How is remuneration reported on the UI-2.7 form?
The UI-2.7 form generated on SimplePay accurately reflects the remuneration employees receive during the period when their service has been ended on SimplePay but they are still employed by the company, hereinafter referred to as the termination period. The details are as follows:
- The form reports the amount earned per calendar month. It captures and displays the specific period during which an employee earned the monthly amounts.
- Should the monthly salary change during the termination period, the form will detail the updated salary. This will take the form of a new line item recording the period for which the new/changed monthly salary was earned.
- In cases where an employee is paid weekly, bi-weekly, or every two weeks, the income recorded on the form is still calculated on a per-calendar-month basis. The system will determine the monthly income based on pay frequencies that fall within each calendar month.
Example:¶
Suppose an employee’s earnings were as follows during their termination period:
- For the first month, the employee earned a salary of R8 800.
- Following a salary change, for the next two months, the employee then earned R5 500 per month.
This will then be reported on SimplePay’s UI-2.7 form as follows:
More information on the UI-2.7 form, and ending an employee’s service can be found below: