Lockdown Recap Blog #5

Update 27 May: the UIF has announced a delay in the opening of COVID-19 TERS applications for May due to a break in the communications link between the UIF’s office and the State Informations and Technology Agency (SITA). Read the media statement here

Update 25 May: As mentioned in previous blogs, such as the Employment Tax Validation blog, SDL contributions for the months of May to August 2020 have been set to zero in line with the legislation. This will be reflected on your EMP201s and you do not need to do anything on your end.

After having a week off last Friday, we’re back to business with the consolidatory blog for the past fortnight! Without further ado, let’s get straight into what’s been covered this week.

This Week’s Blogs

As per every week, here’s the list and summary of this week’s blogs, just in case you missed them!

Annual Employer Reconciliation Period Deadline blog contents:

• Extended deadline remains 31 May
• Information on individual tax returns

Repo Rate Change blog contents:

• New rate of interest cut by 50 basis points

TERS for Foreign Employees and OID Comp Return of Earnings blog contents:

• Steps to follow to receive TERS Benefits for foreign employees
• OID Comp Return of Earnings, delayed deadline
• Relief measures to support employers with respect to their Return of Earnings

Submitted Files for UIF Declaration Now Available blog contents:

• UI-19 declarations submitted through SimplePay can now be downloaded for personal records
• Information how to open the file in spreadsheet format

UIF Submissions Update: 18/05/2020 blog contents:

• Update on the turnaround times for UIF submissions, as well as the amount of backdating
• Link to original update blog on 14 May.

COVID-19 TERS Update blog contents:

• Department of Labour’s post application support document for employers who applied for TERS benefits and are looking for further guidance
• A note for employers who are wanting to apply for TERS in May

New SARS Codes and System Item for Disaster Relief Funds blog contents:

• Tax Treatment of disaster relief payments
• New “COVID-19 Disaster Relief” system item on SimplePay

Employment Tax Validation Process blog contents:

• Summary of the tax validation process
• Process to follow for over and under deductions
• News on SDL payment holiday
• News on the expansion of parental leave benefits

Take-Home Highlights

Employer Annual Reconciliation Period

As mentioned in our blog published earlier today, the deadline for IRP5/IT3(a)s is 31 May, in a little over a week’s time.

We have made all the necessary changes to our system, so all that is left to do is to ensure you get your returns submitted on time!

COVID-19 TERS

It has come to the point where no blog really feels complete without a nod to COVID-19 TERS.

The situation as it stands with TERS is that applications for May have still not opened. We are periodically checking the UIF website for a change (https://uifecc.labour.gov.za/covid19/), but so far to no avail.

Hopefully the application downtime is being used wisely, whereafter a streamlined process will emerge for the remainder of the scheme.

In the meantime we are all at the mercy of Government timelines and process; unfortunately we have no insight into or influence on these, but will do our best to keep you informed as and when we know more.

We hope that this information proves useful to you. If you have any queries on how the above relates to payroll and the SimplePay system, please feel free to get in touch with our customer support team at support@simplepay.co.za.

Keep well. Stay home. Stay safe.

Team SimplePay