Calculating UIF on Bonuses

[snowy170]

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.

[Dave A]

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.

[Tato]

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.

[Tato]

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]

[Dave A]

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.

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.