What steps must I take?
- Doesn’t need to register with SARS for Employees’ Tax purposes
- Hasn’t voluntarily registered with SARS as an employer
- Pays or is liable to pay remuneration to an employee must contribute on a monthly basis to the UI Fund.
How much do you need to pay?
- The amount of the contribution due by an employee, must be 1% of the remuneration paid by the employer to the employee.
- The employer must pay a total contribution of 2% (1% contributed by the employee and 1% contributed by the employer) within the prescribed period.
Please note: As from 1 October 2012, the maximum earnings ceiling is R14 872 per month or R178 464 annually. For employees who earn more than this amount, the contribution is calculated using the maximum earnings ceiling amount. Therefore the maximum contribution which can be deducted, for employees who earn more than R14 872 per month, is R148.72 per month.
- Excess amounts shouldn’t be included as remuneration or leviable amount for the purposes of UIF contribution.
- The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer Declaration (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or Employment Tax Incentive (ETI), if applicable.
- A unique Payment Reference Number (PRN) will be pre-populated on the EMP201, and will be used to link the actual payment with the relevant EMP201 payment declaration.