There
were some issues that we at PeopleWorks24 discussed in detail with the UIF and we are glad to report that
we at PeopleWorks24 have permission to pass on the resolution of one of the issues to our clients.
The issue was that of paying the UIF every month and the filling in of the UI-7 form. According to
procedures the employers must every month receive an UI-7 form, from the UIF, complete the form and send
it in with their payment. This procedure was designed to be a manual process. Nowadays with Internet
banking payments can be made electronically but the form must still be send or faxed to the Commissioner
of the Unemployment Insurance Fund. This is a monthly administrative hassle. The current positions
of the UIF was that only if written permission has been granted to an employer that employer were
allowed to pay for the year in advance.
Our argument at PeopleWorks24 was that the amounts was so
small and the number of payments per year created unnecessarily high transaction cost at the bank for the
employer.
We are glad to announce that PeopleWorks24 has negotiated successfully on your behalf,
so that you do not need written permission to be able to pay for the year in advance.
The procedure
that you have to follow however is as follow:- You still have to complete the UI-7 form, but
change the "RETURN ONLY FOR" dates (in the left top of the form- just under the employers address) to
indicate it is for the year April 2003 - March 2004
- You have to send a cheque with the form and
indicate on the back of the cheque, that the payment is for the year April 2003 - March 2004.
Remember to also indicate your employer's number on the back of the cheque. (If it is done with an
electronic funds transfer, the system will register the payment for that month only). If you follow
these instructions the payment will be captured manually for the year in advance.
Remember that
payments for the year in advance must be the employer's contribution as well as the employee's
contribution, however the employee's contribution may not be deducted in any other way as on a
monthly basis. The payslip indicating the contributions of both parties will stay the same, it is
purely for the convenience of the employer that this arrangement was reached. The employer will pay
for the year in advance (for both parties) but will deduct the employee's contribution on a monthly
basis.
Example: If the employee earns R 800-00 per month
The employer's contribution
is 1% of the R800-00 = R 8-00
The employee's contribution is 1% of the R800-00 = R 8-00
Total = R16-00 per month
If the employer wants to pay this for the year in advance it will be
R16-00 times 12 months = R192-00 for the year April 2003- March 2004.
By: Corrie Niemann
June 2003
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