Summary Update on Covid19 TERS and UIF payments

28 March 2022
Accounting
South African Accounting Academy

Do not pay third parties money to claim/apply for Unemployment Insurance Fund (UIF) Benefits on your behalf; departmental officials will not accept or prioritize them.
- This is in response to client reports of agencies soliciting money from them while promising quick claim processing. UIF services are free and can be paid on time if all required documents are submitted to the Department.
Delays in paying claims on time are frequently the result of employers failing to declare their employees or properly updating the information. Employers are urged not to give their employees the UI19 form because by the time it reaches the Department’s desks, a lot of information, such as salary and hours worked, has changed.
The Department encourages employers to use the online uFiling system because the department has dedicated staff across the province to help employers navigate the system.
Media outlets were urged to conduct due diligence and seek investigative journalism before submitting UIF inquiries to the department, noting that the majority of the delays are also due to employers failing to declare or contribute to the fund.
The Department’s officials cannot pay incomplete applications; they rely on employers to send the necessary documentation so that they can finalise the payments.
The Department encourages clients to check their status with the fund; if they discover that they are not registered, they must report this to the nearest Labour Centre for intervention and compliance enforcement.

Click here to access the media statement:

https://www.labour.gov.za/department-of-employment-and-labour-uif-provides-update-on-covid-19-ters-and-normal-benefit-payments-in-limpopo

Relevance to Auditors, Independent Reviewers & Accountants:

The Unemployment Insurance Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
As an auditor and independent reviewer, you need to consider and assess your client’s compliance with UIF in general as well as TERS-related claims.
As an employer, you also need to comply with UIF & TERS requirements in your workplace

Relevance to Your clients:

An entity (company or close corporation) has a duty to comply with the Unemployment Insurance Act, and employers need to be aware of principles that are emphasised and procedures that are clarifies.
An employer has a duty to comply with UIF & TERS requirements in their workplace.

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