Every day is bringing us new information and processes to follow in terms of applying for assistance for companies who are experience business distress and how we can assist employees when we are unable to pay them full salaries, or indeed any salary.
Below is some of the new information that we have in this process.
Having had a long conversation with the call centre this morning we have established the following:
At this stage we are unable to determine what payment the employee will receive
Please don’t let employees use the online system as this will utilise their UIF credits and payment may not be received any time soon.
A draft document has been posted on the SARS Website with proposed assistance to employers to assist them during this time. There are basically two proposals:
Responding to calls from Employers wanting relief from the cost of paying over Retirement funding during this period, the FSCA has responded to say that while the risk benefits need to be paid (life insurance, disability insurance, funeral cover etc), with a rule change, which they are going expedite as quickly as possible, companies will not need to pay over the investment portion of the Retirement Funding during this period. The official communique from the FSCA is posted below. Please contact your Retirement Fund Administrator for assistance.
We will inform you when the regulations have been passed into law.