How to Pay UIF Arrears UIF ARREARS FOR DOMESTIC WORKERS! What to do when you as an employer did not make UIF contributions and wants to settle the UIF arrears and paying from now on every month?
If you did not submit and pay over UIF since 1 April 2003, there are penalties (10% of the UIF amount due) and interest (which is calculated daily only by the finance department of the UIF, as there are fluctuations)
What Are UIF Arrears?
UIF arrears are unpaid or overdue contributions owed to the Unemployment Insurance Fund. Employers are legally required to submit monthly UIF contributions for employees earning remuneration.
When contributions are not paid on time, the unpaid amount becomes arrears and may attract:
- Penalties
- Interest charges
- Compliance notices
- Legal action
How to pay UIF arrears
- Register your employees by submitting the company details to UIF, whether online or offline.
- UIF reference number will be shared with the employer after registration.
- Submit full details of the period UIF was not paid
- Include your employee’s data list and make the necessary transaction
- Please note that UIF arrears payments attract penalty charges of 10%
- The department of labour will look into your paperwork and apply all necessary fines
The process is as follows: (PAYROLL 4 SA CAN ASSIST YOU HEREIN)
- Register yourself and your employee for UIF
- Get a UIF reference number
- Submit the information to the UIF for the periods you did not submit or pay UIF (Only one form per year is needed for backlog periods, thereafter you need to submit a form every month)
- Only after you have submitted the salary information for the backlog periods, the finance department of the UIF can calculate what the amount for interest will be.
- In the meanwhile you can calculate the penalties, here is an example:
Your domestic worker STARTED to work for you from 1 January 2010 (this is the actual start date) and earned R2000 per month from 1 January 2010 until 31 December 2010. Therefore for this period the 2% UIF contribution which you did not pay was R40 per month x 12 months = R480 UIF for the 12 month period. Plus 10% of R480 = R48. This R480+R48 = R528. You owe the UIF R528 for 2010. This amount is the actual UIF (R480) plus the 10% penalty (R48) = R528.
NOW your domestic worker got an increase on 1 January 2011. Her salary for the next 12 months was R2200 per month. The same process as above needs to be done for the next period (until she got another increase)
2011: Monthly salary R2200
UIF contribution per month R44
UIF contribution for period (in this case 12 months) R44 x 12 months = R528
10% penalty: R52.80
UIF + penalty (R528 + R52.80) = R580.80
Thus you owe the UIF R580.80 for the 2011 period
2010: You owe R528
2011: You owe R580.80
2012: You owe R600 (imaginary amount)
Total you owe the UIF: R1708.80
2013: Start to pay each month and submit salary information each month!
If your domestic worker got an increase every 6 months, you need to calculate the 6 month period as above.
- The next step is to start submitting and paying EVERY MONTH as soon as possible.
- As soon as the finance department of the UIF has calculated the penalties and interest, you can make the payment for the amount due.
PAYROLL 4 SA can assist you with
- Registering with the UIF
- Register on U-filing
- Sorting out backlog payments / settling the UIF arrears (This is not done via U-filing but on the manual system)
- Submitting monthly declarations before the 7th of each month for the previous month via U-filing
- Declaring your monthly UIF payment for contributions to the UIF which you have made to the UIF directly
- Providing monthly payslips to your domestic worker
- E-mail : [email protected]
- Call us TODAY to get peace of mind!
FAQs About How to Pay UIF Arrears
What are UIF arrears?
UIF arrears are unpaid or overdue UIF contributions owed by an employer.
Can I pay UIF arrears online?
Yes, many employers can pay online through uFiling or banking EFT services.
Does UIF charge penalties for late payment?
Yes, penalties and interest may apply to overdue contributions.
Can domestic employers pay UIF arrears?
Yes, domestic employers can settle outstanding UIF contributions.
What documents are required to pay UIF arrears?
You may need payroll records, UIF reference numbers, and company details.
How do I check outstanding UIF balances?
You can check through uFiling, SARS eFiling, or labour offices.
Can UIF arrears affect employee claims?
Yes, unpaid contributions may delay or affect employee UIF benefits.
Can I pay UIF arrears in installments?
In some situations, payment arrangements may be allowed.
What happens if I never registered for UIF?
You may still be required to register and pay outstanding contributions.
How long does UIF payment processing take?
Processing may take a few days or several weeks depending on verification.
Can foreign workers be included in UIF?
Yes, many foreign workers legally employed in South Africa qualify for UIF.
What is the UIF contribution percentage?
The total UIF contribution is usually 2% of remuneration.
Can I correct old UIF declarations?
Yes, employers can update or amend incorrect declarations.
Is UIF compulsory for all employees?
Most employees working more than 24 hours monthly must be covered.
Can UIF arrears be disputed?
Yes, employers may dispute incorrect balances or penalties.
Do I need proof of payment?
Yes, always keep payment confirmations and receipts.
Can SARS help with UIF payments?
Some employers may process UIF payments through SARS systems.
How often should UIF be paid?
UIF contributions should be paid monthly.
Can employees report unpaid UIF contributions?
Yes, employees can report non-compliant employers.
What is the deadline for UIF payment?
Payments are generally due before the 7th day of each month.
