TERS Phase 2: Non-Sectoral Claim Applications

In our previous blog post covering the COVID-19 TERS initiative, we introduced Phase 2 of the initiative and discussed the requirements for making an application for relief on behalf of an employee for the first period, under Claim Code 1. In today’s blog post, we will cover the process relating to claims under the remaining codes (2, 3 and 4), for which applications officially opened on 13 April 2021.

One of the notable highlights of the State of the Nation address earlier this year was the announcement of the extension of the COVID-19 TERS relief scheme from 16 October 2020 to 15 March 2021. This ‘Phase 2’ of the COVID-19 TERS relief scheme is split into two payment iterations which will focus on claims based on loss of income during two specific periods. 

  • The first period is between 16 October to 31 December 2020; and
  • The second period is between 1 January to 15 March 2021. 

Only claims for the first period are currently being accepted by the UIF and claims relating to the second period will be dealt with at a later date.

New Verification Requirements Added

In order to claim for an employee falling under Claim Code 2, 3 or 4 the TERS online portal will require you to complete a new two step verification process. A detailed explanation of each of these codes can be found here.

The verification process revolves around the requirements set out in the guideline on the submission of COVID-19 related health data from workplaces to the National Institute for Occupational Health (NIOH), which places the legal obligation on all employers to collect and report data on certain categories of employees to the NIOH. The UIF have decided to use the registration and submission of this data to the NIOH by the employer as a means of verification for the processing of non-sector based claims.

Employers who are not registered with the NIOH will be unable to proceed with a claim under Claim Code 2, 3 or 4..

To register with the NIOH you are directed to visit their website to complete the registration and employee declaration. At least 4 days should be allowed between receipt of your Business ID, upon successful registration, and returning to the TERS portal to lodge a claim.

Claim Process

  1. All claims will be lodged via the UIF online portal and, irrespective of claim code, you will be required to upload the following documents:
  • Signed approval / acceptance letter;
  • Bank Confirmation Letter (current);
  • Proof of payment to employees for previous benefits claimed & received for the prior period (e.g. EFT, payroll report, pay recon);
  • Refund to the UIF (if applicable); and
  • Letter of authority

(these are the same documents required for previous TERS applications)

  1. If you intend making a claim on behalf of an employee falling under Claim Code 2, 3 or 4 you will be required to complete the two step verification process:

Step 1: Verification of Employer Registration with NIOH

You will be asked to confirm (via dropdown) your registration with the NIOH and also that you have declared your affected employees.

Step 2: Verification of Employee Declaration with NIOH

You will be required to individually capture the details of each affected employee, whose ID/Passport/Asylum seeker number will be verified against those in the NIOH database.

Important Areas to Note When Applying

Lockdown Period

Benefits will be calculated by the amount of days claimed within the designated lockdown period, which is from 16 October 2020 to 31 December 2020. Any dates which do not fall within this range will not be accepted.

Monthly Salary

Regardless of the lockdown period being claimed (even if for the full two-and-a-half months’ lockdown period) you must only enter the normal monthly salary for the employee. DO NOT alter/extrapolate this value to meet the cumulative lockdown period.

Remuneration earned for hours worked (excluding leave income and advance)

Unlike monthly salary, this column must reflect the full lockdown period’s cumulative remuneration. The remuneration earned for the entire period must be stated but all advances, ex gratia payments, or income related to annual or other leave must be excluded.


Although Phase 2 of the COVID-19 TERS initiative is seen as an extension of the previous relief program, it is important to note the key differences in Phase 2 relating to who the benefit is actually aimed at. Each specified Claim Code has its own identifying factors and criteria which must be strictly adhered to. This undoubtedly limits the applicability of the initiative this time around and greatly reduces the potential beneficiaries of the relief.  

The UIF can be contacted directly on 0800 030 007 for general queries on this issue as well as the lodging of disputes relating to an application. Greater detail on the process can also be found in the UIF’s correspondence sent to employers. 

If you have any questions on how the information provided in this blog relates to SimplePay, you can contact us at [email protected] 

Keep well and stay safe.

Team SimplePay

TERS Update: Appeals Process and Manual Bank Verification

Next week, on 6 April 2021, the UIF is due to open its appeals process for refused applications for the two extended TERS periods. (Read more about these periods here).

A common reason for applications being denied on the TERS portal is due to companies being registered with the wrong or no sector classification (SIC code). As eligibility is limited to certain sectors, a check is run against the SARS database. Unfortunately updating your SIC code with SARS will not fix this issue; instead the UIF has released an appeals process.

Appeals Process

If having received an error message, you believe this to be incorrect and that you are eligible to apply for the two TERS periods, the appeal process is as follows:

  • From 6 April, you can call the UIF hotline (0800 030 007) to lodge an appeal
  • The operator will verify your identity and send you a link to upload your appeal documents (see below).
  • Having uploaded your appeal documents, the UIF will review them and make a decision on your appeal.

The appeal documents are:

  • The Proforma (“COVID-19 TERS Extension – Motivation for Inclusion proforma” attached to UIF email, dated: 29 March 2021) – In this, you can detail why your business is part of one of the restricted sectors eligible for the extended periods, and how the COVID-19 regulations have affected your employees’ ability to work their normal hours. 
  • Supporting Documents – The proforma should be substantiated by supporting documents to show you practice in the SIC code stated. 

The UIF aims to make a decision and inform you of the result of your appeal within 5 working days. Thereafter you should be able to log onto the TERS portal within 72 hours to reapply. When you do this make sure you:

  1. Select the same business activity as you did previously; and
  2. Select “OTHER (APPROVED APPEALS)” on the main division sector.

The application should be the same as for previous periods and is detailed in this earlier blog post.

Bank Verification Process

The UIF has started reaching out by telephone to employers who have been unable to pass the automated bank verification process. If you have experienced such issues please stay vigilant for a call. 

To carry out the verification, the UIF will first ask you 5 security questions, before asking you to provide your latest bank confirmation letter (which must be dated within the last 3 months). This will be used to verify the following for comparison with the portal:

  • CIPC Number
  • Banking details
  • ID number
  • Trade Name

The UIF did not state in its letter how the confirmation letter is to be provided to them, but this should become clear when you are called. They anticipate a turnaround time of 14 working days.

We hope that this information has proved useful to you. If you have any questions on the above information you can contact the UIF on 0800 030 007. If you have any questions for SimplePay, you can reach us at [email protected] 

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well, stay safe and watch out for April fools jokes!

Team SimplePay

COVID-19 TERS Phase 2 Claim Process

Update 19 March 2021: The UIF has released a Frequently Asked Questions Document on the two extended periods. To view it, click here.

Today’s blog post highlights the salient points from the UIF’s correspondence with employers on 3 March 2021 regarding the two new extension periods for Covid-19 TERS: 16 October to 31 December 2020, and 1 January to 31 March 2021. 

Who Can Claim?

Subject to falling within one of the relevant claim codes, the TERS benefit for the extended periods is available for any employees who are registered with the UIF as a contributor and who have not been able to work normally. Each of these elements are broken down below:

Registered with the UIF

This requirement stipulates that only employees who are registered to contribute to UIF are eligible for Covid-19 TERS payments. 

Have not been able to work normally

To be able to claim the benefits for the two extended periods, employees need to fall into one of the following four categories:

CategoryDescription
Claim Code 1Employees (on temporary lay-off or reduced working time) within those sectors that have not been able to operate due to regulatory restrictions as per directives issued. A list of these sectors is detailed in the table below – to verify your company’s eligibility, the UIF will require you to provide the relevant Sector Industry Class (SIC) for your business.
Claim Code 2Employees aged 60 and above, and who cannot be reasonably accommodated at work.
Claim Code 3Employees in isolation and quarantine to prevent the spread of Covid19.
Claim Code 4Employees with co-morbidities and who cannot be reasonably accommodated at work.

Additional Info: Eligible Sectors for Claim Code 1

A list of the eligible sectors in Claim Code 1 is provided in the UIF’s correspondence on 3 March 2021, but is tabled below for your convenience:

  • Cinemas
  • Theatres
  • Casinos
  • Museums, galleries, libraries and archives
  • Gyms and fitness centres
  • Restaurants
  • Venues hosting auctions
  • Venues hosting professional sports
  • Night clubs
  • Swimming pools
  • Bars, taverns and shebeens
  • Public parks
  • Domestic and international air travel
  • Rail, bus services and taxi services
  • E-hailing services
  • Sale, dispensing and distributions, and transportation of liquor
  • Beaches, dams, rivers and lakes
  • Passenger ships
  • Venues where social events are held
  • Venues hosting concerts and live performances
  • Hotels, lodges, bed and breakfast, timeshare facilities, resorts and guest houses
  • Conferencing, dining, entertainment and bar facilities
  • International sports, arts and cultural events
  • Professional services (cleaning and security) within regulated restricted sectors (e.g. hospitality)
  • Other services and activities within regulated restricted sectors (e.g. hospitality)

When to Apply

Applications for the 16 October to 31 December 2020 period are open for employees eligible for TERS under the first category (Claim Code 1). The UIF is still tweaking their system to accommodate applications for employees eligible for TERS under categories 2, 3 and 4; they will communicate as soon as the system is ready to accept these applications.

The UIF is not yet accepting TERS applications for the 1 January to 31 March 2021 period; the opening date for these applications will be announced in due course.

How To Claim

The application process remains the same as the first extension period.  Your applications need to be accompanied by the following documentation:

  • Signed approval / acceptance letter (i.e. the Memorandum of Agreement or application, pre-signed by and for the UIF)
  • Bank Confirmation Letter (current)
  • Proof of payment to employees for previous benefits claimed and received for the prior period (e.g. EFT, payroll report, pay recon)
  • Refund to the UIF (if applicable)
  • Letter of authority

The claim for eligible employees can be captured either on the TERS online portal itself or by completing the spreadsheet template attached to the UIF’s email (also available to download here).

Unfortunately the CSV upload facility is not currently available for these applications, so it is of utmost importance that you ensure that the relevant information is captured correctly in the online portal or spreadsheet. 

To complete the application correctly, the UIF highlights the following critical data fields in particular:

FieldImportant Notes from the UIF
Monthly SalaryThis needs to be the employee’s regular monthly salary and should not be increased in line with the full application period
Remuneration Earned for Hours Worked (Yellow Column on Spreadsheet)This amount must reflect the full lockdown period’s cumulative remuneration, i.e. the amount you have paid your employee between 16 October and 31 December 2020 for the work they’ve done across this full lockdown period but not  payment of advances, leave entitlements or gifts.

Should you have any questions on any of the above, you can contact the UIF on 0800 030 007. Greater detail can also be found in the UIF’s correspondence sent to employers. 

We hope that this information has proved useful to you. If you have any questions on how the information provided relates to SimplePay, you can contact us at [email protected] 

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

President’s 11 January Speech and TERS Disputes Procedure

As the country eases into 2021, the President’s speech on 11 January made it clear that COVID-19, and the resulting restrictions, will remain a part of day-to-day life in 2021. The blog post today looks to give a brief overview of the adjusted level 3 regulations from a business perspective and also flags the TERS disputes process.

Adjusted Level 3

The main change that the President announced in his most recent speech was that South Africa’s land borders will be closed until 15 February. Exceptions apply for goods, repatriation and medical supplies, meaning that this change is likely to mainly impact the tourism and leisure industry.

The above is in addition to the measures announced on 28 December, all of which remain in place.

Below is a table summarising some of the key restrictions to businesses under adjusted level 3 at this point in time.

Non-Hotspot AreasHotspot Areas
Curfew21:00 – 05:00 daily21:00 – 05:00 daily
Business closing timesNon-essential stores close at 20:00*Non-essential stores close at 20:00*
GatheringsAll uncontrolled social gatherings are prohibited. Gatherings at businesses permitted which are permitted to be open is allowed, in line with the occupancy limitations.All uncontrolled social gatherings are prohibited. Gatherings at businesses permitted which are permitted to be open is allowed, in line with the occupancy limitations.
Beaches, dams, lakes and riversOpen between 6:00 – 19:00 dailyClosed
Businesses that must remain closedPublic parks, public swimming pools, clubs, bars, taverns, shebeens, Public parks, public swimming pools, clubs, bars, taverns, shebeens, 
Sale and distribution of alcoholNot permittedNot permitted

*List of establishments which must close by 20:00: Cinemas; theatres; casinos; museums, galleries and archives; gyms and fitness centres; restaurants; venues hosting auctions; and venues hosting professional sport.

At this point in time, the only material difference between hotspot and non-hotspot areas is access to beaches, dams, lakes and rivers. The reasoning behind this is that the number of people at any one of these locations cannot easily be regulated or controlled. 

You can find a list of the areas designated as hotspots and the adjusted level 3 Regulations on the Government website.

TERS Dispute Resolution Process

On Friday 8 January, as an employer you should have received an email from the UIF, titled “UIF-TERS – Update letter”. The update letter lays out the process that you can follow if you believe the UIF has not performed one or more of its contractual obligations with you contained in your memorandum of association with them.

The letter highlights that this route is only for disputes and not for enquiries, such as failed bank verifications.

To lodge a formal dispute:

  1. Complete the Dispute Form (attached to the 8 January email, sender: [email protected]a)
  2. Attach any relevant supporting documentation
  3. Email the completed dispute form with attachments to [email protected], with the subject as “COVID-19 TERS Dispute – [Your UIF Reference Number]”

We hope that this information has proved useful. If you have any questions for us, you can contact us at [email protected] 

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

TERS Update Blog: 22 December 2020

Our blog post today draws your attention to our new FAQ, based on the UIF’s TERS update letters from 15 and 18 December 2020. As TERS draws to a close, these letters, and therefore our FAQs, provide information relevant to the 16 September to 15 October application period. They also cover information on correcting earlier periods’ applications, yet to be accepted and / or processed.

You can find our FAQs on this help site page. The FAQs are:

We hope that the FAQ proves useful. If you have any questions on how the above information relates to SimplePay, please feel free to contact us at [email protected]

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

2020 Year in Review and Price Increase Deferment

Like most individuals and companies, SimplePay entered the new decade armed with big dreams and extensive plans for the year that lay ahead. As COVID-19 swept across the world, we were forced to temporarily pause our plans and adapt to the new challenges thrown our way. But one thing has stayed constant throughout: our customers remain our top priority.

It’s with this in mind that we have decided to defer our usual annual inflation-linked price adjustment which is normally effective on 1 January each year. Inflation-linked price adjustments are unfortunately unavoidable, as our sustainability depends on us staying on top of rising costs. However, we recognise that many of you have been through undue hardships in 2020 and we hope that by delaying our price adjustment by a few months, we are able to provide additional relief during these difficult economic circumstances. We will notify you in advance of the effective date for our price adjustment.

As we look back on the year, our team pulled together like never before to ensure that you were equipped to process payroll despite the changing payroll landscape. We rapidly responded to add system functionality as the government introduced various COVID-19 relief efforts and had ever-changing requirements for these. In addition, we assigned a dedicated team to blogging and creating help site articles so that you had easy access to information as it unfolded, and we spent countless hours on phones and emails providing support. We hope that our efforts made this year a little bit easier for you.

Despite the unexpected challenges that we faced in 2020, the SimplePay team still managed to roll out some fantastic new features. Although not an exhaustive list, we’d like to highlight a few of them:

As this year draws to a close, we’d once again like to take this opportunity to thank you for your loyalty, support and understanding throughout the year. We wish you all the best over the festive season and look forward to the positive opportunities that lie ahead in 2021.

Take care and stay safe

Team SimplePay

TERS Updates for September October Applications

Update 1 December 2020: Minister Nxesi has announced that the September / October TERS period will be the last of the scheme. To read the Government Gazette, follow this link.

Hello and welcome to another TERS update blog post. Our information today is taken from the UIF’s most recent update letters, which announced a post-verification audit and highlighted an issue with some applications for the most recent application period. You can read more about the 16 September to 15 October TERS application period in this recent blog post

Post Verification Audit

The UIF has announced that audits of the TERS process will begin from 1 December 2020 and will last for an estimated period of six (6) months. The audits are to be completed by a number of named companies with expertise in this area. This is in line with the Memorandum of Agreement you signed to be able to partake in the TERS scheme.

The UIF requests that you keep at least the following information readily available in hard or electronic format in case you are contacted:

  • UIF COVID TERS application pack 
    • There should be an application pack for each period which you applied to, containing the documents which you submitted;
  • Bank statements relating to your COVID TERS application(s);
  • Each employee’s HR file;
  • *Payroll report from 1 January 2020 to July 2020;*
  • Proof of payment to your employees; and
  • Proof of any refunds to the UIF (if applicable).

*Thankfully, by using SimplePay all of your payroll information is in one centralised location! We hope that this helps you with any prospective bookkeeping which may follow.

NOTE: The information listed above contains personally sensitive information for both you and your employees. Because of this we would recommend that you verify the credentials of anyone who may contact you in this respect.

Issue with SOME September / October TERS Applications

The UIF has announced that some applications received for the 16 September to 15 October period, submitted before 10AM on Wednesday 25 November 2020 did not meet their system’s requirements. As a result, they have been rejected and if this applies to you, you will need to resubmit. The UIF won’t notify you if you fall within this set of applications, so if in any doubt you should check your application status.

This issue does not apply if you applied using SimplePay’s CSV, but if you have made applications manually, this may affect the employees for whom this was done. 

Whether you submitted via CSV or manually, we recommend you log in to your TERS profile and look for the September / October applications in the Saved Employees section. If your applications appear then your submission is deemed to be correct and you don’t need to resubmit. 

If you cannot find your applications for the September / October period, you must resubmit for your employees to receive TERS benefits for this period.

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

State of the Nation Address: 11 November 2020

On Wednesday evening (11 November 2020), our President once again took to the stage to address the nation on how the country is faring against the global pandemic. Whilst the coronavirus remains a real and present threat, the overall tone of the speech was to get the economy back up to running at full capacity. Therefore, if you have concerns about how a potential second lockdown will affect your business, this hopefully provides some reassurance.

In addition to addressing how the Government intends to proceed, there were some more specific and relevant points to pick out of the speech. Here are some of the points that we thought were worth blogging about.

TERS

We can’t remember the last working days that TERS hasn’t come up in some capacity, but the President announced that the final period that TERS will run is for 15 September to 15 October 2020. 

For all the frustration that this scheme has caused you (and us!) it has been a vital lifeline to many over the past eight (8) months. We hope that this news of its conclusion has come to you at a point where your business has sufficiently recovered.

The UIF has not communicated anything further on the opening date for applications  or whether there are any changes to the requirements, but we shall do our best to inform you as and when we know.

State of National Disaster

To be able to react to hotspots of the coronavirus, the state of national disaster has been extended once again until 15 December 2020. 

As stated in our previous blog post, there is a possibility for TERS to run as long as South Africa remains under a state of national disaster, but the President’s speech suggests that instead the relevant Minister will announce the conclusion of TERS to be 15 October 2020.

COVID-19 Social Grant

The Government’s social relief of distress grant helps individuals who are unemployed and do not receive any other type of income or grant, such as TERS or UIF benefits. This was due to conclude in October, but has now been extended until January 2021. More information on the grant can be found here.

Respect for Those Lost to Coronavirus

As a gesture of respect and solidarity to the individuals, families and friends who have lost someone to coronavirus, the Cabinet has suggested that the nation embark on 5 days of mourning for the victims of COVID-19. Between 25 and 29 November, you are encouraged to wear a black armband or similar token to signify respect for those who have departed. 

We hope that this information has been useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]

Keep well and stay safe.

Team SimplePay

COVID-19 TERS Update

Hello and welcome to another TERS update blog 🙂 The UIF released another TERS update on 6 November, which addressed some of the outstanding issues still being experienced by TERS applicants. You can read our summary of their previous update letter from 19 October in this blog post.

Please note that if you aren’t currently experiencing issues with TERS, you don’t need to change anything on your current TERS profile or applications. However, we still encourage you to read this post in case it covers actions you need to take in the future.

Bank Verification Issues

If your TERS profile is showing that your bank verification has been unsuccessful, the UIF has released advice for certain situations.

If your company bank account was:

  1. Opened in the name of an individual – rather than using the “Trade Name” bank verification, you should use the individual’s RSA ID number to verify the account.
  2. Opened by a partnership / dual account holders – Use the “Trade Name” verification and insert the exact name of the bank account profile.

N.B. The above advice should be read alongside that provided in our previous blog post, linked here for ease of reference.

You should only make changes to your verification details if your bank account verification status registers as failed. Trade Name verification can take a number of days to be verified by your bank, so if you made the change recently, this might still be being processed.

Refunds

If you have refunded a sum to the UIF for any TERS overpayments and want a receipt for this refund, you can get this by completing the following steps:

  1. Log in to the TERS portal.
  2. On the red banner, click “Employer Details”, then Refunds to UIF.
  3. Enter your UIF reference number and Click Proceed.
  4. A table will appear with the refunds you’ve made, their amounts and the date of each refund.

Letter of Authority

If you have assigned the TERS application process to a member of staff or outsourced it, the individual needs a letter of authority in order to act on behalf of your company. Having logged on to the TERS portal, there will be a box titled “Applicant Information”. If under “Applicant Type” you select ORGANISATION STAFF or EMPLOYER REPRESENTATIVE, it is necessary to upload a letter of Authority.

The letter of authority needs to be on your company letterhead and must provide the details of your employee or employer representative. It must also state that they have had consent from the company to act for the full or the full relevant period – please confirm the dates with the UIF if you’re unsure.

UI-19s For Undeclared Employees

SimplePay cuts through admin by generating the necessary employee UI-19 forms for TERS and UIF claims for you (see our help site).

If for any reason some of your employees have not been declared to the UIF, they can’t receive TERS benefits. From 11 November 2020,  you will be able to declare these employees to the UIF by downloading and completing a Microsoft Excel template from the TERS portal. 

The Excel containing the information of any undeclared employees should then be sent to [email protected].

Switching from TERS to UIF Benefits

If your employees are no longer able to receive TERS benefits, you may wish to switch them onto claiming UIF benefits. If you do this, you must ensure that the date of termination on their UI 19 does not overlap with the last period that they had the TERS benefit claimed.

For example, if the last period for which your employees were eligible for TERS was the June period (1 to 30 June 2020), the termination date on your UI 19 needs to be 1 July 2020. If instead you selected 30 June 2020, The UIF’s system would flag this, as on 30 June your employee would receive both UIF and TERS benefits. If you submit a UI 19 form with overlapping dates there are safeguards in place to stop dual payment, but doing this will likely delay your employees’ applications.

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course

Keep well and stay safe.

Team SimplePay

TERS: Updates and Clarifications

The blog post today is aimed at trying to provide some much needed clarity on the TERS process. These changes, as outlined in a recent UIF update letter, were first introduced in our blog post from 5 October. The content of this blog post is taken from and summarises the UIF’s official update letter dated 14 October, sent to all employers.

Our post today covers:

  1.  how to determine salary and remuneration paid on applications;
  2.  the finer details of the bank verification step;
  3.  an update on foreign national applications; and
  4.  a reminder of how to end service on SimplePay.

1.a – How to Determine the Correct Monthly Salary to Declare

The monthly salary column of your TERS CSV, should reflect the aggregate of the wage and fringe benefits you pay to each of your employees. As SimplePay pre-populates this column, provided your employee’s salary information is correct, there’s nothing further to worry about. It is worth noting that if this value is not accurate, the UIF has introduced a new verification step.

The UIF is cross referencing the “taxable earnings” value for your employees’ March 2020 uFiling submission, in order to ensure that salaries are not inflated. If the values differ, the lower value will be used for the calculation of TERS benefits.

This is not a retrospective change, meaning it will only be applied to applications that have been processed from 3 September onwards. The change will though apply to all applications past this date, regardless of the lockdown period to which they relate. Unfortunately, even if you had legitimate reasons for increasing an employee’s salary, there is no way to apply to receive the higher sum that this would yield. 

1.b – What is the Correct Value for Remuneration?

To answer this question, it helps to take one step back. An employee is entitled to TERS benefits where he or she earns a reduced salary due to:

  • business closure;
  • comorbidities (an illness which puts the employee at an increased risk);
  • reduced working hours; or
  • having to take a temporary reduction of salary due to operational requirements.

Any of your employees satisfying the above can receive TERS benefits. Importantly though, where your employees receive remuneration in addition to TERS benefits for any given period, this needs to be recorded. This is because the aggregate of the TERS payment, plus the reduced remuneration paid by you cannot be greater than the amount the employee would ordinarily earn. Because of this, it’s important you know what falls under remuneration.

The UIF has clarified that all amounts / payslip components that would normally count as remuneration are included, except for loans, advances and payments related to leave taken.

2. Bank Verification

As part of the improvements to the TERS process, bank verification steps have been introduced. To help avoid delays it is important that you provide correct banking information. 

Some of the most common reasons for the failure of bank verification include:

  • The incorrect Personal ID number is used. This should be that of the bank account holder. If it is a joint account, you should ensure that it is the primary holder’s ID used.
  • If the bank account is held in a trade name, it is important that it matches the bank account’s name. 
    • If the bank account includes special characters, these should be used
    • Do not include any “t/a” sections of the bank account information
    • If the account’s name is in Afrikaans, this is how it should appear

Single Bank Account for Several UIF Entities

If you have several companies that pay into one bank account and you wish to claim TERS benefits to all the employees of the different companies, you will need to use the “Trade Name Verification” option to verify these UIF entities.

On the TERS portal, you will need to change all of your companies’ names to match the company name stated on the bank account. This will mean that you will have more than one UIF entity with the same name on the TERS portal, but also allows you to apply for benefits for all employees.

If you are at all unsure about this we would encourage you to get in touch with the UIF on 0800 030 007.

3. Foreign Nationals Update

The UIF has said that it’s currently working with the Department of Home Affairs to verify the foreign nationals. No payments will be made until the UIF has verified individuals’ identities, but it hopes it will manage this within the next fortnight.

Foreign nationals must be declared via uFiling, regardless of whether you submitted their declarations to the UIF using SimplePay.

How To Change Existing Applications

If you now realise that there’s an issue with one or more of your applications, this can be done using the UIF’s discrepancy function. Corrections can only be made once per employee, per application period so it’s crucial that you make the amendments carefully and accurately.

The discrepancy functionality is open for claims made up to and including the July / August application period, and will open in due course for the later lockdown periods.

How To End Service on SimplePay

It is important to correctly reflect your employees’ current working status on SimplePay for several reasons. Having this information allows:

  • SimplePay to provide you with accurate auto filled TERS CSVs;
  • you to make correct submissions to SARS;
  • Your employees to claim UIF where necessary; and 
  • Reduces your monthly charge to the number of active employees

To allow for SimplePay to provide you with accurate auto filled TERS CSVs, make correct submissions to SARS and reduce your monthly premium to an appropriate amount, it is important to correctly reflect your employees’ current status on SimplePay.

For a reminder of how to end an employee’s service on SimplePay, you can read this previous blog post.

We hope that this information has proved useful to you. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected] 

Equally, if you are not yet a client of SimplePay but would like to be, why not try out our service free? You can sign up for your free 30-day trial here, get to grips with our user-friendly service by reading our getting started page, or try our free online course. Concerned about cost? Don’t be; we’ve simplified that too – check out our pricing page. Alternatively, you can request a formal quote if you need one here.

Keep well and stay safe.

Team SimplePay