How to Pay UIF Arrears

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)

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)

1. Register yourself and your employee for UIF
2. Get a UIF reference number
3. 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)
4. 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.
5. 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.

6. The next step is to start submitting and paying EVERY MONTH as soon as possible.
7. As soon as the finance department of the UIF has calculated the penalties and interest, you can make the payment for the amount due.