Xero Accounting Gold Champion Partner
We hope you enjoy reading the blog post.
If you want our team to do your accounting or tax for you click here.

Your Payroll System Needs To Be Updated With New UIF Limits

new uif deductionsUnemployment Insurance Fund Contributions (UIF) is payable based on the Gross Basic Salary of each employee, in one of two ways:

  1. If your company  is registered as an Employer with the South African Revenue Service (SARS) and deducts Employees Tax (PAYE) from your employee salaries, you are required to pay over the UIF component over to SARS on or before the 7th of each month as part of the EMP201 submission, or
  2. If you are not registered as an employer with SARS, you are required to pay over the UIF deductions directly to the Department of Labor.

The employee contributes 1% towards UIF and the employer contributes another 1% on behalf of the employee, resulting in a total UIF contribution of 2% being payable. This 2% is however not payable on the total gross salaries, but calculated based on a capped amount.

Based on the notice published in the Government Gazette no. 35715, dated 26 September 2012, the UIF earning limit increased from R149,736 to R178,464 p/annum and from R12,478 to R14,872 p/month.

This means that for an individual earning a gross salary in excess of R14,872 p/month, the UIF contribution will be capped at R148.72 (R14,872 x 1%).

This change will take effect from 1 October 2012.

The result is that for those of you that employed certain employees with a fixed net salary, their gross salaries will have to be adjusted upwards to provide for the higher UIF deduction.

The following table indicates the adjustments applicable on a salary calculation for an individual employed before 1 October 2012 under the premise that the net salary would amount to a fixed R20,000 p/month, and not based on a gross amount:

  Before 1 October 2012 After 1 October 2012
Gross Salary

24,566.35

24,600.56

1% UIF deduction

(124.78)

(148.72)

PAYE

(4,441.57)

(4,451.84)

Net Salary

20,000.00

20,000.00

     
Increase in Gross Salary  

R34.21

 

Not adjusting for the above mentioned changes, will result in the IRP5 reconciliation not reconciling and might result in penalties and interest levied by SARS.

An important factor to communicate to all other employees that are employed on a fixed Gross Salary, is that their net salaries will be less with R23.94 from end of October 2012, as a result of this UIF increase.

Please ensure that your payroll calculation for this contribution is updated accordingly.

Contact Calypso Accounting today if you need any assistance with the implementation or maintenance of a cost effective Payroll solution.

Facebook
Twitter
LinkedIn
WhatsApp
Ready to take your financial success to new heights?
How would it feel to have peace of mind knowing that your finances are in the hands of experienced professionals who are passionate about helping you maximise your financial potential?
Ready to experience the difference? Contact us today for a complimentary consultation and discover how our tailored accounting solutions can empower your financial future.
What our clients say?
Thrive CFO
5.0
Based on 10 reviews
powered by Google
Martin Mulder
Martin Mulder
12:36 17 Aug 23
I have only the greatest appreciation for this company. I was going through a difficult time and they were understanding and accommodating. My tax was handled speedily and efficiently.
Kevin Rademeyer
Kevin Rademeyer
07:20 17 Aug 23
We have been using Melissa, Marche and the rest of the crew at ThriveCFO for over 10 years, in order to compile our annual audit for Law Society. They have been exceptional, efficient and pro-active every year. I would not take the business anywhere else.
Jan de Wit
Jan de Wit
13:13 13 Jun 23
Our firm has been making use of the services of Thrive CFO for more than 10 years. Thrive CFO has amazing staff that is not only extremely helpful, but also very capable. We are extremely happy with their services and will continue to support them. They make accounting easy. Thanks Melissa, Marche and the rest of the Team - You Rock!!
LM Keyser
LM Keyser
07:13 13 Jun 23
The ThriveCFO team has been our trusted accounting and tax partner since 2010. They are competent, honest, approachable, quick to respond, and they really do care. I highly recommend them.
Andre Claassen
Andre Claassen
10:24 08 Jun 23
Prompt, professional and personal service!!
Palabadi Ramaphoko
Palabadi Ramaphoko
19:38 15 May 23
I'm impressed with the work you do. You are extremely professional and polite. I hope we will grow big together!
Deidre Oosthuysen
Deidre Oosthuysen
12:20 04 May 23
I feel as though Thrive CFO is a natural part of our business. 100% professional. Very knowledgeable. Incredibly organised. And with a work ethic and proactive communication practices, I know I am in the very best hands possible.
Sean Fabian
Sean Fabian
07:45 04 May 23
As someone who has had the pleasure of working with Thrive CFO, I can confidently say that they are an exceptional company with an unwavering dedication to their clients. From beginning to end, their commitment to providing top-tier financial services is evident in every interaction.One of the things that sets Thrive CFO apart is their focus on education. They take the time to educate their clients on financial best practices and help them understand the reasoning behind their recommendations. This approach ensures that clients are empowered to make informed decisions about their finances.Thrive CFO also uses the latest technology to streamline their services and make the financial management process as efficient as possible. They utilize cloud-based software to provide real-time financial data and make it easy for clients to access their financial information at any time.Overall, Thrive CFO is an exceptional company that is dedicated to providing personalised financial solutions that help their clients succeed. If you're looking for a financial firm that truly cares about your success, I highly recommend Thrive CFO.
Michael Dawson
Michael Dawson
15:48 02 May 23
Great experience with the team! Always willing to assist with questions and able to help guide my small business to ensure that I am compliant.
Riaan Schlebusch ITMC
Riaan Schlebusch ITMC
12:15 21 Apr 23
Professional, smart and friendly people.You only deal with the best of the best, and they know how to answer your questions, and they ensure that they understand you, and make they make sure to take the time to know your business.
See All Reviews
js_loader

Ready To Take Your Financial Success To New Heights?

Scroll to Top