Category: Unemployment Insurance Contributions Act 4 of 2002

Section 11 (UIF) – Payment of amounts collected by Commissioner into National Revenue Fund

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11     Payment of amounts collected by Commissioner into National Revenue Fund


(1)     The contributions, interest and penalties collected by the Commissioner in terms of this Act must, after deduction of any refunds, be paid into the National Revenue Fund.


(2)     The total amount of contributions, interest and penalties paid into the National Revenue Fund in terms of subsection (1) is a direct charge against the National Revenue Fund for the credit of the Unemployment Insurance Fund.


(3)     The Director-General must, within 14 days after receipt of the notice from the Commissioner in terms of section 8(4), authorise the transfer of the amount of the contributions, interest and penalties paid into the National Revenue Fund to the Unemployment Insurance Fund.

Section 12 (UIF) – Interest on late payments

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12    Interest on late payments


(1)     An employer who fails to pay the full amount of any contribution within the period for payment prescribed by this Act, must pay interest on the outstanding amount at the rate contemplated in paragraph (b) of the definition of “prescribed rate” in section 1 of the Income Tax Act, calculated from the day following the last day for payment to the day that payment is received by the Commissioner or Unemployment Insurance Commissioner, as the case may be.


(2)     The Commissioner may prescribe by notice in the Gazette that any interest payable in terms of this section be calculated on the daily balance owing and compounded monthly, and such method of determining interest will apply from such date as the Commissioner may prescribe.

[Section 12 substituted by section 82(1) of Act 30 of 2002 and by section 50 of Act 18 of 2009]

Section 13 (UIF) – Penalties on default

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13     Penalties on default

(1)     If any contribution remains unpaid after the last day for payment thereof as contemplated in section 8(1), 8(1A) or 9(1), the Commissioner must, under Chapter 15 of the Tax Administration Act, impose a penalty of 10 per cent of the unpaid amount but the Commissioner or the Unemployment Insurance Commissioner, as the case may be, may remit the penalty or any portion thereof in accordance with the provisions of Chapter 15 of the Tax Administration Act.

[Subsection (1) substituted by section 271 read with paragraph 163(a) of Schedule 1 of Act 28 of 2011 and by section 25(1) of Act 39 of 2013 effective on 1 March, 2014 and applicable in respect of tax periods commencing on or after that date]


14     . . . . . .

[Section 14 repealed by section 271 read with paragraph 164 of Schedule 1 of Act 28 of 2011]

Section 16 (UIF) – Collection costs

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16     Collection costs


(1)     Subject to subsection (2), the Director-General must, on a monthly basis, defray the costs of collection by the Commissioner from the Unemployment Insurance Fund.


(2)     The total amount of the costs contemplated in subsection (1), excluding the start-up capital which must be defrayed from the budget of the Department of Labour, shall be equal to one and a half per cent of the total amount of the payments collected, or where the actual expense exceeds one and a half per cent of that amount, such actual costs.


17     . . . . . .

[Section 17 repealed by section 271 read with paragraph 166 of Schedule 1 of Act 28 of 2011]

Section 15 (UIF) – Labour inspectors

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15     Labour inspectors

 

(1)     The Commissioner or Unemployment Insurance Commissioner may request a labour inspector to assist in the investigation of any employer required to contribute in terms of section 8 or 9, as the case may be.

 

(2)     An inspector has the same powers afforded to a senior SARS official, a SARS official or SARS under Chapter 5 of the Tax Administration Act.

[Subsection (2) added by section 271 read with paragraph 165 of Schedule 1 of Act 28 of 2011]

Section 9 (UIF) – Payment of contribution to Unemployment Insurance Commissioner and refund

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9       Payment of contribution to Unemployment Insurance Commissioner and refund

 

(1)

 

(a)     For the purpose of this section, “employer” means an employer who-

 

(i)      is not required to register as an employer in terms of paragraph 15 of the Fourth Schedule to the Income Tax Act;

 

(ii)      has not registered voluntarily as an employer in terms of the Fourth Schedule to the Income Tax Act; or

 

(iii)     is not liable for the payment of the skills development levy in terms of the Skills Development Levies Act, 1999 (Act 9 of 1999).

 

(b)     Subject to subsection (5), an employer must, on a monthly basis and in respect of every employee in the employment of that employer, pay to the Unemployment Insurance Commissioner not later than seven days, or such longer period as the Unemployment Insurance Commissioner may determine, after the end of the month in respect of which contributions are payable the amount of—

 

(i)      the employee’s contribution which must be withheld from the remuneration of the employee during that month, as contemplated in section 7(1) or (2); and

 

(ii)      the employer’s contribution as contemplated in section 6(1) (b).

 

(2)     An employer must, together with the payment contemplated in subsection (1), submit a statement in such form as the Unemployment Insurance Commissioner may require and reflecting the amount of the payment and such other particulars as the Minister may prescribe by regulation.

 

(3)     The Unemployment Insurance Commissioner must pay all contributions, interest and penalties collected into the Unemployment Insurance Fund.

 

(4)     If the amount of any contribution, interest or penalty paid by an employer to the Unemployment Insurance Commissioner was not due or payable, or was in excess of the amount due or payable in terms of this Act, that amount or such excess amount must be refunded to that employer by the Unemployment Insurance Commissioner from the Unemployment Insurance Fund—

 

(a)     within five years from the date on which the payment was made in terms of the Act; or

 

(b)     if that amount is claimed by the employer within the period referred to in paragraph (a), but not paid by the Unemployment Insurance Commissioner within that period.

[Subsection (4) substituted by section 25 of Act 33 of 2019]

 

(5)

 

(a)     Where an employer on reasonable grounds believes that the total amount payable in terms of section 6(1) (a) and (b) in respect of all its employees during any financial year will not exceed such amount as the Unemployment Insurance Commissioner may from time to time determine by notice in the Gazette, the employer may elect to make payment of the full amount of the total contributions in respect of that financial year in a single payment within 7 days after the beginning of that financial year.

 

(b)     If an employer discovers that the amount of the payment contemplated in paragraph (a) is less than the amount payable in respect of all its employees in terms of section 6(1) (a) or (b), that employer must as soon as possible but before the end of the financial year in question pay the outstanding amount to the Unemployment Insurance Commissioner.