UIF Commissioner. (See par. 10 “Refunds”.)

6.2

6.3

6.4

6.5

7.

REMUNERATION – WHAT IS INCLUDED AND EXCLUDED

Remuneration means any amount of income that is paid or payable to any person whether in cash or otherwise and whether or not in respect of services rendered as applicable for PAYE purposes. The following examples indicate as to what is included and excluded. INCLUSIONS The following are included in the definition of “remuneration” – • salary • leave encashment • remuneration for overtime • superannuation allowance * • fees • emolument • retirement allowance * • bonus • allowances • commission * • wage • voluntary awards • annuity * • restraint of trade payments * • gratuity • pension * • lump sum payments * • stipend • directors remuneration • an amount received or accrued in commutation of amounts due in terms of a contract of employment or service • an amount received or accrued in respect of the relinquishment, termination, loss, repudiation, cancellation or variation of an office or employment or of an appointment * • 50% of an allowance paid or advance given to an employee or holder of a public office in respect of the expense of travelling for business purposes (excluding an allowance paid for actual distance travelled for business purposes, at a rate not exceeding the rate per kilometre fixed by the Minister of Finance in the Government Gazette) • 50% of an allowance paid to a holder of a public office • fringe benefits received in terms of the Seventh Schedule to the Income Tax Act

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•

*
General EXCLUSIONS

a gratuity received by or accrued to a person from his employer because such person obtained a university degree or diploma or has been successful in an examination Note: See par.8 UIF Exclusions – Amounts excluded from remuneration for UIF purposes The following are specifically excluded from “remuneration” and consequently no UIF contributions are payable in respect of such income –

Any amounts paid or payable to common law independent contractors (which does not include contractors who are subject to the control or supervision of any person as to the manner in which their duties are performed or as to the hours of work or if the amounts paid or payable to them are payable at regular daily, weekly, monthly or other intervals). • Any pension or allowance in terms of any of the following Acts: • Aged Persons Act • Blind Persons Act • Disability Grants Act • Children’s Act • Amounts paid to an employee to reimburse the employee for actual business expenses incurred (i.e. expenses incurred on behalf of the employer on an agency basis), in the course of employment. • Any allowance or advance in terms of an order of divorce or decree of judicial separation or agreement of separation.

•

8.

UIF EXCLUSIONS - AMOUNTS EXCLUDED FROM REMUNERATION FOR UIF PURPOSES
Remuneration for UIF purposes does not include any amount paid or payable to an employee – • • • by way of commission. by way of any pension, superannuation allowance or retiring allowance; which constitutes an amount contemplated in the following paragraphs of the definition of gross income; (a) - by way of annuity, (cA) - as compensation for any restraint of trade, (d) - including any voluntary award received or accrued in respect of the relinquishment, termination, loss, repudiation, cancellation or variation of any office or employment or of any appointment, (e) - lump sum benefits from any pension fund, provident fund or retirement annuity fund, (eA) - lump sum benefits from a pension fund (where the rules provide that on retirement a portion of the benefit has to be taken in the form of an annuity, etc.);

UIF EXCLUSIONS

9.
9.1

PAYMENT OF UIF CONTRIBUTIONS
DUE DATE FOR PAYMENT - Employers must on a monthly basis pay the amount of all employees’ contributions and the employer’s contributions to SARS or the UI Commissioner, as the case may be, not later than seven (7) days after the end of the month in respect of which such contributions are payable. • The contributions in respect of April are therefore payable not later than 7 May.

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Where the seventh day falls on a Saturday, Sunday or public holiday, the payment must be made not later than the last business day prior to such day. Late payments will be allocated firstly towards penalty, then towards interest, thereafter towards UIF contributions and lastly towards additional penalty (where applicable). EMPLOYERS SHOULD NOT SUBMIT UIF PAYMENTS IN RESPECT OF ANY MONTH BEFORE APRIL 2002 TO SARS. All contributions due in respect of a month before April 2002 must be submitted to the UI Commissioner’s office as in the past.

9.2

MONTHLY RETURNS - The prescribed monthly EMP 201 return for submission together with the payment of PAYE, SDL and UIF contributions will be issued by SARS to all employers registered with SARS. Employers not registered with SARS will continue to receive the UF 3 return for payment of UIF contributions from the UI Commissioner each month. However, should these returns not be received in time for submission of a payment, a note with the following information should be submitted timeously together with the payment – • • • • name, postal address and contact telephone number of employer; SARS/ UI Commissioner’s UIF reference number of employer; month to which the payment relates (e.g. April 2002); and amount of the payment enclosed.

An EMP 201 or UF 3 return not received in time by an employer will not be accepted as an excuse for the late payment of UIF contributions. The required UIF information must be reflected correctly (and in the correct column on the EMP 201 return) on these returns in order to avoid the incorrect allocation of payments and the unnecessary issuing of enquiries and final demands. The following information is required on these returns – • • Part 1 UIF REMUNERATION (Field 3 on EMP 201) This amount represents the total remuneration paid or payable by an employer to all its employees, before the deduction of allowable contributions to pension and retirement annuity funds and, where applicable, medical aid contributions, including remuneration paid or payable to employees earning below the tax threshold and directors remuneration, but excluding remuneration paid or payable to non natural persons (companies, closed corporations, etc.) and excluding remuneration specifically excluded for UIF purposes (see par 8 “UIF EXCLUSIONS”). UIF AMOUNT PAYABLE (Field 6 on EMP 201) This amount is calculate at 2% of UIF REMUNERATION and represents the total contributions payable a specific month. CONTROL TOTAL (Field 7 - only for the EMP 201) This amount should be filled in and represents the total amount of the liability for PAYE, SDL and UIF in respect of the relevant month and is used for control purposes. NUMBER OF UIF EMPLOYEES (Field 12 on EMP 201) The number of employees (contributors) for whom contributions are included in the UIF AMOUNT PAYABLE is required under this item. SIGNATURE, CAPACITY & DATE Please ensure that the completed return is signed, dated and the capacity of the person who signed the return is clearly stated in the relevant block.

•

•

•

•

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• •

Part 2 AMOUNT OF PAYMENT – The amount of the UIF contribution payment for the relevant month should be filled in next to the UIF reference number only if payment is submitted together with the return. It will ensure that the payment is correctly allocated to the UIF account.

9.3

BANK PAYMENTS to SARS - It is imperative that the correct reference information is provided in the case of bank or electronic payments to ensure that the payments can be identified and correctly allocated upon receipt by SARS. To ensure that the payments are processed correctly, the following information is essential – • the correct 19 digit bank payment reference number (reference number starting with a “U”, tax type and period) and • the correct SARS bank account number, both of which are reflected on the EMP 201 return. Please complete separate deposit slips or create separate electronic transactions for bank or electronic payments as different account numbers and codes are used for PAYE, SDL and UIF contributions. A completed EMP 201 return should still be submitted to the local SARS branch office regardless of whether payment has been made at a branch of First National Bank or by electronic bank transfer. Employers must ensure that UIF contributions are deposited into the correct account of SARS with First National Bank (account no. 62032045678, branch code 253-145). The UI Commissioner also has an account at First National Bank into which contributions could be deposited by employers who are NOT liable for the payment of contributions to SARS. Payments deposited into the incorrect account can only be corrected by way of a refund from SARS or the UI Commissioner (whichever is applicable). This might result into late payments on which interest and penalties will be levied.

10. REFUNDS
10.1 Refund by employer - If it becomes known to the employer that the payment made by the employer in respect of the unemployment insurance contribution was not due or payable, or was in excess of the amount due or payable, the employer MUST refund such amount or excess amount to the employee, despite the amount not having been refunded to the employer by SARS or the UIF Commissioner. 10.2 Refund by SARS or the UI Commissioner - If the amount of any contribution, interest or penalty paid by the employer was not due or payable, or is in excess of the amount due or payable, such amount, or such excess amount, becomes refundable to that employer by SARS or the UI Commissioner (where applicable). Any request from an employer for a refund must be in writing and should contain the reason for the request together with other applicable information i.e. reference number, month for which overpayment was made and the amount of overpayment. Alternatively, an overpayment can be utilised to reduce the payment of current contributions provided that the relevant branch office has confirmed that the overpayment has been allocated to the current month.

11. INTEREST AND PENALTIES
11.1 Interest at the prescribed rate as well as a penalty equal to 10% of the relevant contributions will be imposed on late payments or outstanding amounts. The prescribed rate, at which interest is currently Unemployment Insurance Contributions – Guideline to Employers 2002-04-12

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charged, is 13% per annum. Interest is calculated on a daily basis in respect of the period during which the amount remains unpaid. 11.2 An additional penalty not exceeding an amount equal to double the relevant contributions or the amount of the contributions not refundable, may be imposed on an employer, where the employer fails to perform any duty or does, or omits to do, anything with intent to — • evade the payment of any amount of contributions payable by the employer in respect of any employee; or • cause a refund to the employer of any amount of contributions, interest and penalties which is not refundable to the employer.

12. DUTY OF EMPLOYERS TO PROVIDE PARTICULARS OF EMPLOYEES
12.1 Every employer must, as soon as it commences activities as an employer, provide such information regarding its employees to the UI Commissioner as prescribed in the Unemployment Insurance Act (see EMP 10 Guidelines for Employees Tax and Skills Development Levy - Volume 43 which is available on the SARS website – www.sars.gov.za). More information regarding the declaration of employee information can be obtained from the UIF website – www.uif.gov.za. The UI 18 form must be used for this purpose if the employee information cannot be submitted in an acceptable electronic format. 12.2 The employer must, before the seventh day of each month, submit detail of any changes to the information contemplated in paragraph 12.1 above, to the UI Commissioner, including details relating to – • the termination of employment of any employee and • the appointment of any employee by the employer. The UI 19 form must be used for this purpose if the changes cannot be submitted in an acceptable electronic format. 12.3 These declarations must be submitted to the UI Commissioner and NOT to SARS, irrespective of where an employer is registered for payment of UIF contributions. 12.4 The details of ALL employees of an employer are required irrespective of whether such employees are contributors or not. 12.5 Any enquiries regarding the submission of employee information can be directed to the UIF helpdesk at the UI Commissioner’s office, telephone number (012) 337 1680.

13. OTHER IMPORTANT DEFINITIONS
Domestic Worker an employee who performs domestic work in the home of his/her employer, and includes a– • gardener • person employed by a household as a driver of a motor vehicle; and • person who takes care of any person in that home but does not include a farm worker. Employee 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. as defined in paragraph 1 of the Fourth Schedule to the Income Tax Act, and includes a “representative employer” as defined in that Schedule.

Employer

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This means any person, who pays or is liable to pay to any person any amount by way of remuneration, and any person under the provision of any law or out of public funds or out of funds voted by Parliament or a provincial council including any person acting in a fiduciary capacity as a trustee in an insolvent estate and an executor or an administrator of a benefit fund, but excluding any person not acting as a principal. Seasonal worker any person who is employed by an employer for an aggregate period of at least three months over a 12 month period with the same employer and whose work is interrupted by reasons of a seasonal variation in the availability of work.

14. APPLICATION OF INCOME TAX ACT
The following provisions of the Income Tax Act also apply (with the changes required by the context) to any UIF contributions paid or payable in term of the UI Contributions Act – • • • • • • • • The administration thereof as regards the exercise of powers, the performance of duties and the preservation of secrecy; Returns, the production of information, documents or things, enquiries, searches and seizures and evidence on oath to obtain full information in respect of the calculation of the contributions due and payable; Assessments, objections and appeals; The payment, recovery or refund of any contribution, interest and penalty; Representative taxpayers and representative employers; Any transactions, operations or schemes to avoid or reduce any contribution; Reporting of unprofessional conduct; and The jurisdiction of the courts

15. OFFENCES
15.1 Any person commits an offence if that person – • Fails, in terms of the UI Contributions Act, to • pay any amount due on the day determined for the payment thereof, • submit any return or other document or thing required to be submitted or delivered, • disclose any information required, • reply to or answer truly and fully any question, • attend and give evidence at an enquiry, or hinders or obstruct any person in carrying out his or her functions in terms of the UI Contributions Act.

•

15.2 Any person convicted of an offence in terms of the UI Contributions Act is liable on conviction to a fine or imprisonment for a period not exceeding 12 months, or both a fine or such imprisonment.

16. FORMS
Copies of the following forms are attached for easy reference – • Application for Registration (EMP 101) – see annexure 1 and • Monthly Return (EMP 201) – see annexure 2.

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17. TABLES
17.1

CALCULATION OF REMUNERATION FOR PAYE, SDL AND UIF PURPOSES
PAYE REMUNERATION SDL REMUNERATION “PAYE REMUNERATION” UIF REMUNERATION TOTAL REMUNERATION (see par. 7 “Remuneration” above) Less (-) UIF EXCLUSIONS (see par 8 “UIF Exclusions” above and list in table 17.3 below) Equals (=) “UIF REMUNERATION” (field no.3 on EMP 201 return)

TOTAL REMUNERATION (see par. 7 “Remuneration” above) Less (-) ALLOWABLE PAYE DEDUCTIONS (see list in table 17.3 below)

Less (-) SDL EXCLUSIONS (see list in table 17.3 below)

Equals (=) “PAYE REMUNERATION” (field no.1 on EMP 201 return)

Equals (=) “LEVIABLE AMOUNT” (field no.2 on EMP 201 return)

17.2

CALCULATION OF AMOUNTS PAYABLE
PAYE AMOUNT PAYABLE SDL AMOUNT PAYABLE “LEVIABLE AMOUNT” (field no.2 on EMP 201 return) Multiply (x) Total Employees’ Tax deducted/withheld from “PAYE REMUNERATION” PERCENTAGE (currently 1%) Equals (=) UIF AMOUNT PAYABLE “UIF REMUNERATION” (field no.3 on EMP 201 return) Multiply (x) PERCENTAGE (currently 2%) Equals (=) “UIF AMOUNT PAYABLE” (field no.6 on EMP 201 return)

“PAYE REMUNERATION” (field no.1 on EMP 201 return)

“PAYE AMOUNT PAYABLE” (field no.4 on EMP 201 return)

“SDL AMOUNT PAYABLE” (field no.5 on EMP 201 return)

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17.3

ALLOWABLE PAYE DEDUCTIONS, SDL AND UIF EXCLUSIONS
SDL EXCLUSIONS • AMOUNT PAID OR PAYABLE BY WAY/IN RESPECT OF – • PENSION, • SUPERANNUIATION ALLOWANCE, • RETIRING ALLOWANCE • ANNUITY, • VOLUNTARY AWARD i.r.o loss of office (e.g. retrenchment package), • LUMP SUM PAYMENT from pension, provident or retirement funds. AMOUNT PAID OR PAYABLE TO LABOUR BROKERS WHO ARE IN POSESSION OF A VALID CERTIFICATE OF EXEMPTION ISSUED BY SARS. • UIF EXCLUSIONS AMOUNT PAID OR PAYABLE BY WAY/IN RESPECT OF – • COMMISSION, • PENSION, • SUPERANNUIATION ALLOWANCE, • RETIRING ALLOWANCE • ANNUITY, • RESTRAINT OF TRADE, • VOLUNTARY AWARD i.r.o loss of office (e.g. retrenchment package), • LUMP SUM PAYMENT from pension, provident or retirement funds. REMUNERATION PAID OR PAYABLE TO EMPLOYEES EMPLOYED FOR LESS THAN 24 HOURS A MONTH. REMUNERATION PAID OR PAYABLE TO A LEARNER UNDER A REGISTERED LEARNERSHIP (Skills Development Act, 1998). FOREIGN EMPLOYEES WHO MUST LEAVE THE RSA UPON TERMINATION OF CONTRACT. REMUNERATION PAID OR PAYABLE TO DOMESTIC AND SEASONAL WORKERS REMUNERATION EXCEEDING R 8099 PER MONTH

ALLOWABLE PAYE DECUCTIONS • PENSION FUND CONTRIBUTIONS • Current contributions limited per annum to the greater of – • R 1750 or • 7.5% of the remuneration received from retirement funding employment. • Arrear contributions is limited to R 1 800. ANNUITY FUND CONTRIBUTIONS • Current contributions limited per annum to the greater of – • R 1750 or • R 3 500 less allowable pension fund contributions or • 15% of income derived from non-retirement funding employment. • Arrear contributions is limited to R 1 800. MEDICAL AID CONTRIBUTIONS (Only if employee is 65 years and older)

•

•

•

•

• REMUNERATION PAID OR PAYABLE TO A LEARNER UNDER A REGISTERED LEARNERSHIP (Skills Development Act, 1998). •

•

•

•

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Description: UNEMPLOYMENT INSURANCE FUND (UIF)