The bright sparks at SARS have done an audit on our 2012 PAYE recon and found that we under-declared on UIF. The reason for the difference is that the palookas went and simply added the gross remuneration of each employee and calculated 2% on that total. The calculation is totally flawed because the largest salary is for the sole owner of the business, hence excluded from UIF legislation. I still have to see what is the cause of the rest of the difference.
Anyway, can someone tell me which section of the UIF act states that sole proprietors are excluded from UIF legislation, because every resource on the web simply states the fact, but do not refer to a section in the act. SARS disagrees with this rule and we need to prove them wrong.
The UIF act only states the obvious exclusions:
workers working less than 24 hours a month for an employer;
foreigners working on contract;
workers who get a monthly State (old age) pension; or
workers who only earn commission.
nothing about sole proprietors, so I guess it must be some kind of interpretation note or special regulation.