Overview of the UIF Submission
The return must be made to the UIF Commissioner monthly by the 7th of each month, and may be made:
- Electronically via e-mail
- Manual capture on the UIF web site
The file name used for the electronic return, must be made up of the employer's UIF reference number and a 3 digit run number.
The run number is similar in concept to the generation number used by SARS, but simpler. The first run will be number 001, the second run will be number 002, and so on.
However, if an incorrect return was submitted, then the employer can correct whatever was incorrect, and override the incorrect return by resubmitting the return with the same run number as the original incorrect return.
Note that if two separate returns are made every month from two different payrolls or from two separate computers, then the two returns must not have the same run number, otherwise the one will always override the other.
Employee details required on the monthly return
The contact details of the employer who creates the return, must be included in a 'creator' record in the return.
No records are required for employees who are excluded by the main UIF Act (corporate entities and independent contractors), but the return must include records for all employees whether they were contributors or not, and for all individuals who receive remuneration in South Africa, whether residents or not.
The details required for each employee on the return is as follows:
• South African National ID Number
• Passport or foreign ID number (optional)
• Payroll or Clock card number (optional)
• First names
• Date of birth
• Date employed From
• Date employed To
• Employment status
• Reason code for no contribution
• Gross taxable remuneration (same as IRP5 code 3699)
• Remuneration on which the UIF contribution is based (up to the limit amount)
• Total UIF contribution (employer plus employee)
• Bank branch code, bank account number and bank account type (optional)
Most of these fields are self-explanatory, but some require explanation.
Only 13 digits, RSA bar-coded National ID numbers will be accepted for the identification number field. The records for employees with invalid ID numbers will be logged onto a separate database from the main database.
Employees with valid ID numbers will be able to claim benefits with the minimum of administration delays, whereas the employee without an ID number will have great difficulty in being granted his benefits, if at all.
The employment status field is a misnomer because it provides for values to indicate the reason for non-employment as well as temporary periods of absence while still employed, The full list of values for this field are as follows:
• 01 Active
• 02 Deceased
• 03 Retired
• 04 Dismissed
• 05 Contract expired
• 06 Resigned
• 07 Constructively dismissed
• 08 Employer's insolvency
• 09 Maternity / Adoption leave
• 10 Illness leave
One of the above statuses must be supplied for each employee on the return.
Most will, of course, be Active, but when employment ceases for an employee, one of the other reasons must be given.
Be aware of the situation where the termination of an employee's service is to be disputed by the employee, possibly resulting in a CCMA hearing. The employer cannot commit the reason for dismissal on the electronic download file in advance of the CCMA hearing without prejudicing his own case.
This is relevant for the 'Dismissal' and 'Constructive Dismissal' employment status codes.
The legislation states that no unemployment benefits can be claimed for voluntary resignation and retirement. The reasoning behind this ruling is that an employee will not resign or retire until he has made adequate provision to support himself, thus excluding himself from the necessity of unemployment benefits.
However, the UIF has recently decided to allow unemployment benefits to be paid, depending on the circumstances. A special application can be made, supported by adequate documentation to justify the granting of benefits.
The non-contribution/on reason codes are as follows:
• 01 Temporary employee (less than 24 hours per month)
• 02 Learners in terms of the Skills Development Act
• 03 Employees in the national or provincial spheres of government
• 04 Employees who are to be repatriated at the end of the contract of service
• 05 Employees who earn commission only"
• 06 Employees who earn no remuneration
• 07 Seasonal (and domestic) workers
Reason code 05 would be used in the case where the employee earns only commission, which is excluded from the calculation of contributions.
Reason code 06 would probably be used in the event of the employee being on maternity, adoption or illness leave.
In the case of employees that are excluded from contributing, the remuneration on which the UIF contribution is based must be submitted as zero on the return, even if a non-zero remuneration amount does exist (this applies to codes 01 to 04, and 07).
Take note that the return includes items that are confidential in nature, such as the employee's gross taxable remuneration, and his bank account details.
Additional codes have been prescribed for use in field 8280 - Employment status in response to practical experience.
The full list of codes follows.
5 Contract expired
7 Constructively dismissed
8 Employer's insolvency
9 Maternity/adoption leave
10 Illness leave
12 Transfer to another branch
14 Business closed
Similarly, an additional code has been prescribed for use in field 8290 - the reason for non-contribution. The full list of codes follows.
1 Temporary employees (less than 24 hours per month)
2 Learners in terms of the Skills Development Act
3 Employees in the national and provincial spheres of government
4 Employees who are repatriated at the end of their contract of service
5 Employees who earn commission only
6 No income paid for the payroll period
7 Seasonal workers (presumably not valid after 1 April 2003)
8 Employees who receive a pension payment only
The advantages of having an up to date contributor's database are enormous.
• Only employees recorded on the database will be eligible for benefits, and the information required to determine the benefit will be extracted from the database and calculated automatically.
• Persons claiming benefits after they have been re-employed will be identified, and action can be taken against them.
• Contributors and employers will benefit from more efficient administration
• Accurate statistics will be available to be in a better position to assess the insured risk of unemployment.