Covid19 update – How do I claim UIF?

We’ve been on #lockdown for a week now and the reality of business cash flow implications is now very real. This week also announced the official opening for relief applications with the UIF and other government programs. Time to go to action!

With all the different scenarios that may apply to your employees and how you could potentially claim from the UIF office, we have summarised the different options for you. Happy reading!

UIF CODES

The Unemployment Insurance Fund (UIF) has allowed for existing Employment Status Codes, 10, 14 and 17, to be used when submitting the monthly UIF declaration for employees whose employment has been negatively impacted by the COVID-19 pandemic. The below table outlines when these codes should be used in relation to COVID-19, but does not outline how these codes are used for employees not impacted by COVID-19.

Employment Status Code When to Use It Additional Information
UIF 10 – Illness leave – The employee is diagnosed by a medical practitioner as having COVID-19 and is unable to work.
– On agreement between the employer and employee, the employee has self-isolated to remove themselves from society (for 14 days) and is unable to work from home.
UIF 14 – Business Closed – There is a complete cessation of employment. i.e. even after the 21 day lockdown, the employee will not be returning to work. This will normally be the case when the business ceases to operate.
UIF 17 – Reduced Working Time – The employee is put on reduced hours due to lockdown or business needs.
– The employee has been sent home for the 21-day lockdown period, but is expected to return to work when the lockdown is lifted.
It does not have to be certain that they will return at the point that lockdown ends, this merely has to be the original intention.
It is advisable that if you intend to reopen and it seems likely at the time of ending an employee’s service, employers should go for this over code 14, as it means that employees can rely on the 3 months of UIF payments.

The above codes can be used when ending an employee’s service, permanently or temporarily, due to COVID-19. When ending an employee’s service with codes 10 or 17, please also immediately capture their reinstatement using the date on which you foresee the employee returning to work.

UIF Forms

We have listed the various forms below that need to be completed when applying for employee UIF benefits.

Employees can submit applications themselves via uFiling.

It is worth noting that if the employer has all the relevant documents from the employee, they will be able to file the application on their employee’s behalf, by emailing the completed documents to their provincial UIF processing centre, which are listed in the Easy Aid Guide above.

SimplePay currently generates the consolidated UI 19 for monthly submission to the UIF. We are in the process of creating individual versions of this form, which employers will be able to complete and provide to their employees to claim the UIF benefit. We will make another announcement when this is available.

Temporary Closure / Reduced Hours

 

Document Purpose Information Required Completed by
UI 19 (individual version) An individual version is submitted by the employee when applying for benefits. – Employer details: UIF employer reference number, PAYE ref number, business name & Address, contact info.
– Employee details: Name, ID number, gross remuneration paid (monthly), hours worked, employment start and end date, reason for termination, contributor?
Employer
UI 2.1 Application form for UIF by employee – ID / passport number
– DOB
– Name & address
– Contact number, email
– Occupation
– Signature
Employee
UI 2.7 Remuneration of employee whilst still employed – Name of the employee
– ID number of employee
– Employer’s UIF ref. number
– Date the employee has been on leave since
– Remuneration in date ranges leading up to leave.
– Expected return date
– Actual return date
– Employer signature
Employer
UI 2.8 Application to pay benefits into a bank account – Name of employee
– Identity number
– Signed and dated
– Proof of bank account

This needs to be stamped by the bank. Most straightforward is to get a stamped statement.

Employee’s bank
Letter by employer Confirming company shutdown due to COVID-19

 

 

Diagnosed with or Suspected of Contracting COVID-19

 

Document Purpose Information Required Completed by
Employer confirmation letter Agreement that employee must self-quarantine – Employer name and ID number
– Employee name and UIF reference number
– Date range
– Signature
Employer
Employee declaration letter Agreement that employee must self -quarantine – Employer name and ID number
– Employee name and UIF reference number
– Date range
– Signature
Employee
UI 2.2 Application for illness benefit – Employee full name, ID, DOB, gender
– Address, contact number & email
– Tick box and signature
Employee, UIF official
UI 2.7 Remuneration of employee whilst still employed – Name of the employee
– ID number of employee
– Employer’s UIF ref. number
– Date the employee has been on leave since
– Remuneration in date ranges leading up to leave.
– Expected return date
– Actual return date
– Employer signature
Employer
UI 2.8 Application to pay benefits into a bank account – Name of employee
– Identity number
– Signed and dated
– Proof of bank account

This needs to be stamped by the bank. Most straightforward is to get a stamped statement.

Employee’s bank

Procedure to Claim UIF Benefits

For more information on the steps required to claim UIF benefits, refer to the following sections in our COVID-19 Lockdown – 27 March to 16 April 2020 blog:

  • Procedure for Healthy Employees Impacted by Reduced Hours or Temporary Closure to Claim UIF benefits
  • Procedure for Employees who are Suspected or Diagnosed with COVID-19 to Claim UIF benefits
Want Exclusive Accounting Tips?
Join our Newsletter
Join over 5,000 SME's who get tips on improving their business, delivered directly to their inbox.
Give it a try, you can unsubscribe anytime.

Leave a Reply

Your email address will not be published. Required fields are marked *