Employers must send a note to the UIF, saying that they will pay annually. They have to pay before 7 March every year. Employers are not allowed to deduct their workers’ contributions once a year.
The Unemployment Insurance Act and Unemployment Insurance Contributions Act apply to all employers and workers, but not to –
- workers working less than 24 hours a month for an employer;
- public servants;
- foreigners working on contract;
- workers who get a monthly State (old age) pension; or
- workers who only earn commission.
Domestic employers and their workers are included under the Act since 1 April 2003.
Prescribes how employers should contribute to the UIF Contributions fund.
If employers want to pay their contributions annually, they must use the following steps:
Step 1: Send a letter
If employers want to pay the UIF annually, they must send a note to the UIF. In the note, tell the UIF what your name and employer reference number is, and that you plan to pay annually. Employers can send the note in any of the following ways:
- Mail it to:
- Fax it to (012) 337 1636
- E-mail it to email@example.com
Step 2: Pay the UIF
Employers who pay annually must pay the UIF every year before 7 March. They must work out how much they should pay for a year and pay that amount to the UIF.
Step 3: Deduct contributions from workers
Employers may not deduct their workers’ contributions once a year if they pay annually. Employers must still deduct workers’ contributions every month.
Originally appeared on labour.gov.za on 18-02-2014. The views expressed herein are those of the author and do not necessarily reflect those of estome. estome accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.