UIF is a compulsory insurance scheme that provides short-term financial relief to workers who become unemployed, ill, on maternity/adoption/parental leave, or in cases of reduced work time, as well as benefits to dependents of deceased contributors. SARS collects contributions, while the Department of Employment and Labour administers benefits.

All employers and employees in South Africa must contribute, including domestic workers, seasonal workers, and foreign nationals working legally in the country. Contributions apply if the employee works 24 hours or more per month. Independent contractors are excluded, as they are not considered employees.

The total contribution is 2% of the employee's monthly remuneration: 1% deducted from the employee's salary and 1% paid by the employer.

Employers must register with both SARS and the Department of Employment and Labour within 21 days of becoming liable.

Contributions are declared and paid monthly via the EMP201 form to SARS, due within seven days after the month's end (or the last business day before if on a weekend/public holiday). Use eFiling, EFT, or supported banks with a unique Payment Reference Number (PRN). Late payments incur penalties and interest. A monthly return must also be submitted to the Department of Employment and Labour every month.

Late payments attract interest at the prescribed rate and a 10% penalty on the outstanding amount. Intentional evasion can result in penalties up to double the unpaid contributions, plus potential fines or imprisonment under the Tax Administration Act. Non-submission of returns incurs administrative penalties, and SARS may conduct audits or recover amounts directly.

Claims are submitted to the Department of Employment and Labour (not SARS) via uFiling online or at labour centres. Required documents include UI-2.1 form, ID, proof of unemployment (e.g., UI-2.7 from employer), banking details, and medical certificates if applicable.

Employers submit biannual EMP501 reconciliations to SARS: interim (September-October) and annual (April-May), including UIF details under code 4141 on IRP5/IT3(a) certificates issued to employees. Use eFiling (for <50 employees) or e@syFile Employer. Records must be kept for five years, and discrepancies may lead to audits or adjustments.

Once an employee has been terminated (termination date added to profile) you can refresh the profile, and you will see a button to the UI19 at the bottom of the profile. Some information is already completed if it is on the employee and company profile like the period, business name, UIF reference, PAYE number, telephone, email, fax, address, employee name, ID, dates worked and termination reason. You just need to confirm the owner's full name, ID and the remuneration of the employee.

As many people who work in HR know, the Department of Labour is not always helpful and many times they send employees back to the employer to get a manual UI19 form as well on top of three months' payslips and a confirmation of employment. This is why we added all these ready to be printed with a simple click already completed.

Most of the information is added on the UI19, you just need to confirm the owner's name and ID and the employee's monthly salary and monthly hours worked.