Results 1 to 5 of 5

Thread: Calculating UIF on Bonuses

  1. #1
    New Member
    Join Date
    Apr 2013
    Location
    South Africa
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Calculating UIF on Bonuses

    Please help, I've search SARS & Dept. of Labour and can't find any info that specifically relates to the calculation of UIF on annual bonuses.

    My question is, when paying an annual bonus, do I calculate UIF as if the bonus is a separate month, or is it considered to be part of the same month and therefore subject to the monthly limit.

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by snowy170 View Post
    My question is, when paying an annual bonus, do I calculate UIF as if the bonus is a separate month, or is it considered to be part of the same month and therefore subject to the monthly limit.
    It's actually a good question. Let me answer it this way (which should prevent me from leading you astray).

    I use ufiling for filing my monthly UIF returns.
    When I pay my annual bonus, I declare the taxable income (minus UIF applicable exclusions, of course - see this page on UIF for more details) for that month, and a number of staff end up crossing the UIF leviable earnings ceiling (monthly value).
    Ufiling applies the monthly UIF ceiling limit, and does not appear to "annualise" the effect of the bonus either in the month the bonus is declared, or in the periods that follow.

    So effectively, uFiling recognises the bonus (and the fact that it has resulted in leviable income crossing the earnings ceiling) in the month the bonus is declared.
    The trouble with opportunity is it normally comes dressed up as work.

  3. #3
    Junior Member
    Join Date
    Jun 2012
    Location
    Riversdale (Garden Route)
    Posts
    22
    Thanks
    4
    Thanked 2 Times in 1 Post

    Is there an easy way to register bonuses for UIF contributions?

    Hi.

    I do not think, I should start a new thread for the following, or should I?

    Is there any shortcut to "register" bonus payments on the UIF website?
    Currently, I would increase the monthly income of every employee receiving a bonus with that amount, then file the UIF return, and then reduce their salaries again.
    That is so fastidious that I rather pay the bonus out of my own pocket (so that no UIF contribution applies).

    But in the long run, I would like to register the bonus payments as costs for the company.

    Any comment?

    PS: Did they change the UIF website? I cannot see anymore the possibility to view the data for former employees. That was very helpful in double checking past payments/salaries etc.

  4. #4
    Junior Member
    Join Date
    Jun 2012
    Location
    Riversdale (Garden Route)
    Posts
    22
    Thanks
    4
    Thanked 2 Times in 1 Post

    How do I register yearly bonus on ufiling?

    Hi.

    Is there any shortcut to "register" bonus payments on the UIF website?

    Currently, I would increase the monthly income of every employee receiving a bonus with that amount, then file the UIF return, and then reduce their salaries again.
    That is so fastidious that I rather pay the bonus out of my own pocket (so that no UIF contribution applies).

    But in the long run, I would like to register the bonus payments as costs for the company.

    Any comment?

    ONE MORE QUESTION: Did they change the UIF website? I cannot see anymore the possibility to view the data for former employees. That was very helpful in double checking past payments/salaries etc.[/QUOTE]

  5. #5
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Tato View Post
    Currently, I would increase the monthly income of every employee receiving a bonus with that amount, then file the UIF return, and then reduce their salaries again.
    That's the way I do it. Without using a payroll program that does the donkey work for you, I'm not sure there is a less tedious way.

    Quote Originally Posted by Tato View Post
    ONE MORE QUESTION: Did they change the UIF website? I cannot see anymore the possibility to view the data for former employees.
    I hadn't noticed until you mentioned it, but it seems they did.

    The workaround would be to go to the Returns section and view the return for the period in question.
    The trouble with opportunity is it normally comes dressed up as work.

Similar Threads

  1. Calculating annual leave
    By KimH in forum Labour Relations and Legislation Forum
    Replies: 8
    Last Post: 07-May-13, 11:52 AM
  2. Calculating current based on start up or running?
    By BlueArc in forum Electrical Contracting Industry Forum
    Replies: 2
    Last Post: 04-Oct-12, 10:46 AM
  3. [Article] THE PAYMENT OF BONUSES.
    By BBBEE_CompSpec in forum Labour Relations and Legislation Forum
    Replies: 0
    Last Post: 03-Nov-09, 07:23 PM
  4. Director's Bonuses
    By Graeme in forum Entrepreneurship and Business Management Forum
    Replies: 7
    Last Post: 07-May-08, 07:21 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •