Labour on Unemployment Insurance Fund contributions for above tax
threshold employers

Pay contributions through South African Revenue Service (SARS)
� Unemployment Insurance Fund (UIF) urges above-tax employers

8 March 2007

The Unemployment Insurance Fund (UIF) wants to remind all employers who are
above the tax threshold to always ensure that they make their UIF contributions
through SARS, and not directly at the UIF.

Employers who are employing workers for more than 24 hours a month are
required by the Unemployment Insurance Act of 2001 to register those workers
and also to make regular 2% contributions. UIF Spokesperson, Kgomotso Sebetso,
explains that SARS, through the Unemployment Insurance Contributions Act of
2002, collects money from employers who are registered for tax purposes on
behalf of the UIF.

"Employers need to be informed that SARS will be within its rights to take
action against employers who are not complying with the provisions of the
Contributions Act in terms of UIF payments. We want to make an appeal to
employers above the tax threshold to remember that they must make their
contributions to SARS and not to the UIF," Sebetso added.

He said only those employers who were below the tax threshold must make
their contributions directly to the Fund. The tax threshold has currently been
placed at R43 000 per annum. "The fund wants to emphasise the fact that all
those employers who are already registered with SARS must continue to pay their
contributions to SARS," he said.

The UIF currently has more than 518 000 commercial employers on its
database. During the month of January alone the UIF registered close to 5 000
new employers. "This is a clear demonstration that the number of employers
registered with the UIF is on the increase hence the need to send out this
important message to employers," Sebetso said.

"All employers must always remember that irrespective of whether they are
registered with SARS, all employees' information (declarations) must be
submitted to the UIF directly," he said

Sebetso urged employers to always fax their declarations at the following
dedicated fax lines 086 71 33 000 or (012) 337 1943/1944/1580/1581/1582.

"In August of 2006, we introduced a new easy online payment and declarations
channel for domestic employers and employers not registered with SARS. The
system, which already has more than 30 000 users, can be found at: http://www.ufiling.gov.za," he said

He concluded by urging employers to call the UIF Call Centre at (012) 337
1680 for more information.

Enquiries:
Kgomotso Sebetso
Cell: 073 269 9870

Issued by: Department of Labour
8 March 2007

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