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UIF vs PAYE: What’s the Difference?
Quick Answer UIF vs PAYE: What's the Difference? PAYE is income tax: deducted from the employee’s salary per the SARS tax tables and paid to SARS – the employee’s own tax. UIF is unemployment insurance: 1% deducted from the employee plus 1% paid by the employer, funding benefits if the employee loses their job. Both ride on the monthly EMP201. What this means in plain language On the payslip they sit side by side, which is why they get confused. PAYE varies with salary (0% below the threshold, up to 45%); UIF is a fixed 1% + 1% capped at R177.12 each. They also answer different questions. PAYE settles the…
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How Does UIF Work for Employers in South Africa?
Quick Answer How Does UIF Work for Employers in South Africa? As an employer you register on uFiling, register every employee, deduct 1% UIF from each salary and add 1% yourself (on remuneration up to R17,712/month), declare and pay monthly, and submit a UI-19 whenever an employee leaves. That is the whole monthly cycle. What this means in plain language UIF money protects your employees when they are retrenched, on maternity leave or too ill to work. Your job is only to collect and pay it over – the fund, not you, pays the benefits. Most employers pay UIF to SARS together with PAYE on the monthly EMP201. Employers below…
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