Covid-19

Covid-19 Information

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Breaking News (2020/06/24):

TERS Application open for June 2020

The website has been opened for June applications for TERS Refunds.  This despite the fact that some April and May applications have not been approved.  In the latest information from the Department, we have been assured that the backlog is being attended to and that the systems reruns every 3 to 4 days.  We have seen movement on applications this week and the computer system does seem to be working more smoothly.

We are waiting for final information with regard to the closing dates for applications, but at this time new applications for TERS for April and May are still being accepted.  The sooner you apply, the sooner payment will be made.

TEMPORARY EMPLOYEE RELIEF FUND

Having had a long conversation with the call centre this morning we have established the following:

  1. We cannot force employees to take annual leave during the lockdown, it should be treated as special leave, but the special leave does not need to be paid.  The implication is that if staff would prefer to use their annual leave they can.  We have changed our letter format to suit.
  2. The Memorandum of Agreement was meant for Bargaining Councils and not for individual employers applying.  This means that:
    • You do not need to open a special banking account.
    • You do not need to do a proforma invoice attracting VAT.
    • The letter of authority is still necessary and the UIF reserves the right to do an audit, but this MOA does not need to be signed, although there might be another document later.
  3. The application of TERS is meant for employees who will be receiving no funds during the lockdown period and perhaps for some time after this.  There is a separate process for employees whose income is affected by a reduction in their working hours.  This definition does not include those employees who are still working a full day, but may, due to financial constraints, have had their salary cut by a percentage.
  4. Employees whose time has been reduced will receive a benefit even if their salary after reduced hours is more than the maximum benefit from UIF of R6,730.56 (I asked this question several times, so really hope the information is correct).
  5. To claim for UIF benefits for reduced time we are now able to use the same process as TERS, but to include in the leave payment column of the spreadsheet, the value of the payment made to the staff member.

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.

TAX CONCESSIONS

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:

  1. ETI Benefit:  the proposal is to extend the Employment Tax Incentive to cover all staff to the age of 65 whose income is below R6500-00 by allowing employers to deduct R750-00 from their PAYE and to increase the benefit for employees with less than 24 months service and who are below the age of 29 by R500 to R1000.  This is proposed to be effective from 1 April 2020.
  2. Allowing small and medium-sized companies (turnover below R100 million) to defer the payment of 35 per cent of their PAYE liability, without SARS imposing administrative penalties and interest for the late payment thereof.
  3. The deferred PAYE liability must be paid to SARS in equal instalments over the six-month period commencing on 1 August 2020, i.e. the first payment must be made on 7 September 2020.
  4. Deferring a portion of Small and Medium-sized companies first and second provisional tax liability as follows:
    • The first payment due (from 1 April 2020 to 30 September 2020) will be based on 15 per cent of the estimated total tax liability
    • The second payment due (from 1 April 2929 to 31 March 2020) will be based on 65% of the total tax liability. 
    • The full amount owed will be due by the effective date of the year of assessment (when the third provisional tax payment may be due.)
  5. All companies are given a four-month holiday for the payment of the Skills Development Levy.  This will be effective from 1 May 2020 and end on 31 August 2020. 

RETIREMENT FUNDING RELIEF

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.

Important Documents and Links

Permits

Please note all security guards and staff who are required to continue to work during lockdown must carry the permit in the link below

Categories of Approved Essential Services

Permit to Perform Essential Service

UIF ters submission Forms

UIF

The Government

Debt Relief Finance Scheme

Employer Relief

The Department of Labour

CCMA