When you hire an employee, you must understand all of the necessary legal requirements that come with this. Beyond things like covering PAYE and following the conditions of the Employment Act, you also need to register employees for UIF.
If you’re wondering how to register employees for UIF, don’t worry. The process is quick and easy. It can also be done online, where you can manage all of your UIF contributions and requirements. In this quick guide, we’ll cover exactly what UIF is, how it works, and how to register employees for UIF when you hire them.
What is UIF?
The Unemployment Insurance Fund is a fund set up to provide short-term financial relief to workers under certain conditions. This includes workers who have become unemployed, who cannot work due to parental leave, or who cannot work due to illness. Dependents of deceased UIF contributors can also benefit from the fund.
All employers in South Africa need to register their employees with the UIF and make regular contributions to the fund on their behalf. The fund was established by the Unemployment Insurance Act.
Must You Register Employees for UIF?
All employers are required by law to register their employees with the UIF. This applies to any employer who employs someone for over 24 hours per month.
When employers register their employees with UIF, they need to make monthly contributions to the fund. This contribution amount needs to be 2% of the employee’s gross monthly salary, with employers being responsible to pay 1%.
How to Register Employees for UIF
There are a couple of different ways that you can register employees for UIF.
The easiest, and most efficient, way to register employees for UIF is through uFiling. Just like eFiling for income tax returns, uFiling offers an online portal where employers can easily pay and declare UIF contributions. The platform also lets employers view all of their previous contributions and declarations, as well as receive notifications for future UIF declarations.
Employers simply need to complete the relevant online registration forms through the platform. This will require sharing your ID number and address. If you want to know how to register employees for UIF without taking the online approach, there are other options. You could employees for UIF by filling out the forms manually.
UIF registration forms can be found on the Department of Labour’s website. There are options for UIF registration forms for commercial employers (UI-8 and UI-19 forms) and domestic employers (UI-8D and UI-19 forms). Once completed, these forms can be emailed to: webmaster@uif.gov.za.
Employers must fill out the relevant forms for both themselves, as well as for their employees. This process will involve adding an employer reference number. If an employer does not have this yurt, they can leave the section blank. A new employer reference number will be created with the application.
It’s also possible to register for the UIF telephonically. If you want to take this approach, employers need to phone the UIF at (012) 337 1680 and follow the instructions of the UIF official. It’s important to have all employer and employee details (like ID numbers and addresses) available when starting this call.
UIF Benefits
Knowing how to register employees for UIF is an important part of running a business. Not only is registering for the UIF a legal requirement, but the UIF also offers various benefits.
The UIF is all about offering protection to employees if the employee cannot work. This could be due to the employee being terminated or due to an unforeseen event – like an injury that prevents work. Paying UIF contributions helps to protect your employees, and adds a layer of security in case of emergencies. This is important for a more stable relationship with employees. You also need to show employees their UIF contributions each month on their payslips.
As soon as you hire a new employee and add them to your payroll, you’ll need to get them registered with the UIF. This is necessary for being able to make monthly UIF contributions, which will be displayed on the employee’s payslip. The process is very easy, and it can all be done online. So, if you’re making a new hire, be sure to follow the steps above and register with the UIF straight away to avoid any potential legal issues.
