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10 amounts to include and exclude when calculating your UIF contribution

by , 14 December 2015
The Unemployment Insurance Fund (UIF) is a fund that provides short-term relief to employees who lose their salary income, or because they are ill and/or on maternity leave.

Having said that, it's worth noting what amounts to include and what amounts to exclude when calculating your UIF contribution.

So, here are 10 things to include and exclude when you calculate your UIF contributions:

What to Include:
 
1. Pensions, superannuation allowances or pension allowances;
 
2. Amounts you pay on relinquishment, termination, loss, repudiation, cancellation or variation of employment.
 
3. Any lump-sum benefits from a pension fund. This is where the rules provide that on retirement a portion of the benefit must be taken into account in the form of an annuity.
 
4. Any disability grant or additional or supplementary allowance under the Social Assistance Act.
 
5. Amounts you pay to an employee to reimburse her for expenditure she actually incurs during the course of her employment.
 
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What to exclude:
 
1. 50% of an allowance your employee receives in his capacity as a holder of a public office;
 
2. 80% of the employee's travel allowance. But  this excludes an allowance you pay for the actual distance travels for business purposes;
 
3. Subsistence allowances that haven't been spent by the end of the end following the month you pay them to the employee for accommodation, meals, and so on, whilst on business for more than one night;
 
4. Gratuities which are unrelated to superannuation or retirement; and
 
5. Fringe benefits she receives in relation to the 7th Schedule of the Income Tax Act (ITA).
 
 
 
*Those were 10 things to include and exclude when calculating your UIF contributions.
 
To find out more amounts to be included and excluded when calculating your UIF contribution, subscribe Practical Tax Loose Leaf Service today. 


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