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Thread: Is there a minimum contribution for UIF?

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    Is there a minimum contribution for UIF?

    Hi,

    Is there a minimum contribution for UIF? Say there is an employee that did not receive a salary for say January 2012, but received a salary for February 2012 - will there be an UIF contribution for January 2012 (as 2% of Rnil is Rnil?)...

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    Site Caretaker Dave A's Avatar
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    There is no contribution payable if no salary was paid.

    My caution would be don't try just paying every second month (or quarterly etc.) to take advantage of the upper threshold. Ultimately the upper limit is legislated as an annual figure, but every bit of payroll tech, including uFiling seems to execute by applying a monthly limit.

    I actually had a problem in the 2011 financial year recon that arose from this little quirk as I have some staff on the R12k a month mark. The month when we paid annual bonuses invoked the monthly limit and all seemed fine. But it seems there is an annual recon process in there somewhere and we picked up an additional charge for UIF on "final assessment" (or words to that effect).
    The trouble with opportunity is it normally comes dressed up as work.

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    Gold Member IMHO's Avatar
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    My take on the question is - 'No work, no pay, no UIF' If a staff member worked for only 16 hours in the month, you pay 2% of the wage for that 16 hours. Even if he was supposed to work 195 hours.

    But obviously there is more to it, as per Dave's answer that is going sort of over my head, hehe.

    I always wondered why they want to know how many staff you have in a month on the payroll. What does that tell them? To do with minimum wage? Can not be, as they will not know the number of hours the staff member have to work in the month or how many he did work.

    So I will be watching this thread and learn!

    PS. I missed the first sentence of Dave's answer!
    ~Expenses will eat you alive! - My first Boss~

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    Quote Originally Posted by IMHO View Post
    My take on the question is - 'No work, no pay, no UIF' If a staff member worked for only 16 hours in the month, you pay 2% of the wage for that 16 hours. Even if he was supposed to work 195 hours.
    UIF is only payable for staff that worked more than 24 hours for that specific month... So I guess this is also one of the reasons why a staff member might be contributing to UIF haphazardly (like the some months salary paid, some months not example).

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